Subject: ARICSA E-News 18/08/2025 - to Austrian residents
Date: 18. August 2025 at 16:48:31 CEST
Austrian Taxes on UNJSPF Income
In the last two years the Austrian Finance Ministry has introduced two taxation regulations that could affect retirees. If you have been personally affected by these regulations, or know someone who has, please contact us to help us. We believe that these regulations do not align with the UN-Austrian agreements.
The two regulations are:
- the use of UNJSPF benefits to establish the tax rate on other world-wide income. Austria has the right to tax the global income of a UN system retiree resident in Austria. As of 2024, the UNJSPF benefit amounts are to be considered in the determination of the tax rate that is to be applied to the taxable income in Austria.
- Taxation of UNJSPF pension of surviving spouses. In 2024 the Austrian Ministry of Finance announced that benefits that widows and widowers receive from the UNJSPF are not exempt from income tax.
We in ARICSA do not agree with these new interpretations of Section 26 of the UN-Austria Headquarters Agreement which states "Benefits received from the Pension Fund shall be exempt from taxation".
We are in contact with the UNOV Legal Office and Protocol Office and are preparing the documentation to support our stance not only as a matter of principle but also with specific personal impacts.
Any personal documentation that you can provide will help all those affected. Thank you.
Jerry Barton, ARICSA President
president@aricsa.org
_______________
Association of Retired International Civil Servants in Austria (ARICSA)
P.O. Box 100 Room C0249B
Vienna International Centre
A-1400 Vienna, Austria
tel: +43 1 2600 26116
email: office@aricsa.org
www.aricsa.org
Summary and Analysis
Austria – new tax practice on UNJSPF pensions (contested)
ARICSA (the Association of Retired International Civil Servants in Austria) has informed its members that the Austrian Ministry of Finance has introduced two new interpretations affecting UNJSPF beneficiaries resident in Austria.
First, from 2024 the Ministry intends to include the amount of the UNJSPF pension when calculating the income tax rate on other taxable income in Austria (so-called “exemption with progression”), even though the pension itself remains formally tax-exempt under the UN–Austria host country agreements.
Second, the Ministry now considers that surviving spouses’ pensions paid by UNJSPF are not covered by the exemption and should be taxed as ordinary income in Austria.
ARICSA believes both measures conflict with Section 26 of the UN–Austria Headquarters Agreement, which states that “benefits received from the Pension Fund shall be exempt from taxation,” and is pursuing the matter with the UNOV Legal and Protocol Offices. Anyone already affected is encouraged to contact ARICSA (president@aricsa.org) and to seek advice from a qualified Austrian tax adviser.
In short: the casual claim that “all UN income is now taxable in Austria” is incorrect. The real issue is these two specific interpretations, both of which are being contested and are not yet resolved.
These changes are similar to those Spain enacted a few years back, resulting in about one-third of the pension being paid in tax. Considering the benefits of living in a nice and pleasant place with low crime rates and excellent climate, it is fair and well worth it even if you do not benefit from the state-provided healthcare.
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