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V1567-24 26 June 2024 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · ganancia patrimonial

Insurance payouts for illness taxed as capital gains for Income Tax purposes

An insured individual received a benefit following the diagnosis of an illness covered by their policy. The DGT has ruled that this payment does not constitute income from movable capital, but rather a capital gain.

The question raised

Taxation of the insurance benefit in Personal Income Tax.

The DGT's ruling

The benefit for diagnosis of illness is not considered income from movable capital pursuant to Article 25.3.a) of the Personal Income Tax Law (LIRPF). It is classified as a capital gain in accordance with Article 33.1 of the LIRPF. The gain is calculated by subtracting from the benefit the amount of the premium paid that gave rise to it. The result must be included in the general taxable base.

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