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V1347-19 10 June 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención

Foreign disability pensions may be exempt in Spain if specific conditions are met

An Italian citizen resident in Spain asks whether their INPS pension is exempt from IRPF. The DGT states that to apply the exemption under article 7.f) of the LIRPF, the foreign pension must correspond to absolute incapacity or severe disability, and the paying entity must be a substitute for Social Security.

The question raised

Whether said pension is exempt from taxation in Spain through the application of Article 7.f) of the Personal Income Tax Law.

The DGT's ruling

A disability pension received from abroad is exempt if the recognized degree of incapacity is equivalent to absolute incapacity or severe disability and the paying entity is a substitute for Social Security. The taxpayer must prove these requirements through admissible means of evidence. A one hundred percent incapacity percentage abroad is not sufficient to automatically equate it with the Spanish system.

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