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V1570-25 3 September 2025 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · ganancia patrimonial

Capital gains from property transfer exempt if reinvested in lifetime income

A taxpayer over 65 enquires about the conditions for exempting reinvestment of property sale proceeds into a lifetime income. The DGT explains that the requirements set out in law and regulations, including time limits, amount thresholds, periodicity and reversal conditions, must be met.

The question raised

Requirements for applying the exemption for reinvestment in life annuities.

The DGT's ruling

For the exemption, the amount obtained must be allocated within six months to an insured life annuity, with a limit of 240,000 euros. The contract must be entered into with an insurance entity, have an annual or shorter periodicity, and the annuities may not decrease by more than 5% annually. If reversion mechanisms, certain periods, or counter-insurance exist, the limits of the ninth additional provision of the RIRPF must be respected.

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