Spanish pensions drawn from abroad
Pensions are the only non-resident income not taxed at a flat rate but on a progressive scale. They are also the income where a double-taxation treaty most often intervenes: under many treaties a private pension is taxable only in the country of residence.
How it is calculated
In three steps. First the scale is applied to the FULL annual pension to give the annual tax. Then the average rate is worked out by dividing that tax by the annual pension. Finally that average rate is applied to the amount actually being declared for the period. The order matters. Declaring a single monthly payment and running it straight through the first band would tax at 8% someone whose annual pension puts them at a considerably higher average rate.
Who declares it
The non-resident recipient of a Spanish-source pension. Where the payer has already withheld tax, it is credited against the bill; where the withholding exceeds the tax, the result is a refund. Residence does not change the scale: an EU resident and a third-country resident are taxed identically. A treaty, however, may change it.
The scale
Up to €12,000 a year, 8%. From €12,000 to €18,700, 30% on the excess, with €960 accumulated. Above €18,700, 40% on the excess, with €2,970 accumulated. It is a short scale with large steps: crossing €12,000 a year nearly quadruples the marginal rate.
The double-taxation treaty
Pensions are among the income types treaties deal with in most detail, and the usual rule distinguishes government pensions — generally taxable in the paying state — from private ones, generally taxable only where you live. miDeclaro does not apply a treaty rate automatically: treaty caps are not in our tables, and applying the domestic rate where a treaty sets a lower one means overcharging you. So this income is flagged and goes through human review before anything is filed.
When to file
Quarterly where there is tax to pay. Where the result is a refund the window is far longer: from 1 February of the following year, for four years.
Common mistakes
Applying the scale to the monthly payment instead of the annual pension. Assuming there is a tax-free allowance as there is for residents — there is not. Ignoring the treaty and paying the domestic rate where the treaty sets a lower one. And not claiming the refund where the payer withheld more than the tax due.
A worked example with real figures
A Spanish-source pension of €13.200 a year, declared in full with no tax previously withheld. This is the worked example used in the Spanish tax agency's own manual.
- Gross income
- €13,200.00
- Taxable base
- €13,200.00
- Rate applied
- 10%
- Tax due
- €1,320.00
- To pay
- €1,320.00
Computed with rate table 2025.1 — the same one miDeclaro uses to generate your return. Not a rounded estimate.
Deadlines
Quarterly, where tax is due
1 July 2025 — 20 July 2025
The 1st to the 20th of the month following the quarter of accrual. The dates shown are for the second quarter.
Direct debit available until 15 July 2025
Refund claim
1 February 2026 — 31 January 2030
Where the tax withheld exceeds the liability, the refund can be claimed from 1 February of the following year and for four years after that.
Work out the tax on your pension
Tell us the annual amount and what was withheld, and we will give you the tax, the average rate applied, and whether a refund is due.
Calculate my returnRates and deadlines for the 2025 tax year. Source: AEAT Non-Resident Taxation Manual (May 2025); docs/non_resident_tax_rates_spain.xlsx.