Doctrine by topic · DGT Observatory

Insurance Entity: 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 21 rulings · 2014–2026

Current position

Individuals over 65 years of age may exclude capital gains from a transfer if they allocate the amount obtained, up to a maximum of 240,000 euros, to the establishment of an insured life annuity within a period of six months. The contract must be entered into with an insurance entity and the annuity must have an annual or shorter periodicity. The limits on the decrease of annuities and the conditions regarding reversion mechanisms or reinsurance formulas must be respected.

The DGT's position remains constant in requiring that the contract be entered into with an insurance entity to access the exemption. Throughout the rulings, technical clarifications have been integrated regarding the limit on the decrease of annuities and the restrictions on reinsurance formulas or certain periods.

Turning points

  1. V1461-19

    Introduces the limitation that the annual amount of the annuities cannot decrease by more than five percent compared to the previous year.

Analysis based on 21 of 21 rulings with a stated position. Updated 25 September 2026.

Rulings on this topic

21
V0524-26 5 Mar 2026

Gains from property transfer exempt if reinvested in life annuities

SG de Tributación de las Operaciones Financieras
ganancias patrimonialesrenta vitaliciaexención por reinversióntransmisión de elementos patrimonialesentidad aseguradora LIRPF — Ley 35/2006 del IRPF art. 38.3RIRPF — RD 439/2007, Reglamento del IRPF art. 42
Affects CompanyExpat · Non-residentIndividual
V1570-25 3 Sept 2025

Capital gains from property transfer exempt if reinvested in lifetime income

SG de Tributación de las Operaciones Financieras
ganancia patrimonialrenta vitaliciaexención por reinversióntransmisión de elementos patrimonialesentidad aseguradora LIRPF — Ley 35/2006 del IRPF art. 38.3RIRPF — RD 439/2007, Reglamento del IRPF art. 42
Affects CompanyExpat · Non-residentIndividual
V0732-24 16 Apr 2024

Reinvestment exemption for life annuities requires compliance with Art. 38.3 IRPF

SG de Tributación de las Operaciones Financieras
ganancias patrimonialesrenta vitaliciaexención por reinversióntransmisión de elementos patrimonialescontribuyente mayor de 65 años LIRPF — Ley 35/2006 del IRPF art. 33LIRPF — Ley 35/2006 del IRPF art. 38.3
Affects CompanyExpat · Non-residentIndividual
V3416-19 12 Dec 2019

Reinvestment exemption for life annuities may apply if legal requirements are met

SG de Tributación de las Operaciones Financieras
ganancia patrimonialrenta vitaliciaexención por reinversióntransmisión de elementos patrimonialesentidad aseguradora LIRPF — Ley 35/2006 del IRPF art. 38.3RIRPF — RD 439/2007, Reglamento del IRPF art. 42
Affects CompanyExpat · Non-residentIndividual
V3164-16 6 Jul 2016

Life insurance with foreign insurer must be declared in Model 720

SG de Tributos
modelo 720seguro de vidavalor de rescateentidad aseguradoraobligación de informar RGAT — RD 1065/2007, Reglamento General de Actuaciones Tributarias art. 42 ter.3LGT — Ley 58/2003 General Tributaria art. 89.1
Affects CompanyExpat · Non-residentIndividual
V0268-15 23 Jan 2015

Allowance for outstanding claims not reported is deductible only up to the minimum amount established by applicable regulations

SG de Impuestos sobre las Personas Jurídicas
provisión para siniestros pendientes de declaraciónprovisiones técnicasmétodos estadísticoscuantía mínimagasto fiscalmente deducible LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 10.3LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 14.7
Affects CompanyExpat · Non-residentIndividual

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