FUTURE STABILITY INCOME

• Age

  You can apply for a capital annuity from the age of 55 to 85 years old.

• Amount

  You can arrange a capital annuity from €30,000.

• Interest

  The bank cannot give you an interest rate as these are published weekly and vary depending on the age range you are in.

• Frequency

  The income is paid out annually at least, depending on your choice, and you start to receive it the year after it is arranged.

• Guarantees

  There are two types of guarantee for two different cases.

  • During the life of the insured/investor: this product assures you a fixed and constant income throughout your life or until it is redeemed.
  • In the event of death: if the insured party dies within the first two years after taking out the product, 100% of the investment or premium paid will be received. From the third year on, 100% of the investment/premium paid plus 1% (maximum 4,000) of the amount of the investment/premium paid.

• Liquidity

  Although this product is designed to accompany you throughout your life, you can request the redemption of the premium/investment from the first year after it is arranged.

  The redemption value will depend on the market value of the assets in your portfolio at that time, and the capital contracted in case of death. The amount you will receive depends on the performance of the financial markets. You may lose some of the principal of your investment, in addition to the interest.

• Beneficiaries

  As this is insurance, you can specify the beneficiaries. If you do not do this, the beneficiaries will be your legal heirs.

• Tax information

  The benefits received are considered capital gains and are subject to a 19% withholding. The percentage personal income tax on annuities depends on the age of the investor or insured party when the policy is arranged:

  • 40% of the payments aged under 40.
  • 35% of the payments aged between 40 and 49,
  • 28% of the payments aged between 50 and 59,
  • 24% of the payments aged between 60 and 65,
  • 20% of the payments aged between 66 and 69,
  • 8% of the payments after the age of 70.

  In the event of death, the payments received by the beneficiaries will be subject to Inheritance and Donations Tax.

  If you are over 65 and the funds used for the investment or premium are from reinvestment of capital from sales of your assets (real estate, shares, investment funds, etc.) in the six months before arranging the Capital Annuity, you can benefit from a tax exemption of €240,000.

In the case of collection in the form of an immediate annuity, the amounts received will be considered as capital gains, in a percentage that depends on the age of the beneficiary when they contracted the policy. The percentages are:

The amounts considered income for income tax purposes will be subject to corresponding withholdings, currently at the rate of 19% (20% for residents of Navarra). This income will be taxed in income tax at a progressive rate from 19% to 23%. In Navarra, a scale is applied whereby the rate will be 19% for the first 6,000 euros, and 21% thereafter. In the Basque Country, the savings base is taxed at a fixed rate of 20%. In San Sebastian, the scale is 20% for the first €4,000 euros and 23% thereafter; in Alava, the rate is 20% for the first €10,000 euros and 22% thereafter.

Redemptions: in insurance redemptions, the difference between the amount received as the redemption and the single premium paid plus the part of the income so far received that was exempt from taxation due to the application of the percentages shown in the previous table is regarded as a capital gain. These capital gains are subject to withholdings at the current rate, which is currently 19% (20% for residents of Navarra). This income is taxed in income tax at a progressive rate from 19% to 23%. In Navarra, the scale is 19% for the first €6,000 euros and 21% thereafter. In the Basque Country, the savings base is taxed at a fixed rate of 20%. In San Sebastian, the scale is 20% for the first €4,000 euros and 23% thereafter; in Alava, the rate is 20% for the first €10,000 euros and 22% thereafter.

Death of the insured party: If the insured party dies, the designated beneficiary must pay the inheritance and donation tax on the amount of the insured capital. Depending on the degree of kinship, there is an additional reduction of €9,195.49 for each beneficiary of an insurance contract who is the spouse or an ascendant or descendant.

You cannot make additional contributions to the initial investment for annuities, but you can contract another annuity.

No. Once the annuity contract is in force, you cannot change the frequency.

You can subscribe to an annuity from €30,000, in either of their two forms.

The benefits obtained have the nature of capital gains. Such gains are subject to a 19% withholding (2016) that is included in the savings base and subject to a progressive rate, ranging from 19% to 23%. 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 at the time they contract the insurance. For example, if it is contracted at 70 years of age, the percentage of the income that is taxed is only 1.52% instead of 19%, providing that the total returns generated do not reach 6,000 euros.

You can exercise the right to redeem your annuity after the first year. The redemption value will depend on the market value of the assets in your portfolio at that time, and the capital contracted in case of death. The amount received will depend on the performance of the financial markets and losses may exceed the interest.

As this is an insurance policy, you can choose who you designate as the beneficiary. If you do not do so, your legal heirs will be the beneficiaries.