Doctrine by topic · DGT Observatory

40 Percent Reduction: 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 48 rulings · 2014–2026

Current position

The 40% reduction on contributions made until December 31, 2006, can only be applied to one of the benefits received as a lump sum derived from the same contingency. The taxpayer is free to choose the tax year in which to apply said reduction, provided that the period established by the twelfth transitional provision of the LIRPF (Personal Income Tax Law) is respected. In cases of early retirement due to collective dismissal, the contingency is understood to have occurred when the requirements for collection are met (termination of employment and unemployment).

The DGT's position remains stable regarding the application of the reduction for contributions made prior to 2007. The evolution focuses on specifying the moment the contingency occurs for the calculation of timeframes, especially in cases of early retirement or exceptional liquidity. Recent rulings confirm that the right to choose the tax year of application remains intact.

Turning points

  1. V1866-17

    Establishes that the retirement reduction does not prevent its application in another year to death benefits, as these are distinct contingencies.

  2. V0588-24

    Clarifies that the reduction can only be applied to one of the benefits received as a lump sum derived from the same contingency.

Analysis based on 44 of 48 rulings with a stated position. Updated 23 September 2026.

Rulings on this topic

24
V0710-26 30 Mar 2026

Advance pension claim triggers contingency event

SG de Tributación de las Operaciones Financieras
contingencia de jubilaciónreducción del 40 por cientorégimen transitorioderechos consolidadossituación legal de desempleo LIRPF — Ley 35/2006 del IRPF art. 17.2.a.3LIRPF — Ley 35/2006 del IRPF art. disposición transitoria duodécima
Affects CompanyExpat · Non-residentIndividual
V0670-26 26 Mar 2026

40% reduction in pension plan withdrawals depends on contingency date

SG de Tributación de las Operaciones Financieras
contingencia de jubilaciónrescate de plan de pensionesreducción del 40 por cientorendimientos íntegros del trabajorégimen transitorio LIRPF — Ley 35/2006 del IRPF art. 17.2.a.3LIRPF — Ley 35/2006 del IRPF art. 18.2
Affects CompanyExpat · Non-residentIndividual
V1546-25 27 Aug 2025

40% reduction applicable only once per contingency in the same pension plan

SG de Operaciones Financieras
rendimientos del trabajorégimen transitoriocontingencia de jubilaciónprestación en forma de capitalreducción del 40 por ciento LIRPF — Ley 35/2006 del IRPF art. 17.2.a) 3.ªLIRPF — Ley 35/2006 del IRPF art. DT 12
Affects CompanyExpat · Non-residentIndividual
V1332-25 16 Jul 2025

IRPF retention on assured pension withdrawal applies to gross amount

SG de Tributación de las Operaciones Financieras
rendimientos del trabajoplan de previsión aseguradoreducción del 40 por cientoretención a cuentabase de retención LIRPF — Ley 35/2006 del IRPF art. 17.2.a) 6.ªLIRPF — Ley 35/2006 del IRPF art. DT 12
Affects CompanyExpat · Non-residentIndividual
V0588-24 9 Apr 2024

The 40% reduction on pension plan lump-sum withdrawals can only be applied once

SG de Tributación de las Operaciones Financieras
rendimientos del trabajoprestación en forma de capitalcontingencia de jubilaciónrégimen transitorioreducción del 40 por ciento LIRPF — Ley 35/2006 del IRPF art. 17.2.a) 3.ªLIRPF — Ley 35/2006 del IRPF art. DT 12
Affects CompanyExpat · Non-residentIndividual
V2120-22 10 Oct 2022

The 40% reduction for contributions made before 2007 must be applied within the timeframe set by the contingency

SG de Tributación de las Operaciones Financieras
régimen transitoriocontingencia de jubilaciónprestación en forma de capitalreducción del 40 por cientoplan de pensiones 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
V3300-19 29 Nov 2019

The 40% reduction in pension plans depends on the year the contingency occurs

SG de Tributación de las Operaciones Financieras
contingencia de jubilaciónreducción del 40 por cientoderechos consolidadosprestación en forma de capitalrégimen transitorio LIRPF — Ley 35/2006 del IRPF art. 17.2.a.3LIRPF — Ley 35/2006 del IRPF art. Disposición transitoria duodécima
Affects CompanyExpat · Non-residentIndividual
V1698-18 14 Jun 2018

40% pension plan reduction applicable if received as a lump sum before 2019

SG de Tributación de las Operaciones Financieras
rendimientos del trabajoprestación en forma de capitalreducción del 40 por cientomovilización de derechosrégimen transitorio LIRPF — Ley 35/2006 del IRPF art. 17.2.a).3ªLIRPF — Ley 35/2006 del IRPF art. disposición transitoria duodécima
Affects CompanyExpat · Non-residentIndividual
V1619-18 11 Jun 2018

40% pension plan reduction applicable if received as a lump sum before end of 2018

SG de Tributación de las Operaciones Financieras
rendimientos del trabajoprestación en forma de capitalreducción del 40 por cientorégimen transitoriocontingencia LIRPF — Ley 35/2006 del IRPF art. 17.2.a).3ªLIRPF — Ley 35/2006 del IRPF art. disposición transitoria duodécima
Affects CompanyExpat · Non-residentIndividual

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