Doctrine by topic · DGT Observatory

Right of Redemption: DGT doctrinal evolution

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

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How the DGT's position has evolved

Settled doctrine High confidence 19 rulings · 2014–2026

Current position

The transfer of rights from a collective pension insurance policy is not subject to IRPF (Personal Income Tax) if the amount is allocated to another collective insurance policy that implements pension commitments pursuant to the first additional provision of Law 35/2006. This non-subjectivity is not applicable if the destination is a pension plan or another instrument with a different tax regime. The transfer does not alter the seniority of the premiums from the original contract.

The DGT's position has focused on delimiting the requirements for tax non-subjectivity in the transfer of collective insurance. It has been specified that the destination must strictly be another collective life insurance policy that implements pensions, excluding pension plans or other instruments. The doctrine maintains a restrictive interpretation of the first additional provision of Law 35/2006.

Turning points

8 February 2023 V0200-23

Clarifies that the exemption does not apply if the transfer is destined for a pension plan or another instrument with a tax regime different from that of collective insurance.

Analysis based on 17 of 19 rulings with a stated position. Updated 25 September 2026.

Rulings on this topic

19

V0728-26 30 Mar 2026

Pension insurance mobilisation exempt from IRPF and IS under certain conditions

SG de Tributación de las Operaciones Financieras

compromisos por pensionesseguro colectivoderecho de rescatemovilizaciónrégimen transitorio LIRPF — Ley 35/2006 del IRPF art. disposición adicional primeraLIRPF — Ley 35/2006 del IRPF art. disposición transitoria undécima

Affects CompanyExpat · Non-residentIndividual

V0890-24 23 Apr 2024

Pension plans abroad are not subject to Form 720 if they do not fall within the required categories of assets and rights

SG de Tributos

modelo 720plan de pensionesderecho de rescatecontingenciasobligación informativa LGT — Ley 58/2003 General Tributaria art. disposición adicional decimoctavaLGT — Ley 58/2003 General Tributaria art. 29

Affects CompanyExpat · Non-residentIndividual

V0254-24 29 Feb 2024

Redemption of a life annuity triggers taxation on exempt capital gains and movable capital income

SG de Tributación de las Operaciones Financieras

renta vitaliciaganancia patrimonialexención por reinversiónrendimiento del capital mobiliarioderecho de rescate LIRPF — Ley 35/2006 del IRPF art. 25.3.a.5LIRPF — Ley 35/2006 del IRPF art. 38.3

Affects CompanyExpat · Non-residentIndividual

V0200-23 8 Feb 2023

No IRPF liability if pension insurance surrender is transferred to a pension plan

SG de Tributación de las Operaciones Financieras

seguro colectivocompromisos por pensionesderecho de rescateno sujeciónmovilización de derechos LIRPF — Ley 35/2006 del IRPF art. disposición adicional primeraReal Decreto Legislativo 1/2002

Affects CompanyExpat · Non-residentIndividual

V2476-22 1 Dec 2022

30% tax reduction cannot be applied to capital received from a survival insurance policy

SG de Tributación de las Operaciones Financieras

rendimientos del trabajoseguro de supervivenciareducción del 30%periodo de generaciónderecho de rescate LIRPF — Ley 35/2006 del IRPF art. 17.1LIRPF — Ley 35/2006 del IRPF art. 18.2

Affects CompanyExpat · Non-residentIndividual

V2070-22 27 Sept 2022

Supplementary payments from a social welfare mutual fund are taxable in the year they become due

SG de Tributación de las Operaciones Financieras

rendimientos del trabajoimputación temporalmutualidad de previsión socialderecho de rescateexigibilidad LIRPF — Ley 35/2006 del IRPF art. 17.2.a).4ªLIRPF — Ley 35/2006 del IRPF art. 14.1.a)

Affects CompanyExpat · Non-residentIndividual

V0882-22 26 Apr 2022

No mandatory to declare foreign pension plans without contingencies

SG de Tributos

modelo 720planes de pensionesdeclaración informativacontingenciasderecho de rescate LGT — Ley 58/2003 General Tributaria art. 29LGT — Ley 58/2003 General Tributaria art. 93

Affects CompanyExpat · Non-residentIndividual

V0787-21 5 Apr 2021

Foreign pension rights must be declared in Form 720 if they allow life insurance-style withdrawals

SG de Tributos

residencia fiscalmodelo 720plan de pensionesderecho de rescateseguro de vida LGT — Ley 58/2003 General Tributaria art. disposición adicional decimoctavaRGAT — RD 1065/2007, Reglamento General de Actuaciones Tributarias art. 42 bis

Affects CompanyExpat · Non-residentIndividual

V2503-20 22 Jul 2020

Exemption from Personal Income Tax on collective pension insurance payouts if transferred to another qualifying insurance policy

SG de Tributación de las Operaciones Financieras

seguro colectivocompromisos por pensionesderecho de rescateno sujeciónintegración de compromisos LIRPF — Ley 35/2006 del IRPF art. DA 1Real Decreto Legislativo 1/2002

Affects CompanyExpat · Non-residentIndividual

V0394-19 25 Feb 2019

Exemption from Income Tax does not apply if the destination insurance fails to meet collective pension scheme requirements

SG de Tributación de las Operaciones Financieras

seguro colectivocompromisos por pensionesderecho de rescateno sujeciónrendimientos del trabajo LIRPF — Ley 35/2006 del IRPF art. disposición adicional primeraLIRPF — Ley 35/2006 del IRPF art. 17.2.a.5ª

Affects CompanyExpat · Non-residentIndividual

V2027-18 6 Jul 2018

Life annuities and death benefits taxed via Income Tax or Inheritance Tax depending on policyholder and beneficiary status

SG de Tributación de las Operaciones Financieras

renta vitaliciarendimientos del capital mobiliarioseguro de vidaderecho de rescatehecho imponible LIRPF — Ley 35/2006 del IRPF art. 6.4LIRPF — Ley 35/2006 del IRPF art. 17.2.a

Affects CompanyExpat · Non-residentIndividual

V1098-18 26 Apr 2018

Income from redemption of collective insurance for credit institutions is subject to Corporation Tax

SG de Tributación de las Operaciones Financieras

derecho de rescatecompromisos por pensionesseguro colectivono sujeciónretención LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 19.4Real Decreto Legislativo 1/2002

Affects CompanyExpat · Non-residentIndividual

V0831-17 4 Apr 2017

30% reduction cannot be applied to loyalty bonus payments received as a lump sum

SG de Tributación de las Operaciones Financieras

rendimientos del trabajoreducción del 30 por cientoperiodo de generaciónseguro de fidelizaciónderecho de rescate LIRPF — Ley 35/2006 del IRPF art. 17.1LIRPF — Ley 35/2006 del IRPF art. 18.2

Affects CompanyExpat · Non-residentIndividual

V0830-17 4 Apr 2017

30% tax reduction on insurance payouts cannot be applied if the company retains redemption rights

SG de Tributación de las Operaciones Financieras

rendimientos del trabajoreducción del 30%período de generaciónderecho de rescateseguro LIRPF — Ley 35/2006 del IRPF art. 17.1LIRPF — Ley 35/2006 del IRPF art. 18.2

Affects CompanyExpat · Non-residentIndividual

V0829-17 4 Apr 2017

30% reduction not applicable to loyalty insurance lump sum payments deemed employment income

SG de Tributación de las Operaciones Financieras

rendimientos del trabajoreducción del 30 por cientoperíodo de generaciónderecho de rescateseguro de fidelización LIRPF — Ley 35/2006 del IRPF art. 17.1LIRPF — Ley 35/2006 del IRPF art. 18.2

Affects CompanyExpat · Non-residentIndividual

V4521-16 19 Oct 2016

Transfer of pension commitments between companies is subject to Corporation Tax

SG de Tributación de las Operaciones Financieras

compromisos por pensionesderecho de rescateseguro colectivomovilización de compromisosimputación de primas LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 19.4.aReal Decreto 1588/1999

Affects CompanyExpat · Non-residentIndividual

V2344-15 24 Jul 2015

Acquisition of insurance surrender rights between private individuals is subject to ITPAJD

SG de Impuestos Patrimoniales, Tasas y Precios Públicos

transmisión patrimonial onerosaderecho de rescatebase imponibletransmisión de derechoscontrato de seguro TRITPAJD — RDLeg 1/1993 de ITP y AJD art. 7.1.ATRITPAJD — RDLeg 1/1993 de ITP y AJD art. 10.1

Affects CompanyExpat · Non-residentIndividual

V1821-15 10 Jun 2015

Requirement to disclose foreign pension plan depends on life insurance withdrawal rights

SG de Tributos

plan de pensionesobligación de informaciónderecho de rescateseguro de vidavaloración RGAT — RD 1065/2007, Reglamento General de Actuaciones Tributarias art. 42 ter.3.a)RGAT — RD 1065/2007, Reglamento General de Actuaciones Tributarias art. 42 ter.5

Affects CompanyExpat · Non-residentIndividual

V0868-14 28 Mar 2014

Surrender of a mixed life insurance policy is taxed as income from movable capital for Income Tax purposes

SG de Tributación de las Operaciones Financieras

seguro de vida mixtorendimientos del capital mobiliarioderecho de rescatebase imponible del ahorronegocio jurídico gratuito LIRPF — Ley 35/2006 del IRPF art. 6.4LIRPF — Ley 35/2006 del IRPF art. 17.2.a

Affects CompanyExpat · Non-residentIndividual

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