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V2648-24 ·26 December 2024 ·consulta-vinculante Medium impact
Tax

The 40% reduction can only be applied to one lump-sum withdrawal per retirement contingency

A taxpayer inquired whether the 40% reduction for contributions made prior to 2007 could be applied to two separate partial withdrawals from the same pension plan in different years. The Directorate General for Tax Affairs (DGT) ruled that the reduction may only be applied once per contingency, although the taxpayer may choose which tax year to exercise this right within the legal timeframe.

In 6 key points

How it affects those involved

This ruling clarifies that the tax benefit for pre-2007 contributions is a single-use entitlement per retirement event, preventing taxpayers from splitting a single retirement contingency into multiple withdrawals to claim the reduction repeatedly.

Lifecycle

2024-12-26PublishedPublished 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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