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V2573-17 ·10 October 2017 ·consulta-vinculante Medium impact
Tax

Social Security absolute disability pensions are tax-exempt, but life insurance payouts for illness are not

A taxpayer inquired whether both Social Security absolute disability pensions and life insurance payouts are tax-exempt. The DGT ruled that while the pension is exempt, the life insurance benefit is taxable as income from movable capital.

In 6 key points

How it affects those involved

Taxpayers receiving disability benefits must distinguish between state pensions, which are exempt, and private insurance payouts, which are subject to taxation as movable capital income.

Lifecycle

2017-10-10PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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