Skip to content
Back to index
V3163-19 13 November 2019 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · planes de pensiones

The 40 per cent reduction for retirement can only be applied within a single tax year

The inquirer asks whether they can apply the 40 per cent reduction for a second time when redeeming their pension plan for retirement, having previously used said reduction due to unemployment. The DGT rules that for contributions made up to 2006, the reduction can only be applied once within the same tax period.

The question raised

Possibility of applying the 40 percent reduction for a second time in the 2019 fiscal year.

The DGT's ruling

The 40 percent reduction may only be granted to amounts received as a lump sum within the same tax period, for the portion corresponding to contributions made up to December 31, 2006. Regardless of the number of pension plans held by the taxpayer, the reduction may only be applied once in a single year. If the reduction has already been applied due to a contingency, it may not be applied subsequently for the same contingency.

Book your free first meeting