6.1 Tax regime for benefits received and early disposal of consolidated rights

a. Tax regime for benefits received

The benefits received for the contingencies covered by the pension plans (article 8.6 of the consolidated text of the Law regulating Pension Plans and Funds, approved by Royal Legislative Decree 1/2002, of November 29) will be taxed in their entirety. as work income without under any circumstances being able to be reduced by the amounts corresponding to the excess contributions.

Regarding the "retirement" contingency, it should be noted that article 8 of the Regulation of pension plans and funds approved by Royal Decree 304/2004, of February 20, provides for the possibility of anticipating the benefit corresponding to said retirement contingency in two assumptions.

As of when the participant turns 60 years old, provided that the plan specifications so provide and the following circumstances occur:
1. That he has ceased all activity determining registration in Social Security, without prejudice to the fact that, where appropriate, he continues to be assimilated to registration in any Social Security regime.
2. That at the time of requesting the early withdrawal, you do not yet meet the requirements to obtain the retirement benefit in the corresponding Social Security regime.
When the participant, regardless of his age, terminates his employment relationship and becomes legally unemployed in the cases contemplated in articles 49.1.g) [due to death, retirement or disability of the employer], 51 [collective dismissal], 52 [for objective reasons] and 57 [bankruptcy procedure] of the consolidated text of the Law on the Workers' Statute approved by Royal Legislative Decree 2/2015, of October 23.

Furthermore, with respect to the benefits received, take into account the possible application of the transitional regime of reductions applicable to benefits received in the form of capital from social security systems and that derive from contingencies that occur in the years 2015 or following, for the part corresponding to contributions made until December 31, 2006, which is discussed in Chapter 3.

In the event that the benefit is received in the form of an insured annuity, reversal mechanisms or certain benefit periods or counterinsurance formulas may be established in the event of death once the annuity has been established.

Remember: In accordance with article 8.6 of the consolidated text of the Law regulating Pension Plans and Funds, approved by Royal Legislative Decree 1/2002, of November 29, the contingencies for which benefits will be satisfied are:

Retirement.
Total and permanent work incapacity for the usual profession or absolute and permanent for all work, and severe disability, determined in accordance with the corresponding Social Security Regime.
Death of the participant or beneficiary, which may generate the right to benefits for widowhood, orphanhood or in favor of other heirs or designated persons.
Severe dependency or great dependency of the participant, regulated in Law 39/2006, of December 14, on the promotion of personal autonomy and care for people in a situation of dependency.

b. Advance disposal of consolidated rights

The consolidated rights of the participants, mutual members or insured of pension plans, insured pension plans, corporate social welfare plans and social welfare mutual societies can only be made effective in advance in the cases provided for in article 8.8 of the aforementioned consolidated text of the Law for the Regulation of Pension Plans and Funds approved by Royal Legislative Decree 1/2002, of November 29, which are long-term unemployment, serious illness and from 2025 for contributions and business contributions made with at least 10 years of antiquity.

In the event that the participant, mutual member or insured had, totally or partially, the consolidated rights, as well as the economic rights derived from the social security systems, in cases other than of those provided for in the regulations on pension plans and funds that we have indicated , must replace the reductions in the tax base improperly carried out through the appropriate complementary self-assessments, including late payment interest.

These complementary self-assessments must be submitted within the period between the date of the advance withdrawal and the end of the regulatory deadline for submitting the declaration corresponding to the tax period in which the advance withdrawal is made.

In this case, the amounts received that exceed the amount of the contributions made, including, where applicable, the contributions imputed by the promoter, will be taxed as work income in the tax period in which they are received.

Note: pan-European individual pension products

To the pan-European individual pension products regulated by Regulation ( EU ) 2019/1238 of the European Parliament and of the Council of 20 June 2019 on a pan-European individual pension product, The treatment that corresponds to pension plans will apply to them in Personal Income Tax .

In particular:

The benefits received by the beneficiaries of the pan-European individual pension products will in any case be considered income from work and will not be subject to the Inheritance and Gift Tax .
If the taxpayer had rights of economic content derived from contributions to pan-European individual pension products, totally or partially, in cases other than those provided for in the regulations on pension plans and funds, he must replace the reductions in the tax base unduly carried out, through the appropriate complementary self-assessments, including late payment interest. The amounts received that exceed the amount of the regularized contributions will be taxed as income from work in the tax period in which they are received.