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V2317-25 27 November 2025 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · rendimientos del trabajo

40% reduction for prior contributions can apply only once per contingency

A person who retired in 2024 and has pre-2007 contributions asks whether the 40% reduction can be applied to two separate partial withdrawals. The DGT responds that the reduction can only be applied to one of the benefits from the same contingency.

The question raised

Possibility of applying the 40 percent reduction provided for in the transitional regime.

The DGT's ruling

Pension plan benefits are considered earned income. The 40% reduction may be applied to the portion of the benefit corresponding to contributions made until December 31, 2006, provided that it is received as a lump sum and within the period established by the twelfth transitional provision. However, as these are redemptions derived from the same retirement contingency, the reduction may only be applied to one of the benefits. The taxpayer may choose in which tax year to apply said reduction within the legal period.

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