Doctrine by topic · DGT Observatory

Early 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 12 rulings · 2015–2026

Current position

Amounts received for early retirement through mutual agreement are classified as employment income and do not benefit from the dismissal exemption under Article 7 e) LIRPF (Personal Income Tax Law). The reduction for notoriously irregular income is only applicable if the amounts are imputed to a single tax period. The reimbursement of costs from special agreements by the company constitutes employment income, but the social security contributions paid are deductible expenses.

The DGT's position remains constant regarding the nature of amounts received through mutual agreement as employment income without dismissal exemption. The requirement of single imputation for the irregularity reduction has been maintained. No doctrinal changes are observed, but rather a reiteration of criteria regarding the classification of income and the impossibility of applying dismissal benefits.

Analysis based on 12 of 12 rulings with a stated position. Updated 27 September 2026.

Rulings on this topic

12
V1563-26 15 Jun 2026

Social security special agreement premiums are deductible expenses

SG de Impuestos sobre la Renta de las Personas Físicas
convenio especialrendimientos del trabajogastos deduciblesseguridad socialcompensación voluntaria LIRPF — Ley 35/2006 del IRPF art. 17.1LIRPF — Ley 35/2006 del IRPF art. 18.2
Affects CompanyExpat · Non-residentIndividual
V4638-16 2 Nov 2016

Non-resident pension payments not taxable in Spain if work was done abroad

SG de Fiscalidad Internacional
prejubilacióncompensación indemnizatoriaresidencia fiscalrentas de fuente españolarendimientos del trabajo TRLIRNR — RDLeg 5/2004 del IRNR art. 13.1.c)LGT — Ley 58/2003 General Tributaria art. 89.1
Affects CompanyExpat · Non-residentIndividual
V2598-16 13 Jun 2016

Disability tax reduction unavailable without active employment status

SG de Impuestos sobre la Renta de las Personas Físicas
rendimientos del trabajogastos deduciblestrabajador en activodiscapacidaddesempleo LIRPF — Ley 35/2006 del IRPF art. 19.2RIRPF — RD 439/2007, Reglamento del IRPF art. 12
Affects CompanyExpat · Non-residentIndividual
V3185-15 21 Oct 2015

Disability tax reduction cannot be applied if in pre-retirement status

SG de Impuestos sobre la Renta de las Personas Físicas
rendimientos del trabajogastos deduciblesdiscapacidadtrabajador en activoprejubilación LIRPF — Ley 35/2006 del IRPF art. 19LIRPF — Ley 35/2006 del IRPF art. 20.3
Affects CompanyExpat · Non-residentIndividual

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