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Practical Heritage Manual 2021.

6. Life insurances

Regulations: Art. 17.One Wealth Tax Law

We must distinguish:

  • In general, life insurance policies contracted by the taxpayer, even if the beneficiary is a third party, will be computed at their surrender value at the time the tax accrues (December 31). This value must be provided by the insurance company.

  • Special case.

    As of July 11, 2021, in cases in which the policyholder does not have the power to exercise the full redemption right on the date of tax accrual, the insurance will be computed for the value of the mathematical provision on the aforementioned date in the tax base of the policyholder.

    Exception : The above will not apply to temporary insurance contracts that only include benefits in the event of death or disability or other complementary risk guarantees.

    Note: Until July 11, 2021, this type of life insurance, when the policy did not recognize any right of redemption, in whole or in part, was not subject to Wealth Tax, regardless of whether or not the policyholder was, simultaneously , the beneficiary for the survival contingency.

New 2021 : to determine the tax base of the Wealth Tax, as of July 11, 2021, life insurance contracts in which the policyholder does not have the power to exercise the right of full redemption will be included in the tax base of the Wealth Tax for the value of the mathematical provision on the date of accrual of the Tax (December 31 of each year), with the exception of those temporary insurance contracts that They only include benefits in the event of death or disability or other complementary risk guarantees.