Back to index
V1867-17 14 July 2017 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · planes de previsión asegurados

40% tax reduction applicable to lump-sum payments from insured pension plans

A query was raised regarding whether the 40% tax reduction can be applied to benefits from an insured pension plan triggered by death, and what the time limit is. The DGT ruled that it is applicable to the portion of contributions made up to 31 December 2006, subject to specific requirements and deadlines.

The question raised

Possibility of applying the 40 percent reduction to the capital received by plan beneficiaries in the event of death. Time limit for applying said reduction.

The DGT's ruling

Benefits from insured pension plans are considered income from employment. 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 more than two years have elapsed since the first contribution. This reduction can only be applied once within the same tax period. The transitional regime allows for the application of the reduction in the tax year the contingency occurs or in the two following years.

Book your free first meeting