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V0459-21 3 March 2021 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · indemnización

Disability payouts from life insurance policies covering illness are not exempt from Income Tax

A query was raised regarding whether disability payouts for absolute and permanent disability from an annually renewable life insurance policy are exempt from Income Tax (IRPF). The Directorate General for Taxes (DGT) ruled that the exemption does not apply because it is a life insurance policy rather than an accident insurance policy; therefore, it must be taxed as income from movable capital.

The question raised

Tributación del capital que perciba en caso de invalidez permanente absoluta. En particular, si sería de aplicación la exención contemplada en el artículo 7.d) de la Ley del Impuesto sobre la Renta de las Personas Físicas.

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