Income tax return for foreign pensioners

How to declare foreign pensions in your income tax return

If you’re a tax resident in Spain, you must declare all income worldwide, including foreign pensions. These pensions are reported under the “monetary remuneration” section as income from work, since the Spanish Tax Agency classifies pensions as earned income (rendimientos del trabajo).

🏦 What if Tax Was Withheld Abroad?

• No withholdings in the origin country: You pay tax on the full amount in Spain.
• Withholdings applied abroad: You must complete box 96 under “Other deductions – International double taxation” in the Spanish tax return (IRPF).

To avoid double taxation:

1. Enter the gross pension income in the relevant field.
2. Enter the amount withheld abroad in the corresponding box.

The system will automatically calculate the deduction, so you don’t pay tax twice.

⚠️ What Happens If You Don’t Declare?

Failing to declare foreign pensions can lead to several issues:

• It may affect your eligibility for the minimum pension supplement, which is designed to top up pensions below the minimum threshold.
• If you received the supplement without declaring other income (like a foreign pension), Social Security can request a refund of the unduly received amounts, according to Social Security.

🧠 Spain requires declaration of any foreign pension income, even if the country of origin does not require a minimum contribution period to grant it.

Exceptions in Tax Treaties: What You Should Know

Tax treaties between Spain and other countries define which country has the right to tax each type of income:

• Sometimes, only the country of residence can tax it.
• Other times, only the country of origin has that power.
• In many cases, both countries can tax the same income—but the country of residence must apply mechanisms to avoid double taxation.

⚠️ Don’t just think of salary—investment returns and capital gains also count as taxable income under these treaties.

Your foreign pension, declared right

If you live in Spain and receive a pension from abroad, you will usually need to report it on your Spanish income tax return, and double taxation treaties can stop you from paying twice. Getting it right matters.

At TaxDown we help you file your return with every deduction applied so you pay only what is fair. Get started for free with us.