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V2368-25 4 December 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

30% reduction possible on early retirement compensation if paid as capital

The consultant asks whether compensation from a mutual agreement termination can benefit from a 30% reduction if paid as a lump sum. The DGT confirms that yes, as it constitutes a clearly irregular income stream.

The question raised

Whether the 30 percent reduction provided for in Article 18.2 of the LIRPF is applicable to the compensation in the event that it is received in the form of capital.

The DGT's ruling

The amounts paid by the company for the mutual agreement termination of the employment relationship are considered employment income obtained in a notoriously irregular manner over time. If such compensation is received in the form of capital, the requirement of imputation in a single tax period is met, allowing for the application of the 30 percent reduction provided in Article 18.2 of the LIRPF. This reduction is subject to an annual limit of 300,000 euros.

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