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A person with dual Spanish and Finnish nationality asks how pensions from both countries are taxed based on their residence. The DGT states that the application of the Spain-Finland Double Taxation Agreement varies depending on whether the person resides in Finland or Spain and their nationality.
Question raised: Taxation of said pensions in their capacity as a non-resident in Spain and in the event that they were to become a permanent resident in Spain.
If the taxpayer is a non-resident in Spain and holds Finnish nationality, the Spanish pension is taxed only in Finland pursuant to the Convention. If the taxpayer is a resident in Spain, the Finnish pension is taxed only in Spain due to their Spanish nationality. In the event of residence in Spain, both pensions are taxed in Spain as income from employment on a worldwide basis.
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