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V2334-25 2 December 2025 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · rendimientos del trabajo

40% reduction possible on pension plan withdrawals under transitional regime

The consultant asks whether a 40% reduction under the transitional regime applies when withdrawing from a pension plan after early retirement. The DGT clarifies that the reduction applies to contributions made up to 2006 if withdrawn as capital within the established timeframes.

The question raised

Possibility of redeeming another pension plan by applying the 40 percent reduction provided for in the transitional regime.

The DGT's ruling

Pension plan benefits are considered earned income. If received as a lump sum, a 40% reduction may be applied to the portion corresponding to contributions made until December 31, 2006, provided that more than two years have elapsed since the first contribution and the benefit is received within the period established by the twelfth transitional provision. In the case of multiple plans, the reduction may be applied to the lump-sum benefit of each plan individually. For contingencies occurring in 2023, the period for applying this regime expires on December 31, 2025.

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