If you receive a pension from Sweden and live in Spain, the Double Tax Agreement between Spain and Sweden (1963/1995) 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 Sweden is in principle subject to Spanish IRPF. The Double Tax Agreement (DTA) between Spain and Sweden (1963/1995) 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).
Swedish government service pensions (statlig tjanstepension via SPV, for former Swedish government employees) are taxable only in Sweden under the DTA's government pension article.
Swedish tjanstepension (occupational pension) distributions are taxable in Spain. Swedish providers should apply DTA relief once you provide a residency certificate (skattsedel) issued by the Skatteverket.
Swedish allman pension (inkomstpension and premiepension combined) is taxable in Spain. The Pensionsmyndigheten should be notified of Spanish residency for correct withholding treatment.
Swedish IPS and premium pension (PPM) accounts with values exceeding 50,000 EUR should be declared in Modelo 720.
Tell your Sweden pension provider about your Spanish residency and request DTA withholding relief.
Include all Sweden 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 Sweden. Private/occupational pensions are taxable in Spain. Classification drives the whole analysis.
Review whether your Sweden pension vehicle (defined contribution fund, personal plan) exceeds the 50,000 EUR reporting threshold for Modelo 720.
The Double Tax Agreement between Spain and Sweden was signed in Madrid on 16 June 1976, with a revised version currently in force. It follows the OECD Model Convention. For pensions:
The Swedish national public pension (allmän pension) consists of three components:
All components of the allmän pension are social insurance payments taxable in Spain under Article 17 of the DTA. Sweden applies SINK at 25% on pension payments to non-residents. Obtain a Skatteverket exemption certificate to reduce this to 0% for pensions where Spain has exclusive taxing rights.
Swedish occupational pensions (tjänstepension) are agreed through collective bargaining and cover the vast majority of employed workers. The main agreements are:
The ISK is not strictly a pension vehicle, but many Swedes use it for retirement savings. It is a Swedish investment savings account where growth and distributions are not taxed in Sweden — instead, an annual flat-rate schablonskatt (notional return tax of approximately 1.086% of the account balance in 2024) applies. For Spanish residents: the Swedish schablonskatt is a Swedish domestic tax. Spain taxes actual distributions from an ISK as capital income (rendimientos del capital mobiliario) in the year received. The ISK account balance must be declared in Modelo 720 if it exceeds €50,000.
The IPS was Sweden's individual tax-advantaged pension savings plan, with contributions deductible up to SEK 1,800/year (a modest deduction). IPS was abolished for new contributions in 2016, but existing accounts continue to pay out on retirement. Distributions are taxable in Spain.
Swedish pension income taxable in Spain is rendimientos del trabajo. Combined IRPF progressive rates for 2024–2025:
The reducción por rendimientos del trabajo of up to €7,302 (2024) and personal allowance apply to lower income pensioners. Sweden's national pension (allmän pension) for a full career (45 years at average Swedish wages) is approximately SEK 15,000–20,000/month gross (roughly €1,300–1,750/month at current exchange rates) — placing most recipients in the 24%–30% IRPF brackets, likely lower than the Swedish income tax rates they faced while working in Sweden.
SINK (Särskild inkomstskatt för utomlands bosatta) is Sweden's flat-rate withholding on income paid to non-residents, typically 25% on pensions. To obtain DTA exemption:
Obtain a SINK exemption certificate from Skatteverket for all pensions taxable in Spain. Present to Pensionsmyndigheten and your occupational pension provider to receive pension payments gross.
If you worked as a Swedish state employee (statlig anställd), your PA 16 pension is a government service pension taxable only in Sweden. Do not seek SINK exemption for PA 16. Do not include it in Spanish IRPF.
Swedish schablonskatt on your ISK is a Swedish domestic tax. Spain taxes actual ISK withdrawals as capital income. Coordinate drawdown timing to manage annual Spanish IRPF across both income categories.
Declare Swedish ITP/SAF-LO DC accounts, IPS accounts, and ISK accounts exceeding €50,000. Do not declare allmän pension entitlements or PA 16 defined benefit rights.
The premiepension (PPM) component of the allmän pension is unique: each Swedish worker selects investment funds for their PPM savings through the Pensionsmyndigheten's online platform (previously known as PPM, now "Fondtorg"). As a Spanish resident drawing your allmän pension (including the premiepension component), the pension payments are declared in IRPF as employment income. However, the underlying fund performance within the PPM account does not create annual taxable events in Spain — only the actual pension payments received do. The fund investment decisions (fund switches within the PPM system) are irrelevant for Spanish tax purposes.
If Sweden has applied SINK withholding on your pension before the Skatteverket exemption is in place, you can:
For pensioners who are KAP-KL members (municipal employees), the classification of your pension as private vs. government-service is particularly important. KAP-KL covers municipal (not state) employees — municipalities are separate legal entities from the state — and their pensions are generally treated as private pensions taxable in Spain. Confirming your employment classification with your former employer and pension fund before applying for SINK exemption avoids misclassification errors.
For expert advice on your Sweden 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.
