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V1408-19 12 June 2019 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · ganancia patrimonial

Exemption for reinvestment in life annuities may apply if legal requirements are met

A 70-year-old taxpayer inquires whether they can apply for the reinvestment exemption in life annuities following the sale of some land. The DGT explains the requirements set out in the Personal Income Tax Law and the Regulations to access this benefit.

The question raised

Possibility of applying the exemption for reinvestment in life annuities, provided for in Article 38.3 of Law 35/2006, to the capital gain corresponding to said amount

The DGT's ruling

Individuals over 65 years of age may exclude from taxation capital gains arising from the transfer of assets if the total amount is allocated to the establishment of an insured life annuity within six months. The maximum reinvestment limit is 240,000 euros. If the contract is entered into on or after April 1, 2019, the requirements of the ninth additional provision of the Regulation regarding reversion mechanisms, certain periods, or counter-insurance formulas must be met.

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