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Practical Income Manual 2021.

3. Life or temporary annuities derived from the imposition of capital

Regulations: Art. 25.3 b) Law Personal Income Tax

In life annuities or other temporary annuities that have as their cause the imposition of capital, except when they have been acquired by inheritance, legacy or any other succession title, the return on the movable capital will be the result of applying to each annuity the percentages provided, respectively, for immediate life or temporary annuities derived from life insurance contracts.

Remember

  • In the case of immediate life annuities derived from life insurance contracts, which have not been acquired by inheritance, legacy or any other succession title, the result of applying to each annuity the following percentages depending on the age of the annuitant at the time of the constitution of the annuity:

    Age of recipientApplicable percentage
    Less than 40 years 40 percent
    Between 40 and 49 years 35 percent
    Between 50 and 59 years 28 percent
    Between 60 and 65 years 24 percent
    Between 66 and 69 years 20 percent
    70 or more years 8 per 100

    These percentages, which will be those corresponding to the age of the annuitant at the time of the constitution of the annuity, will remain constant throughout its validity.

  • In the case of immediate temporary income derived from life insurance contracts, which have not been acquired by inheritance, legacy or any other succession title, the result of applying to each annuity the following percentages depending on the duration of the income:

    Rental durationApplicable percentage
    Less than or equal to 5 years 12 per 100
    Greater than 5 and less than or equal to 10 years 16 per 100
    Greater than 10 and less than or equal to 15 years 20 percent
    Over 15 years 25 percent