Doctrine by topic · DGT Observatory

Partial Withdrawal: 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 9 rulings · 2016–2026

Current position

Pension plan benefits are considered income from employment and must be included in the general tax base. If received as a lump sum, it is possible to apply the 40% reduction on contributions made until December 31, 2006. However, this reduction can only be applied once for benefits derived from the same contingency, allowing the taxpayer to choose the tax year in which to apply it.

The DGT's position remains constant regarding the nature of benefits as income from employment. It has been repeatedly reaffirmed that the 40% reduction for contributions prior to 2006 is unique per contingency, even if multiple partial withdrawals are made as lump sums.

Turning points

  1. V1602-24

    Clarifies that if several partial withdrawals are made as lump sums for the same contingency, the 40% reduction is only applicable to one of them.

Analysis based on 8 of 9 rulings with a stated position. Updated 29 September 2026.

Rulings on this topic

9
V0479-25 25 Mar 2025

Pension plan benefits classified as income subject to withholding

SG de Tributación de las Operaciones Financieras
rendimientos del trabajoplan de pensionesrescate parcialretenciónbase imponible general LIRPF — Ley 35/2006 del IRPF art. 17.2.a) 3.ªRIRPF — RD 439/2007, Reglamento del IRPF art. 75.1
Affects CompanyExpat · Non-residentIndividual
V0324-25 18 Mar 2025

Reduction of 40% applicable only once per pension scheme withdrawal

SG de Tributación de las Operaciones Financieras
régimen transitorioreducción del 40%contingencia de jubilaciónprestación en forma de capitalrendimientos del trabajo LIRPF — Ley 35/2006 del IRPF art. 17.2.a) 3.ªLIRPF — Ley 35/2006 del IRPF art. DT 12
Affects CompanyExpat · Non-residentIndividual
V0264-25 6 Mar 2025

40% reduction in temporary regime applicable only once per contingency

SG de Tributación de las Operaciones Financieras
régimen transitorioreducción del 40%prestación en forma de capitalcontingenciarendimientos del trabajo LIRPF — Ley 35/2006 del IRPF art. 17.2.a.3LIRPF — 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

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