Skip to content
Back to index
V2790-21 15 November 2021 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · seguro de vida mixto

Mixed life insurance benefits taxed as income from movable capital if policyholder position is transferred free of charge

Consultants inquired about the taxation of mixed life insurance payouts following a policyholder's renunciation of their status as beneficiary. The DGT ruled that if such renunciation constitutes a free transfer of the policyholder's position, the benefits shall be taxed under Personal Income Tax (IRPF).

The question raised

Taxation of the difference between the capital to be received by the applicants and the capital upon which tax was paid in the Inheritance and Gift Tax.

The DGT's ruling

If the policyholder's waiver constitutes a gratuitous transfer of their legal position to the beneficiaries, the life insurance benefits shall be taxed under Personal Income Tax (IRPF) pursuant to Article 25.3 of the Personal Income Tax Law (LIRPF). The return on movable capital shall be the difference between the capital received and the value of the transfer (which acts as the premium paid). This return shall be included in the savings tax base.

Book your free first meeting