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V2519-15 5 August 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · residencia habitual

Pensions from Germany received by a resident in Spain are taxed in Spain

A taxpayer resident in Spain asks whether they must pay tax on a pension received from Germany. The DGT responds that, according to the Convention between Spain and Germany, these pensions may only be taxed in the State of residence, i.e., in Spain.

The question raised

Question raised: Whether the pension received is subject to taxation in Spain.

The DGT's ruling

If the inquirer is a resident in Spain, they shall be taxed on their worldwide income. According to the Double Taxation Convention with Germany, pensions originating from one State paid to a resident of the other may only be taxed in the State of residence. Therefore, the German pension is only taxed in Spain as employment income, regardless of whether it is a public or private pension.

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