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V1593-14 20 June 2014 · SG de Fiscalidad Internacional Criterion in force
IRPF · residencia fiscal

Brazilian pensions taxed in Spain based on source and amount received

A Spanish resident enquires about the taxation of their Brazilian pension. The DGT clarifies that the treatment depends on whether the pension is from public administration services or exceeds 3,000 US dollars annually.

The question raised

Taxation of the pension and elimination of double taxation

The DGT's ruling

If the pension is for services to a Brazilian public administration and the beneficiary is a Spanish national, it is taxed only in Spain. If it is not for public services, pensions of up to 3,000 USD per year are taxed only in Spain, whereas the excess may be taxed in both States. Spain will apply the double taxation deduction according to the Convention.

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