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Investment products

How is the income received in annuities taxed?

The income received is considered as income from movable capital.

Capital gains are subject to a 19% withholding that is included in the savings base and subject to a proportional rate, ranging from 19% to 28%.

However, annuities have a distinctive tax advantage: The capital gains are included in the savings base, but only at a percentage of the annual income received. This rate is based on the age of the insured person when they take out the insurance.

For example, if you take out the insurance when you are 70 years old, the percentage of income taxed is only 1.52% instead of 19% and provided that the total income from movable capital obtained in the tax year does not exceed €6,000.