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V0157-26 27 January 2026 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · rendimientos del trabajo

40% reduction possible on pension plans if taken before 2028

The taxpayer has pension plans with contributions prior to 2007 and suffered a permanent disability in 2025. Tax authorities confirm a 40% reduction may apply to contributions made up to 2006 if the capital is received before the legal deadline.

The question raised

Possibility of applying the 40 percent reduction provided for in the transitional regime.

The DGT's ruling

Pension plan benefits are considered earned income. The 40% reduction may be applied to the portion of the benefit corresponding to contributions made until December 31, 2006, provided that it is received as a lump sum and within the period established by the twelfth transitional provision. For a contingency occurring in 2025, the period for applying this final transitional regime expires on December 31, 2027.

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