The ruling dated 28 June 2022 of the Central Economic-Administrative Court (TEAC) establishes certain thresholds to be taken into account when the taxpayer’s only income is a pension from a foreign source that has not been subject to withholding tax in the payer’s State of residence.

The Personal Income Tax Act lays down parameters whereby below certain amounts it is not necessary to file a tax return which on work-related (rendimientos del trabajo) earnings is 22,000 euros and 14,000 euros when the payer of the income has not been obliged to withhold tax in his State of residence.

The TEAC ruled that in this case the limit of 14,000 euros applies because the income has not been subject to withholding tax in Spain.