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V2067-17 2 August 2017 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · rendimientos del capital mobiliario

Life insurance payouts due to disability are taxed as income from movable capital

A taxpayer queried how to tax capital received from a life insurance policy following a permanent disability. The DGT ruled that this constitutes income from movable capital and must be attributed to the tax year in which the court ruling establishing the right becomes final.

The question raised

Taxation of the capital received.

The DGT's ruling

Benefits from insurance contracts that generate returns on movable capital are included in the savings tax base. The return is determined by the difference between the capital received and the premiums paid during the coverage period. The temporal imputation is made in the period in which the benefit becomes due or, if there is a pending judicial resolution, in the fiscal year in which it becomes final.

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