Skip to content
Back to index
V2910-15 7 October 2015 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · renta vitalicia

The exemption for reinvestment in a life annuity cannot be applied to pension plan benefits

A taxpayer over 65 years of age inquires whether they can exclude the capital from their pension plans from taxation if it is reinvested in a life annuity. The DGT responds that this is not possible because such benefits are taxed as income from employment and not as capital gains.

The question raised

Possibility of applying the tax exclusion for reinvestment in life annuities provided for in Article 38, paragraph 3 of the Personal Income Tax Law.

The DGT's ruling

The tax exclusion for reinvestment in a life annuity applies to capital gains derived from the transfer of assets. Since pension plan benefits are considered income from employment pursuant to Article 17.2.a).3 of Law 35/2006, this exclusion provision is not applicable.

Book your free first meeting