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V0214-24 27 February 2024 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · contingencia de jubilación

Retirement contingency for the 40% reduction depends on retirement timing or restoration of full pension payments

The inquirer asks when the retirement contingency occurs for applying the 40% reduction based on contributions made prior to 2007. The DGT rules that the contingency occurs upon initial retirement or, in cases of active retirement, when the full pension payment is restored.

The question raised

For the purposes of applying the 40 percent reduction provided for in the transitional regime, when is the retirement contingency considered to have occurred.

The DGT's ruling

The retirement contingency occurs, as a general rule, at the time of accessing initial retirement according to the Social Security regime. If an active retirement situation exists where a reduced amount is received, the contingency shall be understood to have occurred when the full payment of the Social Security pension is restored. To apply the 40 percent reduction on contributions made until 2006, more than two years must have elapsed since the first contribution and the benefit must be received within the timeframes set forth in the twelfth transitional provision.

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