Frequently asked questions on the taxation of France-Spain pensions
In which country must I declare my French pension if I live in Spain?
The country of declaration depends primarily on your tax residence and the nature of your pension. If you are a Spanish tax resident and receive a French private sector pension, it will generally be taxable in Spain. By contrast, if you receive a French public sector pension (civil servants, certain special schemes), it generally remains taxable in France even if you reside in Spain. In all cases, an analysis of your specific situation is required to determine your exact reporting obligations.
What is the difference between a public pension and a private pension for tax purposes?
This distinction is fundamental because it determines the country of taxation. French public sector pensions (central government, local authority or hospital civil service, certain special schemes) remain taxable in France under the France-Spain tax treaty, even if you are a Spanish tax resident. Private sector pensions (general social security scheme, Agirc-Arrco supplementary schemes, self-employed professionals) follow the residence rule: if you are a Spanish tax resident, these pensions are taxable in Spain.
If I already pay withholding tax in France, must I still declare in Spain?
Yes, in most cases. Withholding tax in France does not automatically exempt you from your reporting obligations in Spain if you are a Spanish tax resident. Even where the tax is primarily due in France (public pensions), you must generally declare this income in Spain, where it may be taken into account to determine the tax rate applicable to your other income. Conversely, for pensions taxable in Spain, you must request exemption from withholding tax in France by providing a Spanish tax residence certificate.
How can I prove my tax residence to French pension authorities?
To justify your Spanish tax residence to French pension bodies and thus avoid or limit withholding tax in France, you must obtain a tax residence certificate from the Spanish tax authorities (Agencia Tributaria). This document officially certifies that you are regarded as a Spanish tax resident. You must provide it to your French pension funds. The certificate is generally valid for one year and must be renewed periodically.
What happens if I receive both a public pension and a private pension?
If you receive several pensions of different types, each follows its own tax rules under the tax treaty. For example, if you receive a French civil service pension, which is taxable in France, and a general scheme pension, which is taxable in Spain if you reside there, you will need to file returns in both countries. France will tax the public pension, Spain will tax the private pension, and double taxation relief mechanisms will apply to prevent excessive overall taxation of your income.
Do my French real estate income affect the taxation of my pension in Spain?
Yes. If you are a Spanish tax resident, you must declare your worldwide income in Spain, including French real estate income such as rental income. Even if this real estate income remains taxable in France under the tax treaty, it is taken into account in Spain to determine the overall tax rate applicable to your household. This may increase the effective tax rate applied to your pension in Spain. The analysis must therefore be comprehensive and include all sources of income.
Must I continue to declare income in France if I am a Spanish tax resident?
Not necessarily, but it depends on your situation. If you are a Spanish tax resident and receive only French private sector pensions without any other French-source income, you generally no longer have a filing obligation in France. However, if you receive French public sector pensions, French rental income, or certain other French-source income, you must continue to file a return in France for those specific items. Your status as a French non-resident entails specific reporting rules.
What are the risks if I do not declare my pensions correctly?
The risks are significant and may include penalties for failure to file or inaccurate filing in one or both countries, tax reassessments with additional tax and surcharges covering several years, effective double taxation if corrective mechanisms are not properly applied, and prolonged administrative difficulties in regularising your situation. The most common mistakes involve retirees who assume that withholding in France exempts them from any obligation in Spain, or who fail to declare all of their worldwide income in their country of residence.
