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V0977-14 7 April 2014 · SG de Fiscalidad Internacional Criterion in force
IRPF · residencia fiscal

UN retirement pension is taxable in Spain if the beneficiary is a fiscal resident

A UN retiree asks whether their pension is tax-exempt in Spain upon relocating. The DGT states that once service cessation occurs, tax exemptions for officials cease and the pension becomes taxable under Spanish personal income tax.

The question raised

Is the retirement pension received from the UN exempt from taxation in Spain?

The DGT's ruling

If the consultant is a tax resident in Spain, they shall be taxed on their worldwide income in accordance with the Personal Income Tax Law (LIRPF). The tax exemptions provided under the Convention on the Privileges and Immunities of the United Nations are granted to ensure that officials perform their duties independently; however, such status and its privileges cease upon the termination of service through retirement. Therefore, the retirement pension must be included in the personal income tax taxable base.

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