Skip to content
Back to index
V1641-15 27 May 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Pension plan benefits treated as employment income; tax residency depends on foreign residence proof

The taxpayer asks whether they must file their IRPF return in Spain after withdrawing from a pension plan and moving to Turkey. The DGT responds that pension plan benefits are considered employment income, and tax residency in Spain will depend on whether foreign residence in Turkey is proven to exclude more than 183 days of stay.

The question raised

In relation to said amount derived from the redemption of the Pension Plan, whether the inquirer must file in Spain, in the year 2015, the Personal Income Tax return corresponding to the 2014 tax period.

The DGT's ruling

Pension plan benefits are considered earned income and must be included in the general taxable base of the Personal Income Tax (IRPF). The obligation to pay tax in Spain on worldwide income will depend on whether the inquirer is a tax resident in Spain according to the criteria of physical presence or the center of economic interests. If tax residence in another country is proven, sporadic absences do not count towards the 183-day period. In the event of a conflict of residence, the Convention between Spain and Turkey shall apply.

Book your free first meeting