How are foreign pensions taxed in Spain?

Pensions are treated as general income and taxed at progressive rates, from 19% (up to €12,450) rising to 47% (over €300,000) for 2025.

Are any pensions exempt from Spanish tax?

Certain pensions, such as government or military pensions, may be exempt or taxable only in the country of origin, depending on the applicable Double Taxation Agreement.

How do I avoid being taxed twice on my pension?

If a Double Taxation Agreement exists you may be able to claim relief, often by filing Form 100 in Spain and any additional forms required in your home country.

What should retirees check before moving to Spain?

Review the Double Taxation Agreement with your home country, whether your pension type qualifies for special treatment, and the private health insurance requirements.

Foreign Pensions Tax in Spain

Q: Do I need to declare my foreign pension in Spain?

Yes. If you are a tax resident in Spain you must declare worldwide income, including foreign pensions. The 2025 thresholds are €15,000 if the pension is not your sole source of income, or €22,000 if it is your sole source.

Q: Is tax automatically deducted from my foreign pension?

Not usually. A foreign payer may not withhold Spanish tax, so you must calculate and pay it in Spain under the relevant Double Taxation Agreement.

Editorial transparency and use of artificial intelligence

This article forms part of the CostaLuz Lawyers blog and is published for general informational and educational purposes only. It was prepared with the assistance of artificial intelligence tools and, before publication, was substantively reviewed and editorially approved by Maria de Castro, a Spanish-qualified lawyer registered with the Cádiz Bar Association under number 2745, founder of CostaLuz Lawyers and the person responsible for the editorial review of the published content.

This article does not constitute legal, tax, immigration, employment, estate-planning or investment advice and does not replace an individual assessment and the professional work of the appropriate CostaLuz Lawyers specialist. No action or omission should be based solely on this information.

Q1: Do I need to declare my foreign pension in Spain?

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Yes, if you are a tax resident in Spain, you must declare your worldwide income, including foreign pensions. The obligation to declare depends on the amount and sources of your income, as explained in Article 96.3 of the Income Tax Act. The thresholds are as follows for 2025:

€15,000 if the foreign pension is not your sole source of income.

€22,000 if the pension is your sole source of income.

Q2: What happens if I have multiple sources of income?

If you receive income from multiple payers, the €22,000 threshold generally does not apply. Instead, you must declare your pension if the combined income from secondary sources exceeds €1,500 per year. The Central Economic Administrative Court clarified this rule in a ruling on June 28, 2022.

Q3: Is tax automatically deducted from my foreign pension?

Not usually. If your pension is from a foreign entity, it may not deduct Spanish income tax at source. This means you must calculate and pay your taxes directly in Spain, following the provisions of the Double Taxation Agreement (DTA) between Spain and the pension’s country of origin, if one exists.

Q4: How are pensions taxed in Spain?

Pensions are treated as general income and are subject to progressive income tax rates in 2025:

Up to €12,450: 19%

€12,451 – €20,200: 24%

€20,201 – €35,200: 30%

€35,201 – €60,000: 37%

€60,001 – €300,000: 45%

Over €300,000: 47%

Q5: Are there exceptions for specific pension types?

Yes, certain pensions, such as government or military pensions, may be exempt from Spanish taxation or taxed only in the country of origin, depending on the DTA in place.

Q6: What should I do to avoid double taxation?

If a DTA exists between Spain and the country paying your pension, you may be able to claim relief to avoid being taxed twice. This often requires filing Form 100 (Personal Income Tax Return) in Spain and potentially additional forms in your home country.

You can view here a list of all DTA signed by Spain

Q7: What are the tax considerations for retirees moving to Spain?

Retirees should review:

The DTA with their home country.
Whether their pension type qualifies for special tax treatments.
Private health insurance requirements, as access to public healthcare depends on residency and contributions.

Q8: How can CostaLuz Lawyers help me with pension and tax matters in Spain?

We provide comprehensive guidance, including:

Ensuring compliance with Spanish tax laws.
Advising on applicable tax treaties.
Simulating your tax liability to help you plan better.
Helping you file your income tax return accurately.

Q9: Is there any new legislation affecting pensions in 2025?

In 2025, foreign tax residents in Spain will see their pension taxation affected by the revaluation of pensions aligned with inflation, potentially increasing their taxable base and pushing them into higher income tax brackets. Adjustments to withholding tables and deductions may reduce the impact for seniors and those with disabilities. Rescued pension plans will remain taxable as earned income, possibly increasing tax liability for large withdrawals. Updates to Double Taxation Agreements (DTA) with specific countries could alter how foreign pensions are taxed. These changes highlight the importance of careful tax planning for foreign residents in Spain.

Q10: What if I need assistance with tax filing or understanding my obligations?

Don’t hesitate to contact CostaLuz Lawyers! We specialize in simplifying tax complexities and ensuring you comply with Spanish laws while optimizing your tax position.

Feel free to reach out to us for tailored advice and support on managing your foreign pension and other financial matters in Spain. We’re here to make your retirement stress-free!

Related Tax Guides for Expats in Spain

For a complete overview of taxation in Spain, see our Your Guide to Spanish Tax.

Aviso legal: Esta informacion se proporciona unicamente a titulo orientativo y no constituye asesoramiento fiscal o legal personalizado. Cada caso debe evaluarse de forma individual segun las circunstancias especificas del cliente. Es imprescindible consultar a un especialista cualificado antes de tomar cualquier decision.

Legal Notice: The content on this page is provided for general informational and educational purposes only. It does not constitute legal advice and should not be relied upon as such. No action should be taken based solely on this content without first seeking independent professional legal counsel. Each case requires individual assessment based on its specific circumstances. CostaLuz Lawyers accepts no liability for actions taken or not taken based on this content.

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CostaLuz Lawyers regularly advises expat retirees on declaring foreign pensions in Spain.

Reviewed by María Luisa de Castro, CEO at CostaLuz Lawyers — specialist in Spanish & cross-border tax for expat retirees — Updated 2026

This is general information, not definitive legal advice — every case requires individual analysis.