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V3210-23 12 December 2023 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · plan de pensiones

Pension plan benefits received as life annuities are taxed as employment income

A retiree enquires about the taxation of their pension plan if they choose to receive it as a life annuity. The DGT clarifies that these benefits are classified as employment income.

The question raised

1. Taxation of the benefit received from the pension plan in the form of a life annuity.

The DGT's ruling

Pension plan benefits are considered, in all cases, income from employment. Therefore, they must be included in the general taxable base of the recipient's Personal Income Tax. These amounts are subject to withholding in accordance with Personal Income Tax regulations.

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