Show/Hide legal text
The eligibility requirements for personal income tax exemptions on capital gains arising from transferring assets which are subsequently reinvested in life annuities are as follows:
- The policyholder must be 65 years old or more.
- The life annuity must be set up within a maximum period of six months from the date that the asset is transferred.
- The life annuity must start to be received within a year of it being set up and be paid out at least annually, and the annual pay-out amount cannot fall more than 5% compared to the previous year.
- The taxable person must inform the insurance company that the life annuity taken out is used for reinvesting the amount arising from transferring assets.
- The maximum total amount that can be reinvested is 240,000 euros. The maximum that a taxpayer can pay throughout their life is €240,000. If the reinvested amount is less than the total obtained, the exempt capital gain will be calculated proportionally to the reinvested amount.
- When the reinvestment is not made in the same year as the sale, the taxable person must declare their intention to reinvest this amount in the tax return for the year when this equity increase occurs.