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V1331-25 16 July 2025 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · rendimientos del trabajo

40% reduction in temporary regime applicable only once per same pension contingency

The consultant asks whether the 40% reduction in the temporary regime can be applied in multiple partial capital withdrawals across years. The DGT responds that, as all withdrawals stem from the same pension contingency, the reduction can only be applied once.

The question raised

Possibility of making several partial pension plan withdrawals in the form of capital in different tax years, applying the 40 percent reduction provided for in the transitional regime to each of the withdrawals.

The DGT's ruling

Pension plan benefits are considered earned income. The 40% reduction for contributions made until 2006 may only be applied to one of the benefits if they derive from the same contingency. The beneficiary may choose in which tax year to apply said reduction, provided it is done within the period established in the twelfth transitional provision of the Personal Income Tax Law (LIRPF).

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