The Germany–Spain double tax treaty for owners and residents

Who taxes what

Income	Resident in Spain	Resident in Germany, owning in Spain
German statutory pension (Rente)	Spain, with German taxation possible under the treaty and credit	Germany
German civil servant pension (Beamtenpension)	Generally Germany	Germany
Rent from Spanish property	Spain	Spain at 19% net; Germany under the treaty
Gain on Spanish property	Spain	Spain at 19%; Germany under the treaty
German rental income	Germany can tax; Spain under the treaty	Germany

German owners living in Germany

As EU residents, they pay 19% on net rental income in Spain, with deductible expenses, and file imputed income for the days the home is not rented. How the Spanish income then counts in Germany follows the treaty and German rules; we coordinate with the German Steuerberater so the figures match. See rental income for non-residents.

German pensioners in Mallorca

Pensioners living in the Balearics declare their pensions in Spain. German statutory pensions can also be subject to limited German taxation under the treaty, with the corresponding credit in Spain. Civil servant pensions are generally taxed in Germany only. See pension tax.

Dual residence

Many Germans keep a home in Germany and spend long periods in the islands. If both countries claim residence, the treaty looks at the permanent home, the centre of vital interests and habitual abode. See tax residence in Spain.

Planning a move

German exit rules on shareholdings and the timing of the move matter. See moving to Spain.

An illustrative example

Based on situations we commonly see; not a specific client. A German couple from Hamburg retired to Mallorca with a statutory pension each and a rented flat in Germany. We declared the pensions and the German rent in Spain with the credits the treaty allows, coordinating with their German adviser so neither country taxed the same income twice.

How Castell.tax can help

We plan moves to the Balearic Islands before they happen: residence date, the Beckham regime, pensions, investments and assets abroad, coordinating with your adviser at home. Then we file your first Spanish returns. See our moving to Spain service or contact us for a planning meeting in English or German.

This page is published by Castell.tax, the tax practice of Castell.law in Palma de Mallorca. It is general information; tax rules and rates change, so check your case with us before filing.