The Tax Agency operates an extraordinary period of regularization of income tax returns without penalties, charges or interest.
Do you receive a foreign retirement pension?
In Spain there are many taxpayers who go to work abroad (Germany, France, Regne Unit, etc.) and who are currently collecting retirement pensions (public or private) paid by these foreign countries.
However, most of these taxpayers do not include these incomes in their personal income tax return, since these foreign pensions do not appear in the tax returns and gave the feeling that there was no control over these incomes.
Are you obliged to declare this foreign retirement pension?
The Personal Income Tax Law indicates that natural persons residing in Spain must pay taxes under the WORLD INCOME, that is, they must declare to Spain the income that they obtain in any part of the income, without prejudice to what is provided for in the Agreement to avoid international double taxation signed between Spain and the country of origin of the income.
Consequently, the taxpayer is obliged to include foreign retirement pensions in the second Income Declaration, as well as income from work, as long as he is obliged to present the declaration.
Transparency and exchange of tax information
The economic crisis has led states to seek international tax cooperation. Consequently, the procedures for exchanging tax information between tax administrations of different countries, especially both European countries, have been improved.
Currently, the Spanish Tax Administration has tax information from other countries, and could claim the debt for non-taxation of foreign pensions from non-prescribed declarations (years 2010 to 2013). These claims for non-payment of debt may generate very high import sanctions.
Now is the time to regularize the current tax situation
The sole additional provision of Law 26/2014, of November 27, provides for some special measures for cases of regularization in personal income tax of income from retirement pensions paid abroad:
1. Extraordinary period for regularization of declarations
From January 1 to June 30, 2015, no charges, interest or penalties will be required from taxpayers who voluntarily regulate their current tax situation. The pension recipient will have to prepare a personal income tax return (Form 100) for each non-prescribed tax period that he regularizes. If the declaration is complementary to a previous one, expressly state this circumstance. The payment of the debt will take place at any time no later than June 30, 2015.
Immediately after submitting the personal income tax return or returns, you must submit a specific form (process code G2299) that will allow you to identify those returns that include foreign pensions.
2. Forgiveness of interest, recàrrecs and sanctions
The taxpayer may request the condonation of interest, charges and sanctions for this concept in administrative acts that have been acquired by the taxpayer. The condonation must be tendered by the interest between the 1st of the year and June 30, 2015 with a single application form (procedure code G9015) that relates all the forgivable concepts that are required by the interest and all the income tax periods. affected.
Therefore, to all those people who collect foreign retirement pensions and who do not even make these incomes in the current income tax declaration, we recommend that the current tax situation be regularized as of June 30, 2015.
If you need our help in preparing the Income Tax Returns and/or the forms or have any questions regarding this matter, please contact us through our email: ambit@ambitassessor.com or contact us at our offices.
We are experts in national and international taxation and we will be happy to help you.
Maribel Isart Llorente
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A Àmbit Assessor, SL has 40 years dedicated to the tax, comptable and labor consultancy of the Pime.
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