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V2602-21 ·27 October 2021 ·consulta-vinculante Medium impact
Tax

Cancelling a mortgage debt through life insurance may trigger capital gains tax

An individual has enquired whether receiving life insurance proceeds following a spouse's death, intended to repay a joint mortgage, is subject to Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) clarifies that taxation depends on whether the repayment applies solely to the deceased's portion of the debt or also to the claimant's share.

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2021-10-27PublishedPublished 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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