Summary Tables: Taxation of life or disability insurance contracts and capitalization operations

In life insurance

(CP - PS)

being:

CP = Capital received

PS = Premiums paid for survival

Transitional regime of contracts generating increases or decreases in assets prior to 01-01-1999 ( DT 4 Law IRPF ):

The portion of the total net income corresponding to premiums paid before 31-12-1994, generated before 20-01-2006, will be reduced by 14.28% for each year between the payment of the premium and 31-12-1994.

To determine this portion of the yield, the following weighting coefficients must be applied successively:

(Premium x No. of years until collection) ÷ ∑ (each premium x No. of years until collection)

Days from payment of premium until 20-01-2006 ÷ Days from payment of premium until collection date

Maximum joint limit of deferred capital received since January 1, 2015: 400,000 euros

In insurance that combines survival with death or disability

(CP - PS - PCR )

being:

CP = Capital received

PS = Premiums paid for survival

PCR = Premiums paid corresponding to the capital at risk due to death or disability with a limit of 5% of the mathematical provision

(CP - PS)

* This same treatment is given to benefits derived from insurance whose beneficiary is the mortgage creditor, with certain requirements

• annuity x 40% if recipient < 40 years
• annuity x 35% if recipient 40-49 years old
• annuity x 28% if recipient 50-59 years old
• annuity x 24% if recipient 60-65 years old
• annuity x 20% if recipient 66-69 years old
• annuity x 8% if recipient 70 years or older

• annuity x 12% if dr ≤ 5 years
• annuity x 16% if dr > 5 ≤ 10 years
• annuity x 20% if dr > 10 ≤ 15 years
• annuity x 25% if dr > 15 years

being dr = duration of the income

a + [(VA - PS) ÷ N]

being:

to = annuity x percentage according to the age of the recipient or duration of the annuity (the same as for temporary or immediate life annuities)

VA = Actuarial financial present value of the income that is established

PS = Amount of premiums paid

N = number of years of duration of the temporary income, with a maximum of 10 years. If the annuity is for life, 10 years will be taken as a divisor.

Note: When the income has been acquired free of charge inter vivos, the RCM will be, exclusively, the result of applying to each annuity the percentage that corresponds to the immediate temporary or life annuities.

Excess of benefit over paid premiums (from the moment when the amount of the benefit exceeds the total amount of said premiums)

Note: In the event that the income has been acquired free of charge inter vivos, the RCM will be the excess of the benefit over the actuarial present value of the income at the time of its creation.

Redemption amount + income paid up to the time of redemption - premiums paid - amounts that have been taxed as RCM in accordance with the previous sections

Note: When the income has been acquired free of charge inter vivos or is income established before 01-01-1999, the accumulated profitability until the income was established will also be subtracted.

Transitional scheme

(The reductions of the transitional regime are not applicable to insurance contracts whose income was established before 01-01-1999).

1. If the special rule of temporary imputation is not applicable (art.14.2.h, Personal Income Tax Law):

   Depending on whether the payment is received in the form of capital or income, the rules discussed in the previous sections will apply.

2. If the special rule of temporary imputation applies (art.14.2.h, Personal Income Tax Law):

   Annual net return = difference in net asset value between the assets allocated to the policy at the end and at the beginning of the tax period