Doctrine by topic · DGT Observatory
How the DGT's position on this topic has evolved, and the rulings it rests on.
Current position
The survival benefit of an individual life insurance policy is considered income from movable capital, calculated as the difference between the capital received and the premiums paid. If the employer pays the premiums, these may only be deducted if they were taxed as income for the employee without tax advantage. The capital at risk due to death is classified as income from employment in kind.
The DGT's position remains stable regarding the distinction of the nature of the income. Surrender or survival benefits are taxed as income from movable capital, while the portion corresponding to the capital at risk or the unconditional waiver of rights generates income from employment in kind. Recent rulings clarify the deductibility of premiums paid by the company and the treatment of the assignment of the legal position.
Turning points
Establishes that if the company's waiver of its rights becomes unconditional, income in kind is generated, valued by the mathematical provision.
Clarifies that the income in kind for unconditional waiver is specifically classified as income from employment and is valued by the mathematical provision minus the amount subject to surrender.
Determines that if the policyholder's waiver implies a free assignment of their legal position, the income from movable capital is calculated by subtracting the value of said assignment from the premiums paid.
Analysis based on 8 of 8 rulings with a stated position. Updated 1 October 2026.