Doctrine by topic · DGT Observatory

Real and Effective Severance: 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 34 rulings · 2014–2026

Current position

The exemption of severance pay requires the real and effective severance of the worker's connection with the company. The presumption of lack of severance is maintained if the worker provides services to the same company or to a related entity within the three years following the termination. This presumption allows for evidence to the contrary to demonstrate that the new relationship does not invalidate the initial severance.

The DGT's position remains constant regarding the requirement of real and effective severance. The evolution shows an important nuance: the Administration clarifies that, even if the three-year presumption is not applied due to contracting with an independent entity, the exemption remains conditional on the existence of a real severance that must be proven as a fact.

Turning points

  1. V0762-20

    Clarifies that the exemption remains conditional on real severance even if a contract is made with an independent agent and the three-year presumption is not applied.

  2. V2781-23

    Reinforces that the accreditation of severance is a matter of fact assessable by the Administration through any means of proof, even outside the presumption period.

Analysis based on 34 of 34 rulings with a stated position. Updated 23 September 2026.

Rulings on this topic

24
V0912-26 24 Apr 2026

New hiring within three years after dismissal presumes no real separation

SG de Impuestos sobre la Renta de las Personas Físicas
indemnización por despidoexencióndesvinculación real y efectivapresunción iuris tantumempresa vinculada LIRPF — Ley 35/2006 del IRPF art. 7.eRIRPF — RD 439/2007, Reglamento del IRPF art. 1
Affects CompanyExpat · Non-residentIndividual
V4664-16 3 Nov 2016

Severance pay may lose tax exemption if re-employed by the same or related company

SG de Impuestos sobre la Renta de las Personas Físicas
indemnización por despidoexencióndesvinculación real y efectivaempresas vinculadaspresunción de no desvinculación LIRPF — Ley 35/2006 del IRPF art. 7.eRIRPF — RD 439/2007, Reglamento del IRPF art. 1
Affects CompanyExpat · Non-residentIndividual

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