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V2931-17 15 November 2017 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · ganancia patrimonial

Cancellation of mortgage debt via life insurance classified as capital gain rather than insurance income

A query was made regarding the tax treatment of a life insurance benefit used to cancel a mortgage debt following the policyholder's death. The DGT has determined that the debt cancellation does not constitute insurance income, but rather a capital gain exempt due to death.

The question raised

Tax treatment of the benefit derived from the insurance.

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