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V1440-14 29 May 2014 · SG de Fiscalidad Internacional Criterion in force
IRPF · residencia fiscal

US widow's pensions may be taxable in Spain depending on nature and treaty

A Spanish resident with a US widow's pension seeks advice on fiscal residency and taxation. The DGT states that if resident in Spain, taxation depends on whether the pension is from Social Security or a public pension for services rendered.

The question raised

Tax residence and place of taxation

The DGT's ruling

If the widow's pension is paid by the U.S. Social Security, it may be subject to taxation in said State according to the Convention. In Spain, the income shall be taxed as income from employment and the deduction of the tax paid in the U.S. shall be permitted through the international double taxation deduction method. If the pension were private, it would only be taxed in Spain; if it were public due to services rendered to the State, it would be taxed in the U.S. unless the beneficiary is a resident and national of Spain, in which case it would be taxed in Spain.

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