A) IMMEDIATE LIFE ANNUITIES (art. 25.3 Law)
In the case of immediate annuities, the result of applying the following percentages to each annuity will be considered the return on movable capital:
- 40 percent, when the recipient is under 40 years old.
- 35 percent, when the recipient is between 40 and 49 years old.
- 28 percent, when the recipient is between 50 and 59 years old.
- 24 percent, when the recipient is between 60 and 65 years old.
- 20 percent, when the recipient is between 66 and 69 years old.
- 8 percent, when the recipient is over 70 years old.
These percentages will be those corresponding to the age of the annuitant at the time of the constitution of the annuity and will remain constant throughout its validity.
B) DEFERRED LIFE ANNUMS (art. 25.3 Law)
When deferred annuities are received, the result of applying to each annuity the corresponding percentage of those provided above, increased by the profitability obtained until the annuity is established, will be considered a return on capital.
If the income has been acquired by donation or any other legal transaction free of charge and inter vivos, the return on the movable capital will be, exclusively, the result of applying to each annuity the corresponding percentage of those indicated above.
PROFITABILITY OBTAINED UNTIL THE MOMENT OF CONSTITUTION OF THE DEFERRED INCOME (art. 18 Rgl.)
When deferred income is received, the profitability obtained until the income is established will be subject to tax in accordance with the following rules:
The profitability will be determined by the difference between the current financial-actuarial value of the income that is created and the amount of the premiums paid.
This profitability will be distributed linearly during the first 10 years of collecting the annuity. If it is a temporary income, it will be distributed linearly over the years of duration with a maximum of 10 years.