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V1013-20 22 April 2020 · SG de Fiscalidad Internacional Criterion in force
IRPF · residencia fiscal

UN official retirement pensions are subject to Personal Income Tax in Spain

A tax resident in Spain enquired whether their retirement pension as a former official of a UN specialised agency was tax-exempt. The Directorate-General for Taxes (DGT) ruled that tax exemption ceases once service ends through retirement.

The question raised

Whether the retirement pension is entitled to the exemption on remuneration set forth in the Convention on the Privileges and Immunities of the United Nations and the Convention on the Privileges and Immunities of the Specialized Agencies of the United Nations

The DGT's ruling

Tax exemptions on salaries and emoluments are granted to officials in the interest of the organizations and not for personal benefit. Upon retirement, the status of official ceases, as do the circumstances motivating said exemptions. Therefore, the retirement pension received from a specialized UN agency is subject to Personal Income Tax (IRPF) in Spain.

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