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V1251-24 30 May 2024 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · renta vitalicia

Taxation rate for life annuities is determined by age at the time of establishment

A query was made regarding when a deferred life annuity is considered established for the purpose of applying taxation rates. The Directorate General for Tax Assurance (DGT) ruled that establishment occurs when the insurer is obliged to pay the benefits.

The question raised

Date of establishment of the life annuity, for the purposes of applying the taxation percentages provided for in Article 25.3.a) of Law 35/2006.

The DGT's ruling

The percentage applicable to each annuity depends on the age of the annuitant at the time of the establishment of the income and remains invariable. For deferred annuities, the establishment occurs at the moment when the insurance entity becomes obligated to pay the benefits as contracted.

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