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A Swiss resident receiving disability and illness benefits from an insurance provider is deemed to receive 'other income' under the Spain-Switzerland double taxation agreement.
Question posed: Taxation of amounts paid as benefits.
Income derived from insurance contracts covering contingencies such as disability or illness cannot be classified as interest or capital gains. Therefore, they are considered 'other income' under Article 21 of the Convention between Spain and Switzerland. Consequently, if the beneficiary proves their residence in Switzerland, such income may only be taxed in that State.
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