Skip to content
Back to index
V1603-22 1 July 2022 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · rendimientos del trabajo

Potential application of the 40% pension reduction for serious illness under DT 12 requirements

The inquirer asks whether the 40% reduction can be applied when redeeming a pension plan due to a spouse's serious illness. The DGT clarifies that this reduction applies to contributions made prior to 2007, subject to specific conditions and timeframes.

The question raised

First question. Possibility of applying the 40 percent reduction in the exceptional case of liquidity due to serious illness.

The DGT's ruling

Pension plan benefits are considered earned income. If received as a lump sum, the 40% reduction may be applied to the portion corresponding to contributions made until December 31, 2006, provided that the terms of the twelfth transitional provision of the LIRPF are met. The circumstance of serious illness is deemed to have occurred when the requirements to exercise consolidated rights are met. Retirement is a contingency distinct from serious illness.

Book your free first meeting