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V2338-25 3 December 2025 · SG de Fiscalidad Internacional Criterion in force
IRPF · rentas exentas con progresividad

UK public pensions for UK residents in Spain are exempt from Spanish income tax

A UK resident in Spain enquires about the taxation of a British Armed Forces pension. The DGT determines that if the beneficiary is a UK national, the pension is only taxable in the UK and is exempt in Spain under the double taxation treaty.

The DGT's ruling

Public pensions from the United Kingdom paid by reason of services rendered to that State may only be taxed in the United Kingdom if the beneficiary is a resident and national of that State. As they are exempt in Spain under the Convention, these incomes are considered exempt with progressivity. This implies that they must be included to calculate the average tax rate applicable to the taxpayer's remaining income.

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