Skip to content
Back to index
V0895-24 23 April 2024 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · plan de previsión asegurado

Conditions for applying the 40% reduction to insured pension plan benefits

The taxpayer inquired whether the 40% reduction under the transitional regime could be applied to benefits from an insured pension plan. The Directorate General for Taxes (DGT) ruled that, since the retirement event occurred in 2014, the deadline to receive benefits entitled to said reduction expired on 31 December 2022.

The question raised

Possibility of applying the 40 percent reduction provided for in the transitional regime.

The DGT's ruling

Benefits from insured pension plans are considered earned income. If received as a lump sum, the 40% reduction may be applied to the portion corresponding to contributions made until December 31, 2006, provided that two years have elapsed since the first contribution and they are received within the period established by the twelfth transitional provision. For contingencies occurring in 2014, said period ended on December 31, 2022.

Book your free first meeting