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V1639-22 8 July 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Argentine retirement pensions taxed in Spain as income from work

A Spanish tax resident enquires how to declare retroactive lump-sum payments of Argentine and Spanish pensions. The DGT states that Argentine pensions are taxable only in Spain and must be attributed to the year of their entitlement.

The question raised

Issue raised - Taxation of the amounts received from both pensions.

The DGT's ruling

Argentine retirement pensions, being from previous employment, may only be subject to taxation in Spain pursuant to the Double Taxation Convention. Both pensions (Argentina and Spain) are considered income from employment. Amounts received in 2022 for previous periods must be attributed to the years in which they became due (2020, 2021, or 2022) through a supplementary tax return if they were not included at the time. Bank transfer fees are not deductible.

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