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V2824-15 29 September 2015 · SG de Fiscalidad Internacional Criterion in force
IRPF · residencia fiscal

UN pension pays Spanish income tax if beneficiary is tax resident

A UN retiree asks whether their pension is tax-exempt in Spain upon moving to reside there. The DGT responds that upon retirement and cessation of official status, tax exemptions lapse and the pension is subject to Spanish personal income tax.

The question raised

Whether the retirement pension received from the UN is exempt from taxation in Spain.

The DGT's ruling

If the taxpayer is a tax resident in Spain, they shall be taxed on their worldwide income pursuant to the Personal Income Tax Act (LIRPF). The tax exemptions provided by the United Nations Convention are granted in the interest of the Organization and cease upon the termination of service through retirement. Therefore, the UN retirement pension must be included in the personal income tax base.

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