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V1998-20 18 June 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · régimen especial de tributación

Pensions from pre-move activities exempt under LIRPF special regime

A British pensioner working in Spain under the LIRPF special regime asks whether their UK pension should be taxed as employment income in Spain. The DGT responds that if the pension arises from activity before relocation and is not considered obtained in Spanish territory, it is not subject to this regime.

The question raised

Interpretation of Article 93.2.b) of the Personal Income Tax Law: whether the provisions of said precept, regarding the understanding of what is obtained in Spanish territory as "The totality of the employment income obtained by the taxpayer during the application of the special regime", includes the pension received from the United Kingdom.

The DGT's ruling

If the pension derives from an activity carried out prior to the relocation to Spain, the specialty of Article 93.2 b) of the LIRPF does not apply. If the pension does not arise from employment provided in Spain nor is it paid by a resident entity in Spain, it is not considered income obtained in Spanish territory according to the TRLIRNR. In that case, the taxpayer would not have to pay tax on said pension under the special regime.

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