Skip to content
Back to index
V0205-24 26 February 2024 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · rendimientos del trabajo

Civil servant's retirement occurs upon reaching definitive retirement for pension plan purposes

A civil servant with contributions made prior to 2007 has requested clarification on when their retirement contingency occurs and the timeframe for the 40% reduction. The DGT indicates that retirement takes place upon reaching definitive retirement and that the period for the reduction depends on the year in which the contingency occurs.

The question raised

Possibility of redeeming the pension plan before accessing retirement and the available period to apply the 40 percent reduction provided for in the transitional regime.

The DGT's ruling

Pension plan benefits are considered earned income. In the case of civil servants in active service, retirement is understood to have occurred on the date of access to definitive retirement. The 40% reduction for contributions made prior to 2007 is applicable if received as a lump sum and within the period of the two fiscal years following the occurrence of the contingency. If the contingency occurs in 2028, the period for applying the transitional regime would end on December 31, 2030.

Book your free first meeting