Question re Whether U.S. VA Disability Pay is Taxable in Spain

katherman69 Member

Member since 31 March 2024

katherman69MemberYesterday 15:17:18

Greetings all:

Are there any U.S. military retirees with a VA Disability rating and receiving pay while living more than 183 days in Spain?聽 My wife and I look to move to either Santander or Tarragon in 2027, but I need to know whether VA Disability pay is considered taxable income by Agencia Tributaria.聽 I will engage a Spanish attorney, if necessary; however, in anyone has first-hand experience with this, I would greatly appreciate any information.聽 I have read the on-point legal/regulatory documents, and Agencia Tributaria states that residents must declare all worldwide income, but disability鈥憆elated income can be non鈥憈axable if it fits the categories defined in Spanish law.聽 The exception I am looking at is "Benefits or incomes related with situations of disability which are not subject to Personal Income Tax."聽 Thank you in advance for your assistance. SFK

SimCityAT Expert

Member since 08 April 2014

SimCityATExpertYesterday 15:45:17

13211

Your VA disability is likely considered taxable by Spain unless you can successfully argue for an exemption by equating it to a local Spanish disability pension, so professional tax guidance is strongly recommended.