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 of accrual of the Tax (December 31). This value must be provided by the insurance company.

• Special case.

  From July 11, 2021, in cases in which the policyholder does not have the power to exercise the full redemption right on the date of accrual of the Tax, the insurance will be computed by 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.

Remember : to determine the tax base of the Wealth Tax, from July 11, 2021, insurance contracts of life in which the policyholder does not have the power to exercise the right of total redemption are 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 only include benefits in the event of death or disability or other complementary risk guarantees.