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The DGT confirms that residents in Spain are subject to tax on worldwide income, but the double taxation treaty limits tax liability depending on the type of pension.
Question raised: Whether said pension is subject to taxation in Spain under the Personal Income Tax.
Pensions for former employment paid to a resident in Spain are only taxed in Spain, unless they are public pensions paid by the French State or its entities. In the case of public pensions, the taxing power belongs to France, unless the beneficiary is a resident in Spain and of Spanish nationality without holding French nationality. If these public pension conditions are not met, the pension shall be taxed in Spain.
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