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V2129-24 2 October 2024 · SG de Fiscalidad Internacional Criterion in force
IRPF · pensión de jubilación

ESA pension of former employee taxed by Spanish IRPF for resident fiscal in Spain

A Canadian national resident for tax purposes in Spain receives a pension from the European Space Agency. The DGT concludes that the exemption provided in Article XVIII of Annex I of the ESA Convention does not apply to pensions of former staff, meaning the pension is subject to Spanish IRPF.

The question raised

Application of the exemption provided in the Instrument of Ratification of 15 January 1979 of the Convention Establishing a European Space Agency, made in Paris on 30 May 1975, to the pension received.

The DGT's ruling

Article XVIII.1 of Annex I of the ESA Convention exempts the salaries of active personnel from national income taxes, but Article XVIII.2 expressly excludes said exemption regarding income and pensions paid to former Directors-General and former staff members. Therefore, the retirement pension received by the applicant, a tax resident in Spain, is subject to Personal Income Tax (IRPF) in accordance with Law 35/2006, without prejudice to any applicable double taxation treaty.

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