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V1421-24 13 June 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · pensión no contributiva

Non-contributory disability pensions may be exempt if the requirement of severe disability is met

A query was raised regarding whether a non-contributory disability pension, including a third-party assistance supplement, is exempt from Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) indicates that while these pensions are generally taxable, an exemption applies to benefits for absolute permanent incapacity or severe disability.

The question raised

Whether the pension received is exempt from Personal Income Tax (IRPF).

The DGT's ruling

Non-contributory Social Security pensions are earned income subject to taxation. However, Article 7.f) of the Personal Income Tax Law (LIRPF) establishes the exemption of benefits for absolute permanent disability or severe invalidity. Therefore, if the pension meets the requirements for severe invalidity, it could be exempt from taxation.

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