Skip to content
Back to index
V0864-18 28 March 2018 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ISD · unit linked

Survival benefits in Unit Linked Mixed Life insurance are subject to IHT and Gift Tax

A query was raised regarding whether the payment of a survival benefit in a Unit Linked insurance policy (Mixed Life modality), where the policyholder is different from the beneficiary, is subject to Inheritance and Gift Tax. The Directorate General for Taxes (DGT) ruled that it is subject to the tax, as it constitutes a gratuitous increase in wealth.

The question raised

A series of questions are raised regarding the ISD in the event that, upon the maturity of the 'Unit Linked' life insurance of the Mixed Life modality as described, the insured has survived, and therefore the payment of the survival benefit is due to the beneficiary by the Insurer:

The DGT's ruling

The receipt of the survival benefit by a natural person beneficiary is subject to the ISD as it constitutes a gratuitous increase in wealth. It is a gratuitous 'inter vivos' legal transaction regulated in Article 3.1.b) of the LISD. The tax accrues at the moment of the occurrence of the contingency that gives rise to the benefit.

Book your free first meeting