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V2235-25 24 November 2025 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · rendimientos del capital mobiliario

Life insurance payout for absolute and permanent disability treated as capital gains

A person receives a life insurance payment after being declared absolutely and permanently incapacitated. The DGT determines that, as the beneficiary is the policyholder herself, the exception in Article 40 of the law does not apply, and the income must be taxed as capital gains.

The question raised

Taxation of the benefit received in Personal Income Tax (IRPF). In particular, the possible application of the fortieth additional provision of the Personal Income Tax Law.

The DGT's ruling

The fortieth additional provision of the Personal Income Tax Law (LIRPF) is not applicable because the beneficiary is the applicant herself and not the mortgage creditor. The benefit received is considered full return on movable capital, determined by the difference between the capital received and the premiums paid. These returns constitute savings income and are included in the savings tax base.

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