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

**Taxation of life or disability insurance contracts and capitalization operations**
Subject	Net return on movable capital	Net yield reductions
Benefits in the form of capital derived from life insurance	In life insurance (CP - PS) being: CP = Perceived capital PS = Premiums paid for survival	Transitional regime for contracts generating increases or decreases in assets prior to 01-01-1999 ( DT 4 Law Personal Income Tax ): The part of the total net income corresponding to premiums paid prior to 12-31-1994, generated prior to 01-20-2006, will be reduced by the percentage of 14.28% for each year between the payment of the premium and on 12-31-1994. To determine this part of the performance, the following weighting coefficients must be successively applied: (Premium x Number of years until collection) ÷ ∑ (each premium x Number of years until collection) Days from premium payment until 01-20-2006 ÷ Days from premium payment to collection date Joint maximum limit of deferred capital received since January 1, 2015: 400,000 euros
Benefits in the form of capital derived from life insurance	In insurance that combines survival with death or disability (CP - PS - PCR) being: CP = Perceived capital PS = Premiums paid for survival PCR = Premiums paid that correspond to the capital at risk due to death or disability with a limit of 5% of the mathematical provision
Disability benefits in the form of capital	(CP - PS) * This same treatment is given to benefits derived from insurance whose beneficiary is the mortgagee, with certain requirements	No
Benefits derived from capitalization operations in the form of deferred capital	(CP - PS)	No
Immediate annuities derived from life or disability insurance	annuity x 40% if recipient < 40 years annuity x 35% if recipient 40-49 years 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 or older	No
Immediate temporary income derived from life or disability insurance	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 rental	No
Temporary or deferred life annuities ⁽¹⁾	a + [(VA - PS) ÷ N] being: to = annuity x percentage according to the age of the recipient or duration of the income (the same as for temporary or immediate life annuities) VA = Present actuarial financial value of the income that is constituted PS = Amount of premiums paid N = number of years of duration of the temporary income, with a maximum of 10 years. If the income is for life, 10 years will be taken as the divisor Note: When the annuities have been acquired free of charge inter vivos, the RCM will be, exclusively, the result of applying to each annuity the percentage corresponding to the immediate temporary or life annuities.	No
Deferred income received as retirement and disability benefits, when there has been no mobilization of provisions during the term of the insurance	Excess of the benefit over the premiums paid (from the moment in which 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 current actuarial value of the income at the time of its creation.	No
Extinction of temporary or life annuities due to the exercise of the right of redemption	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 the income was constituted before 01-01-1999, the accumulated profitability until the income was constituted will be additionally subtracted.	Transitional scheme (The reductions of the transitional regime are not applicable to insurance contracts whose income was established before 01-01-1999).
Life insurance in which the policyholder assumes the risk of the investment " unit linked	If the special temporary imputation rule (art.14.2.h, Law Personal Income Tax ) is not applicable: Depending on whether the payment is received in the form of capital or income, the rules discussed in the previous sections will apply. If the special temporary imputation rule (art.14.2.h, Law Personal Income Tax ) applies: Annual net return = difference in net asset value between the assets covered by the policy at the end and beginning of the tax period	No
Note to the box: ⁽¹⁾When said annuities had been established prior to 01-01-1999, the profitability is solely the result of applying the percentages indicated for immediate life or temporary annuities, as appropriate. See the DT fifth of the Personal Income Tax Law . ^(Back)