Tax on contributions
In the Basque Country and in addition to the general mutual benefit systems, there are also Voluntary Mutual Benefit Organisations (EPSV).
Contributions to retirement plans and EPSV involve significant tax incentives: they reduce your income tax base and either cut the amount payable or increase the sum to be returned on filing your Income Tax Return.
Caja Navarra places a full range of options at your disposal: you can make regular contributions (monthly, quarterly, annually), extraordinary contributions and can even halt contributions, start them again or modify them at your convenience.
Contributions should be calculated in order to obtain the desired tax benefits. The Basque Country's tax system defines maximum deduction limits for contributions to retirement plans:
| AGE |
EUROS |
| Contributors aged 52 or under |
€8,000 a year |
| Contributors aged over 52 |
€8,000 a year + €1,250 for each year over the age of 52 (maximum limit: €24,250) |
The limits defined above are applied jointly and collectively to retirement plans, contributions made to mutual benefit associations, social insurance plans and certain forms of insurance. However, this limit is independent of the limit applied to business contributions to mutual benefit systems.
Let's use an example to see the tax savings in the Basque Country of a person aged under 53:
| €26.000,00 |
€8.000 |
€2.240 |
| €35.500,00 |
€8.000 |
€2.685,2 |
| €51.000,00 |
€8.000 |
€3.164,5 |
| €66.000,00 |
€8.000 |
€3.378 |
CONTRIBUTIONS ON BEHALF OF YOUR SPOUSE
If the income to include in the general tax base of your spouse fails to reach €8,000 in the Basque Country, or if your spouse does not have any such income, then you can deduct contributions to their retirement plans by up to €2,400 a year.
CONTRIBUTIONS ON BEHALF OF THE DISABLED
Regardless of the contributions described above, you can also claim tax benefits for contributions of up to €8,000 made on behalf of disabled relatives.