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V2028-22 21 September 2022 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · ganancia patrimonial

Reinvestment exemption for life annuities must meet the six-month deadline from the date of transfer

A taxpayer over 65 inquired whether the exemption for reinvestment in life annuities could be applied to the portion of the gain corresponding to deferred payments. The Directorate General for Taxes (DGT) ruled that the annuity must be established within six months of the transfer, without making exceptions for deferred payments.

The question raised

Whether the capital gain that proportionally corresponds to the deferred payments may qualify for the exemption for reinvestment in life annuities, as provided in Article 38.3 of Law 35/2006.

The DGT's ruling

To apply the exemption provided in Article 38.3 of Law 35/2006, the life annuity must be established within six months from the date of the transfer of the asset. This period is not extended by the fact that the collection of the transfer price is carried out on a deferred basis. An extension of the period only exists for the amount of the withholding tax when the gain is subject to it.

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