The Superior Court of Justice of Madrid has ruled in favor of a couple who appealed a claim from the Treasury for a value of 48,956.59 euros in personal income tax for 2018. The Tax Agency required them to pay taxes for two pensions from abroad, one from the World Tourism Organization (UNWTO) and another from the United Kingdom, but the court considers that they should not do so.
In ruling 157/2025, of March 24, the magistrates annul both the previous resolution of the Regional Economic-Administrative Court (TEAR) and the liquidation of the Treasury. In addition, they force the Administration to pay the costs of the process.
Treasury rejected the OMT pension exemption
One of the key points of the case was the retirement pension that the taxpayer received after working at the UNWTO. The Treasury defended that this pension was not exempt from taxes, relying on rulings from the Supreme Court on the UN, where the exemption is limited to the salaries of active workers.
However, the court does not share this idea. In the ruling he explains that the specific agreement between Spain and the UNWTO includes not only salaries, but also “benefits”, and retirement pensions fall within that concept.
Furthermore, it clarifies that it does not matter how the pension is collected (in a single payment or month by month). According to the ruling, the rule does not exclude periodic pensions, as the Treasury maintained, but rather extends the exemption to all.
Treasury forced to claim the United Kingdom
The second problem had to do with another pension, in this case from the United Kingdom. The Treasury denied the taxpayer the possibility of avoiding paying taxes twice and forced him to claim a refund from the British country.
The court also does not agree with this criterion. It considers it proven that the taxpayer worked as a civil servant in the British Ministry of Commerce and Industry, so the pension is public.
Furthermore, it makes it clear that it is not reasonable to force a citizen to resolve problems between countries. If you have already paid taxes abroad, the Treasury should limit itself to verifying it, without requiring procedures outside of Spain.
The court annuls the debt with the Treasury
For all these reasons, the TSJ of Madrid fully upholds the couple’s appeal and annuls the debt of 48,956.59 euros.
The ruling concludes that the OMT pension should not be taxed in Spain and that the United Kingdom pension cannot be taxed twice. Thus, it corrects the Treasury’s criteria and recognizes the right of taxpayers not to pay those amounts.