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V2593-16 13 June 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · renta mundial

Argentine pensions and indemnities may be taxable in Spain on worldwide income

A Spanish resident asks whether a lifetime pension and an indemnity from Argentina are taxable in Spain. The DGT confirms both incomes are subject to Spanish taxation and explains how to avoid double taxation.

The question raised

Question posed: In relation to said pension, as well as assuming that the compensation provided for in Law 24.043 is granted, to determine whether both must be taxed in Spain.

The DGT's ruling

As a resident in Spain, the taxpayer is taxed on their worldwide income, including income from Argentina. Since the Double Taxation Convention does not provide specific treatment for this income, the 'other income' clause applies, allowing for taxation in both Spain and Argentina. In the event that Argentina taxes this income, Spain will allow a deduction for international double taxation in accordance with the Convention and the Personal Income Tax Law (LIRPF). If the income were exempt in Argentina, no deduction may be applied in Spain.

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