Skip to content
Back to index
V2253-14 3 September 2014 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · rendimientos del capital mobiliario

Life insurance return calculated by deducting premiums from the received capital

A person enquired about the tax treatment of the capital received upon the maturity of a life insurance policy taken out in 1994. The DGT explains that the return is the difference between the capital received and the premiums paid, and outlines the applicable reduction regime.

The question raised

Taxation of the capital received in Personal Income Tax.

The DGT's ruling

The return on movable capital is the difference between the capital received and the amount of premiums paid. For premiums paid before December 31, 1994, a reduction is applied according to the fourth transitional provision of Law 35/2006. This return is included in the savings tax base. The insurance entity must apply the withholding tax on the calculated and reduced return.

Free assessment and quote