Doctrine by topic · DGT Observatory

Capital at Risk: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

← DGT Observatory

How the DGT's position has evolved

Refined position High confidence 14 rulings · 2016–2026

Current position

The return on movable capital is calculated as the difference between the capital received and the premiums paid. If the contract combines survival with death or disability, it is possible to deduct the portion of the premiums corresponding to the capital at risk, provided that this is equal to or less than 5% of the mathematical provision throughout the entire term. The insurance entity must apply the corresponding withholding tax on the resulting amount.

The position has moved from treating the risk premium as income in kind from employment to allowing its deduction from the return on movable capital. Initially, the DGT required the imputation of the risk portion as income in kind, but the most recent rulings consolidate the possibility of deducting said portion if it does not exceed 5% of the mathematical provision.

Turning points

  1. V1904-20

    Introduces the possibility of deducting the portion of the premiums corresponding to the capital at risk if it is equal to or less than 5% of the mathematical provision.

  2. V1431-23

    Specifies that the 5% limit of the mathematical provision must be met throughout the entire term of the contract.

Analysis based on 14 of 14 rulings with a stated position. Updated 26 September 2026.

Rulings on this topic

14
V1566-23 6 Jun 2023

Annual renewable life insurance benefits are taxed as income from movable capital

SG de Tributación de las Operaciones Financieras
rendimientos del capital mobiliarioseguro de vidabase imponible del ahorroseguro anual renovablecompromisos por pensiones LIRPF — Ley 35/2006 del IRPF art. 17.2.aLIRPF — Ley 35/2006 del IRPF art. 25.3.a
Affects CompanyExpat · Non-residentIndividual
V1904-20 11 Jun 2020

Determination of returns on movable capital in life insurance

SG de Tributación de las Operaciones Financieras
rendimientos del capital mobiliariocontrato de seguro de vidacapital en riesgoprovisión matemáticabase imponible del ahorro LIRPF — Ley 35/2006 del IRPF art. 25.3LIRPF — Ley 35/2006 del IRPF art. 17.2.a
Affects CompanyExpat · Non-residentIndividual
V1658-17 27 Jun 2017

Company-paid life insurance premiums constitute benefits in kind

SG de Tributación de las Operaciones Financieras
rendimientos del trabajoimputación fiscalseguro de riesgocapital en riesgoprovisión matemática LIRPF — Ley 35/2006 del IRPF art. 17.1.fLGT — Ley 58/2003 General Tributaria art. 89.1
Affects CompanyExpat · Non-residentIndividual

Apply this to your case

Beckham Law & impatriate taxationTalk to the team applying this doctrine daily.
IRPF Spain 2026 CalculatorEstimate the impact on your case in two minutes.
Talk to the tax teamWe check whether this criterion affects you and what it means in your situation.
Email
Contact