Persons with tax residence in Spain are obliged to declare their world income what income tax refers to. Therefore, income or pension funds received from Germany are subject to taxation and inclusion in the yearly income tax return.
At the beginning of 2015, the Spanish government “permitted“ to declare all that income which had not been declared previously, without charging any default interests or fines. However, this tax amnesty was abolished on 1st July 2015, meaning that the Tax Authorities that dispose of the corresponding information are now entitled to claim for the unpaid sums, applying a penalty of at least 50% (with a maximum of 300%), from all those tax-payers who do not include their income obtained from abroad in their yearly income tax return.
We should be glad to also assist you on this issue, should any of your friends or clients find themselves in such a situation.