Tax on contributions
Contributions to retirement plans 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. Spain’s tax system defines maximum deduction limits for contributions to retirement plans:
| AGE |
EUROS |
| Contributors aged 50 or under |
€10,000 a year |
| Contributors aged over 50 |
€12,500 a year |
Each contributor can deduct up to 30% of their annual net income from work and economic activities. This percentage rises to 50% for those aged over 50.
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
Let's use an example to see the tax savings (only taking the tax rates applicable to the state deduction into account) of a person aged under 50 who only deducts the personal minimum.
| €26.000,00 |
€5.151 |
€20.849 |
€7.800 |
€998,8 |
| €35.500,00 |
€5.151 |
€30.349 |
€10.000 |
€1.400 |
| €51.000,00 |
€5.151 |
€45.849 |
€10.000 |
€1.850 |
| €66.000,00 |
€5.151 |
€60.849 |
€10.000 |
€2.073,3 |
CONTRIBUTIONS ON BEHALF OF YOUR SPOUSE
If the income from the work or business and/or professional activities of your spouse fails to reach €8,000 or if your spouse does not have any such income, then you can deduct contributions to their retirement plans by up to €2,000 a year.
CONTRIBUTIONS ON BEHALF OF THE DISABLED
Regardless of the contributions described above, you can also claim tax benefits for contributions made on behalf of disabled relatives of up to €10,000.