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V1421-14 28 May 2014 · SG de Tributación de las Operaciones Financieras Criterion in force
IRNR · planes de pensiones

Spanish pension plans for German residents generally taxed in Germany

A German tax resident enquires where tax on withdrawals from Spanish pension plans should be paid. The DGT states that, under the Spain-Germany double taxation treaty, such pensions are generally taxed only in Germany, except in specific cases.

The question raised

Regarding the State in which the benefit is taxed.

The DGT's ruling

Pursuant to Article 17.1 of the Spanish-German Convention, pensions and annuities paid to a resident of a State may be taxed only in that other State (Germany). Notwithstanding, if the requirements of paragraphs 2 or 3 of the aforementioned article are met, Spain may apply its domestic regulations within the established limits. In the event of double taxation, Germany shall eliminate it in accordance with Article 22.2 of the Convention.

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