As the 2026 Income Tax campaign approaches, many Canarian pensioners, particularly in Tenerife, are wondering whether they will need to complete this tax procedure. Contrary to popular belief, a significant portion of pension beneficiaries is exempt from this obligation, according to guidelines set by the Tax Agency.
Pensions are considered employment income for Personal Income Tax (IRPF) purposes. However, tax regulations include several exceptions that release certain retirees from annual filing. Among the groups that are not required to declare under any circumstances, provided they only receive these benefits, are pensions for absolute permanent disability or severe disability recognized by the Social Security or the Passive Classes regime.
Also exempt are orphan's pensions, pensions for family members in specific situations, those derived from acts of terrorism or exceptional circumstances, and old-age assistance pensions for Spaniards abroad or returnees, regulated by Royal Decree 8/2008. In these cases, since they are not taxable, there is no obligation to declare, regardless of the amount received.
Pensions are taxed as employment income, just like a salary. That is, for IRPF purposes, a pensioner is in the same situation as an active worker. However, the regulations include clear exceptions that allow many to avoid this annual procedure.
For other pensioners, the obligation to declare depends on annual income and the number of payers. If only one pension is received, the limit for not declaring is set at 22,000 gross euros annually. However, if there are two or more payers, such as a public pension and a private plan, the threshold decreases to 15,876 euros annually, provided the second payer exceeds 1,500 euros per year.
It is crucial to note that common situations such as the redemption of a pension plan, receiving a foreign pension, combining a pension with work in the same year, or income from mutual societies or insurance, are considered second payers. An important exception is if two public pensions are received from the same body, such as retirement and widow's pensions from the INSS, as the Tax Agency considers this a single payer.
Furthermore, a pensioner might be obliged to declare if, despite their pension being below the limits, they have obtained other significant income. This includes exceeding 1,000 euros annually in bank interest, investments, property rentals, public subsidies, or capital gains. In these scenarios, the Tax Agency requires all such income to be included in the declaration.
Although many pensioners are not obliged to declare, experts always advise reviewing the draft. If higher retentions than appropriate were applied during the year, the declaration could result in a refund, allowing that money to be recovered through voluntary filing.
