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V2001-15 26 June 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rentas exentas

Spanish Social Security disability pension is exempt from Personal Income Tax (IRPF)

A taxpayer inquired whether their Spanish Social Security pension for absolute incapacity is exempt income and if they must file a tax return when combining it with a foreign pension. The Directorate General for Taxes (DGT) ruled that the Spanish pension is exempt and analysed the thresholds for the obligation to file a tax return.

The question raised

Whether the pension received from the Spanish Social Security constitutes income exempt from taxation through the application of Article 7 f) of the Personal Income Tax Law.

The DGT's ruling

Social Security benefits for absolute permanent disability or severe invalidity are exempt income pursuant to Article 7.f) of the Personal Income Tax Law (LIRPF). To calculate the thresholds for the obligation to file a tax return, exempt income must not be taken into account. If the payer of the other (foreign) income is not required to withhold tax, the threshold for filing when there is more than one payer is 11,200 euros (according to the regulations in force at the time) or 12,000 euros following the amendment of Law 26/2014.

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