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V3678-15 24 November 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · renta mundial

German pensions received by Spanish residents are taxable in Spain

A retiree residing in Spain inquired how to justify to the Tax Agency that their German pension is public and taxed in Germany. The DGT ruled that, under the Double Taxation Convention between Spain and Germany, these incomes are taxable in Spain.

The question raised

Question posed In the event that requested by the Tax Agency, how to justify to it that the pension received from Germany is public and its taxation in Germany.

The DGT's ruling

Pensions originating from one State paid to a resident of the other State may only be taxed in the State of residence. If the pension is public and paid by the German State to a natural person for services rendered to it, and the beneficiary is a national and resident in Spain, it shall only be taxed in Spain according to the Convention. In any case, the income shall be taxed in Spain as employment income.

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