Back to index
V2774-23 10 October 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · clases pasivas

Civil service pensions are exempt if worsening illness causes absolute incapacity before compulsory retirement

A civil service pensioner enquired whether a supplementary pension resulting from a worsening illness was exempt from Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) ruled that it is exempt, as the requirements for total incapacity for all professions have been met.

The question raised

Whether the pension received is exempt from IRPF taxation, pursuant to the provisions of Article 7.g) of the LIRPF.

The DGT's ruling

Passive class pensions for invalidity or permanent disability are exempt if the injury or illness completely disables the recipient from any profession or trade. According to the TEAC criterion, this exemption applies whether the disability occurs at the time of retirement or arises subsequently due to the worsening of the illness, provided it occurs before the age of compulsory retirement. In this case, as an absolute incapacity for all work is recognized following the worsening, the requirements of Article 7.g) of the LIRPF are met.

Book your free first meeting