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V0371-26 20 February 2026 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · entidad de previsión social voluntaria

Reduction of 40% not applicable if EPSV benefits are received as income

A taxpayer asks whether the transitional regime of the LIRPF applies to withdrawing an annual 10% from an EPSV. The DGT responds that such reduction only applies if benefits are received as capital.

The question raised

Question posed: Possibility of applying the transitional regime provided for in the twelfth transitional provision of the Personal Income Tax Law.

The DGT's ruling

Benefits from voluntary social welfare entities are taxed as income from employment. The 40% reduction provided for in the twelfth transitional provision of the Personal Income Tax Law (LIRPF) for contributions made until 2006 is only applicable if the benefits are received as a lump sum. If the redemption is carried out in the form of an annuity, the application of said transitional regime is not permitted.

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