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V1642-14 27 June 2014 · SG de Fiscalidad Internacional Criterion in force
IRPF · pensión de jubilación

Dutch pension taxed only in Spain due to residency

A Spanish resident asks whether their Dutch pension, comprising public and private components, should be taxed in Spain or abroad. The DGT states that, under the double taxation treaty, Spain has exclusive taxing power.

The question raised

Whether the pension is completely exempt in Spain or whether it must be taxed in Spain for the percentage that is not of public law. In the latter case, whether the taxpayer can apply the deduction for double taxation for income obtained and taxed abroad, or whether Article 25 of the Convention for the avoidance of double taxation signed between Spain and the Netherlands applies.

The DGT's ruling

For the Netherlands to be able to tax the pension, two requirements must be met: that it is paid from public funds and that it is for services rendered to the State. As both are not met, Articles 19 or 23 of the Convention apply, which attribute exclusive taxing power to Spain. Therefore, there is no double taxation and the deduction in Spain of taxes paid in the Netherlands is not applicable.

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