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V1528-14 10 June 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · residencia fiscal

Costa Rican pensions taxed in Spain as income from work for fiscal residents

A citizen with dual nationality (Spanish and Costa Rican) seeks advice on the Spanish tax treatment of their Costa Rican retirement and widowhood pensions after relocating to Spain. The DGT determines that if the individual is a fiscal resident in Spain, these pensions must be taxed as income from work under the general tax base.

The question raised

Tax treatment of pensions: specifically, whether they will be subject to double taxation, whether any exemption applies due to their status as a civil servant and educator in Costa Rica, and whether both pensions are aggregated for the calculation of tax or treated separately.

The DGT's ruling

If the inquirer is a tax resident in Spain, they shall be taxed on their worldwide income. Pensions from Costa Rica shall be subject to taxation in Spain if Article 18 of the Convention applies (as they do not derive from services to the State) or Article 19.2.b (due to being a resident and Spanish national). Both pensions are classified as income from employment and must be included in the general tax base without applicable exemptions.

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