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V1735-22 20 July 2022 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
IP · derechos consolidados

Foreign pension plans only exempt from Wealth Tax if specific requirements are met or if they are pan-European products

A resident in Spain has enquired whether rights held in a pension plan established in Malta are exempt from Wealth Tax. The DGT has ruled that the general exemption for pension plans does not apply if they do not comply with Spanish regulations or the rules for occupational funds in other Member States, unless they constitute a pan-European individual pension product.

The question raised

Whether the economic rights of the beneficiaries and the consolidated rights of the participants in the pension plan mentioned in the description of the facts are exempt from Wealth Tax pursuant to Article 4. Five of Law 19/1991, of June 6, on Wealth Tax, specifically following the incorporation of the new exemption provided in paragraph f) of the aforementioned article.

The DGT's ruling

The exemption of consolidated and economic rights in pension plans is limited to those regulated in Chapters I to II of the TRL of the Law on the Regulation of Pension Plans and Funds, or in the second Section of its Chapter X. A pension plan in Malta does not generically meet these requirements. However, if the plan is a pan-European personal pension product regulated by Regulation (EU) 2019/1238, it may benefit from the exemption provided in Article 4.Five.f) of the LIP.

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