Doctrine by topic · DGT Observatory

Partial Retirement: 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 33 rulings · 2014–2024

Current position

Amounts received for partial retirement are considered income from employment. The 40% reduction under Article 18.2 of the Personal Income Tax Law (LIRPF) is not applicable because the amounts are not notoriously irregular nor are they linked to a generation period exceeding two years. The retirement contingency for the transitional regime is considered to have occurred at the moment of accessing partial retirement if the collection of the benefit begins before total retirement.

The DGT's position remains constant in denying the reduction for irregularity, considering that the payments do not correspond to a generation period exceeding two years. A coherent line has been maintained regarding when the retirement contingency occurs for the purposes of the transitional regime. No changes in criterion are observed in the analyzed sequence.

Analysis based on 32 of 33 rulings with a stated position. Updated 24 September 2026.

Rulings on this topic

24
V0645-24 11 Apr 2024

Deadline for applying the 40% pension plan reduction under the transitional regime

SG de Tributación de las Operaciones Financieras
régimen transitorioreducción del 40%jubilación parcialcontingenciaprestación en forma de capital LIRPF — Ley 35/2006 del IRPF art. 17.2.a) 3.ªLIRPF — Ley 35/2006 del IRPF art. disposición transitoria duodécima
Affects CompanyExpat · Non-residentIndividual
V0251-21 12 Feb 2021

Deadline for applying 40% pension plan reduction depends on when the contingency occurs

SG de Tributación de las Operaciones Financieras
jubilación parcialjubilación totalcontingenciarégimen transitorioreducción del 40% LIRPF — Ley 35/2006 del IRPF art. disposición transitoria duodécima.2LIRPF — Ley 35/2006 del IRPF art. disposición transitoria duodécima.4
Affects CompanyExpat · Non-residentIndividual
V2751-18 19 Oct 2018

Determining the retirement contingency for the application of the 40% reduction

SG de Tributación de las Operaciones Financieras
régimen transitoriocontingencia de jubilaciónjubilación parcialjubilación totalprestación en forma de capital LIRPF — Ley 35/2006 del IRPF art. disposición transitoria duodécimaTR Ley del IRPF (RD Leg 3/2004)
Affects CompanyExpat · Non-residentIndividual
V1671-17 29 Jun 2017

Receiving a retirement pension does not prevent Wealth Tax exemption

SG de Impuestos Patrimoniales, Tasas y Precios Públicos
exenciónjubilación parcialpensión de jubilaciónreducción en la base imponibleimpuesto sobre el patrimonio LIP — Ley 19/1991 del Impuesto sobre el Patrimonio art. 4.Ocho.UnoLISD — Ley 29/1987 de Sucesiones y Donaciones art. 20.2.c
Affects CompanyExpat · Non-residentIndividual

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