Tax
Regime
8
74
STRUCTURE ORGANISATION AND OPERATION
OF THE SPANISH SECURITIES MARKET
PENSION SYSTEMS
Individual pension plans
EI
General
Marginal
Personal
Income Tax
rate
YES (5)
Pension plan contributions can be deducted
from the taxable base for Personal Income
Tax, up to the following limits: 30% of the total
net employment income, up to a maximum of
€10,000; for the over fifties, 50% up to a maxi-
mum of €12,500. Yields are taxed as employ-
ment income and are subject to the withholding
rate on such income. A transitory regime is
established for contributions made before 2007,
for which a tax reduction coefficient of 40% can
be applied to the yields received.
Guaranteed pension funds
EI
General
Marginal
Personal
Income Tax
rate
YES (5)
Pension plan contributions to guaranteed pension
funds can be deducted from the taxable base for
Personal Income Tax, up to the following limits:
30% of the total net employment income, up to
a maximum of €10,000; for the over fifties, 50%
up to a maximum of €12,500. Yields are taxed
as employment income, and are subject to the
withholding rate on income. A transitory regime
is established for contributions made before
2007, for which a tax reduction coefficient of
40% can be applied to the yields received.
INSURANCE
Life insurance: for death, survivor pensions, mixed insurance and
single premium policies, and policies combined with unit-linked in-
vestment funds
II
Saving (4) 2 1%-25%-
27% 21%
Contributions made do not benefit from tax
breaks, although benefits do. When the bene-
fit is received as interest, the II is calculated as
the annual interest received multiplied by cer-
tain percentages depending on the age of the
beneficiary or the term over which the yield
will be received. When the benefit is received
as capital, the II is the difference between
the capital received and the contributions
paid, while the Transitory Regime and/or tax
compensation regime prior to 2006 is applied
where appropriate.
Systematic Individual Savings Plan
II
Saving (4) 2 1%-25%-
27% 21%
Contributions made do not benefit from tax
breaks, although benefits do life annuities that
the Systematic Individual Pension Plans ge-
nerate as a benefit. This benefit is taxed as II,
calculated by multiplying the annuity received
by certain percentages depending on the age
of the beneficiary.
- Survivor’s pensions
- Mixed and single premium
- Combined with unit-linked investment funds
Systematic Individual Savings Plan
II
Saving
19%-21% 19%
Contributions made do not benefit from tax
breaks, although benefits do life annuities that
the Systematic Individual Pension Plans ge-
nerate as a benefit. This benefit is taxed as II,
calculated by multiplying the annuity received
by certain percentages depending on the age
of the beneficiary.
Systematic Individual Savings Plan
II
Saving
(4 21%-25%-
27% 21%
Contributions made do not benefit from tax
breaks, although benefits do life annuities that
the Systematic Individual Pension Plans ge-
nerate as a benefit. This benefit is taxed as II,
calculated by multiplying the annuity received
by certain percentages depending on the age
of the beneficiary.
KEY - Tax treatment: II: Investment income / CG: Capital gains / EI: Employment income
NOTES: (1) Investment income from the transfer to third parties of own capital from entities related to the taxpayer are excluded from savings income. (2) These funds have two components: the II from the guaran-
tee, and the CG from the redemption or sale of the fund units. (3) An exception to “capital gains” (CG) arises when the transactions are performed by a natural person for the purpose of covering a risk affecting its
business, in which case the yield is treated as income from economic activities. (4) Savings: Taxed at 21% for the first €6,000, 25% up to €24,000, and 27% thereafter. (5) As per sliding scale defined for employment
income under the Personal Income Tax regime. (6) Capital Gains Tax: Capital gains from the sale of financial assets generated during a period of more than a year are taxed as savings income (dividends, bonds, deben-
tures, etc.) at 21% for the first €6,000, 25% up to €24,000, and 27% thereafter. Capital gains generated during a year or less are taxed at the margin Personal Income Tax rate (between 24.75% and 52%).
Tax
treatment
Taxable
base
Tax rate
(4)
Withholding
NOTES
1...,64,65,66,67,68,69,70,71,72,73 75,76,77,78,79,80,81,82,83