Tax on income from Canadian tax-sheltered accounts?

Hello everyone. We are Canadians looking to retire in Spain.
Whether or not we can retire there will depend on the amount of tax we will have to pay in Spain.
Can anyone tell me if you must report income from Canadian tax sheltered accounts (RSP, TFSA) on your Spanish tax return?
If so, does the Canada-Spain tax treaty cover tax sheltered accounts so the income reported is not taxable in Spain?

Thank you,

I suggest you read the double taxation
Agreement between spain and Canada

I quite often use the one between U.K. and spain, which I am reasonably familiar with,  to resolve questions

Thank you Johncar but if the treaty does not contain that information.
TFSA accounts are a new type of savings vehicle that was introduced after the signing of the treaty.

I just had a very quick look at the savings you mention.   It appears they are similar to
Tax free ISI accounts in U.K.   income from those is taxable in spain, despite that they are not  specifically mentioned in agreement between U.K. and Spain.   

I would think if you ask a gestor or similar in
Spain, they have a designated helpline with AEAT (Hacienda )  or a lawyer / fiscal professional in Canada, you should get the advice you require

Good luck

The only income that I currently report on Spanish Taxes is the rental income from my property. I do not report any income NOT generated in Spain. I do have to declare my property in Spain as a foreign owned property and can also deduct all my expenses from the property (hydro, community fees, improvements etc) on my Canadian tax return. Please keep in mind that I do not live in Spain full time as of yet.

Kat,    What you posted is what the law in Spain stipulates but it does not answer Marina's question. 

Come on,  there must be some Canadians out there who know !

I use an accountant for my Spanish taxes (US citizen with Spanish residence).  Twice in the last 3 years something has come up that would involve a reduction in taxes; once it was an adjustment to my US taxes which should have resulted in lowering my Spain axes.  The other one was treatment of capital losses, which would have also resulted in lowering my Spain taxes.  In both cases, the accountant recommended against submitting amendments to realize these reductions.
On the capital losses, he said "you can't claim capital losses".  Which is interesting, as I had claimed capital gains.  To me it appears that there is a lot of "Interpretation" in Spanish tax law, and it usually goes against you.  So the fact that tax sheltered instruments are not specifically mentioned in the tax treaty just opens their treatment up to "Interpretation"  And that can easily go the wrong way


As a former U.K. fraud dept detective and with 30 years experience living in spain,  what you describe are many of the so called professionals in spain, who have a general level of incompetence, nothing to do with Hacienda.

If the law says one is entitled to a claim then that is the law.  It requires no interpretation just a competent understanding.  I am reluctant say that but it is true.

I have been told by several tax people in Spain that the reason I cannot claim expenses for my property in Spain is because being from Canada does not give me the same benefit as an resident of the EU.
I am now in the process of applying for a Non-Lucrative visa and will have to further investigate how this will affect my Spanish tax situation. I currently have to provide proof to the CRA that I have indeed, paid taxes in Spain.

JuanCar:  I believe you are correct.  Incompetence is common, unfortunately

Hi we moved from Canada in 2007 and have to pay tax and declare our RRSP's on a Modelo 720.
I fought that it is in effect a pension that we pay tax on withdrawals but they see it as an investment.

The  modelo 720 is the declaration by Spanish taxpayers, of one's wealth which is held outside Spain.    So maybe a house in Canada.  It is required when the wealth exceeds 50,000 euros in each of three categories:  bank accounts, investments and immovable property.

If that amount is exceeded in a category, then all the amounts held in that category must be reported, even if they are very small.    It also then includes disposals of assets. The Declaration must be made by 31st March for the previous year Jan to Dec.

It does not in itself mean you will pay any more tax.  Unless you then drop into the Patrimonio tax obligation

If you have such assets I would suggest you do not fail to make the declaration.  The fine for not doing so is 5,000 euros on each items not declared with a minimum of 10,000   Plus  a penalty of up to 150% of the asset not declared.  There is a court cases pending in Europe on the grounds that the penalties are too high

Thank you, yes I understand what it is, I just felt at the time that it should be viewed as a pension not an investment. Anyway filed along time ago and better safer than sorry I these matters.

Of course all income from assets must be declared.

Can I ask what your residence status is in Spain? Do you live in Spain full time?

Yes I have had residencia for 10 years.

I am not a resident and just applied for a Non-Lucrative visa.
Do you know if these regulations apply for this status?

I am sorry I don't.
As with everything here always better to consult qualified advisers, not take forum advice.

I will be doing that. I have a few couple of people who are qualified to give take advice

Abowen is of course correct but there are some people posting here who have been appointed as experts by the forum.

Was anyone ever able to confirm this?

I have RRSP GICs accruing interest.

I understand I need to declare them on Modelo 720 but am unclear if I need to pay tax on the interesti receive each year or only when they're withdrawn?

I know they're subject to Canadian withholding tax but am still unclear how Spain treats them.