If you receive a pension from Denmark and live in Spain, the Double Tax Agreement between Spain and Denmark (1972/2011) determines where you pay tax. This guide explains all pension types.
This article is for general informational purposes only and does not constitute tax or legal advice. Pension taxation depends on individual circumstances and applicable Double Tax Agreements. Always consult a qualified international tax specialist before making decisions. Jacob Salama · internationaltaxlegalspain.com · Bar No. 11.294 ICAMalaga.
As a Spanish tax resident, all worldwide income including pensions from Denmark is in principle subject to Spanish IRPF. The Double Tax Agreement (DTA) between Spain and Denmark (1972/2011) determines which country has the primary taxing right over each pension type. The key distinction is between government service pensions (typically source-country only) and private/social security pensions (typically residence country - Spain).
Danish government employee pensions (paid from state funds for services to the Danish state, regions, or municipalities) are government service pensions taxable only in Denmark.
Danish occupational pension distributions and ATP are taxable in Spain. Apply to your Danish pension fund and SKAT (Danish Tax Authority) for DTA reduced withholding.
Danish folkepension and ATP are taxable in Spain. Notify Udbetaling Danmark of your Spanish residency for correct withholding.
Danish kapitalpension, ratepension, and aldersopsparing accounts with values exceeding 50,000 EUR must be declared in Modelo 720.
Tell your Denmark pension provider about your Spanish residency and request DTA withholding relief.
Include all Denmark pension income in your annual IRPF return. Claim the foreign tax credit for correctly withheld source-country tax.
Government service pensions are taxable only in Denmark. Private/occupational pensions are taxable in Spain. Classification drives the whole analysis.
Review whether your Denmark pension vehicle (defined contribution fund, personal plan) exceeds the 50,000 EUR reporting threshold for Modelo 720.
The Double Tax Agreement between Spain and Denmark was signed in 1972 and has been in force with subsequent updates. The DTA follows the OECD Model Convention. For pensions, the relevant provisions are:
The Folkepension is Denmark's universal state pension paid to all Danish citizens and permanent residents who meet the age and residency requirements. It is funded from general taxation (not contributions). Under the DTA, the Folkepension is classified as a social security / general pension payment taxable in the country of residence — Spain. Denmark applies an A-skat withholding by default; you must apply to SKAT for exemption or reduction under the DTA once Spanish residency is established. The gross Folkepension amount is declared in Spanish IRPF as rendimientos del trabajo.
ATP is Denmark's mandatory supplementary labour market pension, established in 1964. Both employers and employees make small fixed contributions throughout working life. ATP operates as a defined benefit-like scheme but with individual contribution records. For a Spanish resident, ATP pension distributions are taxable in Spain under Article 17 of the DTA as occupational/supplementary pension income. Include the full ATP payment in your IRPF return. Apply to SKAT and ATP to eliminate Danish withholding once you are a Spanish tax resident.
LD is a supplementary fund originally established to compensate workers for the abolition of an index-linked wage supplement in the 1970s. Individual LD accounts accumulated over decades. LD now pays out amounts on maturity (age 65 or retirement) as lump sums or staged payments. Distributions are taxable in Spain as employment income. The 30% irregular income reduction (Art. 18.2 LIRPF) may apply to lump sums accrued over more than two years.
Tjenestemænd (civil servants) at state, regional, and municipal level in Denmark receive a defined-benefit pension paid directly by the public employer or the state. These are government service pensions under Article 18 of the DTA — taxable only in Denmark. Danish residents who retire to Spain and receive tjenestemandspension should continue having Danish A-skat applied and should not include this pension in Spanish IRPF (unless they are Spanish nationals, in which case it reverts to Article 17).
Denmark has an extensive system of sector-based occupational pension schemes (arbejdsmarkedspensioner) established through collective bargaining agreements. These cover most private and public sector employees. Major funds include:
Distributions from all these private-sector and quasi-public occupational funds (when not linked to government service tjenestemand status) are taxable in Spain under IRPF as rendimientos del trabajo.
All Danish pension income taxable in Spain is classified as rendimientos del trabajo. The progressive national + regional IRPF rates for 2024–2025 are approximately:
The reducción por rendimientos del trabajo (Art. 20 LIRPF) of up to €7,302 reduces the taxable base for pension income up to approximately €14,000/year. Combined with the personal allowance of €5,550, a Danish pensioner receiving only the Folkepension (currently approximately DKK 96,000–114,000/year depending on cohabitation status) may have a very low effective IRPF liability in Spain — often significantly less than what Danish income tax would have been.
SKAT (the Danish Tax Agency) applies A-skat withholding by default on all pension income. To obtain relief for pensions taxable in Spain under the DTA:
Submit Form 02.033 to SKAT with your Spanish residency certificate. Obtain a DTA withholding exemption and forward it to your Danish pension providers (ATP, PFA, Danica, Udbetaling Danmark).
Include all Danish pensions except tjenestemandspension (government service) in your annual Modelo 100 IRPF return. Claim a foreign tax credit for any Danish A-skat not yet eliminated.
Declare Danish individual pension savings accounts (ratepension, livrente, aldersopsparing) exceeding €50,000 in Modelo 720. File by 31 March for the prior 31 December balance.
If your Danish pension plan permits a lump-sum capital payment, assess whether taking it before Spanish residency begins is advantageous. The 30% irregular income reduction applies in Spain to qualifying multi-year accrual payments.
For expert advice on your Denmark pension and Spanish IRPF position, contact internationaltaxlegalspain.com.
Book a consultation with Jacob Salama, specialist in international pension taxation and double tax treaties in Spain.
