6. Life insurances

Regulations: Art. 17.One Wealth Tax Law

We must distinguish:

• As a general rule, life insurance policies taken out by the taxpayer, even if the beneficiary is a third party, will be computed at their surrender value at the time the tax becomes due (December 31). This value must be provided by the insurance company.

• Special assumption.

  As of July 11, 2021, in cases where the policyholder does not have the right to exercise the right of total surrender on the tax accrual date, the insurance will be computed at the value of the mathematical provision on the aforementioned date in the policyholder's tax base.

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

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

New 2021 : In order to determine the tax base for 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 total surrender will be included in the tax base for 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 only include benefits in the event of death or disability or other complementary risk guarantees.