Features and help

Pension plans explained one-to-one

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What is it?

Pension plans are a safe and profitable form of long-term savings that make it possible to guarantee your current standard of living in retirement.

A savings plan is profitable from the day that it is arranged, as if offers unbeatable tax advantages.

Why do I need a pension plan?

The current situation of the Social Security regime is difficult and expectations about its future development suggest that the public protection system will only provide a minimum level in future.

Pension plans are undoubtedly the best way to complement the state pension, due to their returns and tax advantages.

What are the advantages of pension plans?

Along with their returns, their major advantage is their tax treatment. Contributions to pension plans are subtracted from the income tax base; this is a direct saving and can result in paying a lower tax rate by reducing the tax base.

How can I access my savings?

You can access your savings as capital, income or a combination of the two.

When can I access my savings?

Although pension plans are designed for retirement, in a new development from 1 January 2015 you can access your savings if your pension plan is more than ten years old. Plans opened before this date may be accessed from 1 January 2025, including their returns. All amounts drawn will be taxed as income from work in personal income tax (IRPF).

You can also access your savings in the following cases:

  • Retirement or similar situation, including as part of an approved redundancy programme.

  • Total permanent disability for your usual profession, absolute disability for all work and major disability, death, severe dependence or major dependence.

Exceptionally, you may draw all of the capital, in the following cases:

  • Serious illness of the investor, their spouse or an ascendants or descendants of the first degree, or a person who lives with the participant under a guardianship or fostering regime and is dependent on them.

  • Unemployment, for which you must meet the following requirements:

    • No right to unemployment benefits through contributions made, or having exhausted such benefits.

    • To be registered as a job seeker with the corresponding public employment service at the time of the application.

    • The consolidated rights of self-employed workers who were previously part of a Social Security scheme in that capacity and have ceased their activity may also be made effective if the requirements in paragraphs one and two are met.

  • Foreclosure proceedings for the primary residence.

See Tax information Tax information

Pension Plans and voluntary pension schemes are highly profitable savings and investment products, plus they have outstanding tax benefits: periodic or extraordinary contributions made to the plan are deducted from the Personal Income Tax Base.

Tax deduction for Pension Plans contributions

In general, all contributions, periodic or extraordinary, made to the pension plan are subtracted from the Personal Income Tax base up to a maximum of 8,000 euros and provided that the amount contributed does not exceed 30% of the net income from work and economic activities.

Spouses: if the taxpayer has a spouse who does not earn net income from work or economic activities or who earns less than 8,000 euros per year, the taxpayer may deduct the contributions to plans in which the spouse participates in his/her tax base with a maximum limit of 2,500 euros per year (this limit is a joint limit for the contributions made to these plans and to mutual social welfare funds and assured retirement plans in which the spouse is a policyholder or holder).

Disabled people— people with a physical disability of at least 65%, a mental disability of at least 33% or who are legally declared to be disabled regardless of the degree)—may reduce their contributions to the plan from the taxable base up to a limit of 24,250 euros. This is a joint limit for contributions made to plans, mutual social welfare funds and assured benefits plans.

People who are related to or who are guardians of the disabled person may deduct the contributions made to disabled people from their tax base, with a maximum annual limit of 10,000 euros.

Total deductions made by all persons who make contributions in favour of the same disabled person, including those of the disabled person himself, may not exceed 24,250 euros per year.

Tax deduction for Pension Plans contributions (Region of Navarra)

Although they are very similar, Pension Plans taken out by holders living in the Autonomous Community of Navarra have variations in the tax deduction limits.

When the holder is at least 50 years old, all contributions, periodic or extraordinary, made to the pension plan are deducted from the Personal Income Tax with a tax base up to a maximum of 3,500 euros and provided that the amount contributed does not exceed 30% of net employment income.

When the holder is over 50, all periodic or extraordinary contributions, made to the pension plan are deducted from the Personal Income Tax base up to a maximum of 6,000 euros and provided that the amount contributed does not exceed 50% of net employment income.

Spouses: if the unit holder has a spouse with an income to be included in the tax base of less than 8,500 euros, he or she may deduct the contributions made by the spouse who holds the plan by up to a maximum of 2,000 euros per year. This is a joint limit for contributions made to plans, mutual social welfare funds and insured benefit plans in which the spouse is a policyholder or holder.

Disabled people— people with a physical disability of at least 65%, a mental disability of at least 33% or who are legally declared to be disabled regardless of the degree)—may deduct their contributions to the plan from the tax base up to a limit of 24,250 euros. This is a joint limit for contributions made to plans, mutual social welfare funds and assured benefits plans.

People who are related to or who are guardians of the disabled person may deduct the contributions made to disabled people from their tax base, with a maximum annual limit of 10,000 euros.

Total deductions made by all persons who make contributions in favour of the same disabled person, including those of the disabled person himself, may not exceed 24,500 euros per year.

Tax reduction for voluntary pension scheme contributions

The voluntary pension scheme is a product aimed solely and exclusively at residents of the Basque Country, which has a different tax system.

Generally speaking, contributions made by members, unit holders, policyholders or insured persons to social benefit systems are deducted from the Personal Income Tax tax base with a limit of 5,000 euros, and 8,000 euros for business contributions. The joint limit for personal and business contributions is 12,000 euros.

Contributions that have not benefited from a tax deduction as they were above the established limits, or due to an insufficient tax base, may be deducted in the following five fiscal years provided that the holder is not retired.

Spouses: if the unit holder has a spouse with an income to be included in the tax base of less than 8,000 euros, he or she may deduct the contributions made by the spouse to plans, mutual insurance companies and voluntary pension schemes in his or her tax base, by up to a maximum of 2,400 euros per year.

Disabled people— people with a physical disability of at least 65%, a mental disability of at least 33% or who are legally declared to be disabled regardless of the degree)—may deduct their contributions to the plan from the tax base up to a limit of 24,250 euros. This is a joint limit for contributions made to plans, mutual social welfare funds and assured benefits plans.

People who are related to or who are guardians of the disabled person may deduct the contributions made to disabled people from their tax base, with a maximum annual limit of 8,000 euros, notwithstanding the contributions they may make to their own Voluntary Social Welfare Entities.

Total deductions made by all persons who make contributions in favour of the same disabled person, including those of the disabled person himself, may not exceed 24,500 euros per year.

How Pension Plans are taxed at the time of redemption

Pension plan benefits are always considered to be employment income and are taxed according to the way in which they are redeemed.

When used in the form of capital or a single income.

Amounts for contributions made up to 31/12/2006 will have a 40% reduction on the contributions and on their yields. The period established to benefit from this reduction in the marginal tax rate will depend on the date on which the contingency was carried out. The following table shows the different cases

The remaining 60% will be added to the tax base.


Contigency year Maximum term for collection with 40% reduction (bill) Maximum time limit for collection with 40% reduction (approved Text)
2008 or earlier 31/12/2016 31/12/2018
2009 31/12/2017 31/12/2018
2010 31/12/2018 31/12/2018
2011 31/12/2019 31/12/2019
2012 31/12/2020 31/12/2020
2013 31/12/2021 31/12/2021
2014 31/12/2022 31/12/2022
2015 or later 31/12 + 2 years 31/12 + 2 years

100% of the amounts corresponding to contributions made since 1 January 2007 will be added to the Tax Base.

When used in the form of income or regular benefits.

In this case 100% is added to the Personal Income Tax Base.

How voluntary pension schemes are taxed at the time of redemption

When used in the form of capital or a single income. If 2 years and one day have passed since the first contribution, an exemption of 40% applies. The remaining 60% is added to the Tax Base, for the first 300,000 euros, while the remainder is integrated at 100%.

When it is used in the form of regular income. In this case 100% is added to the Personal Income Tax Base.

See FAQs FAQs

What is the difference between a Pension Plan and an EPSV?

Both have similar philosophies and characteristics, but EPSVs can only be contracted by residents of the Basque Country.

When can I access my savings?

Although Pension Plans and EPSVs are designed for retirement, as of 1 January 2015 you can access your savings if your Pension Plan is more than ten years old. Plans opened before this date may be accessed from 1 January 2025, including their returns.

In addition, all Pension Plans and EPSV accounts cover a range of contingencies, such as serious illness of the unit holder or family members, unemployment, disability or dependency.

Does it make sense to invest in a Pension Plan or EPSV if I am still young?

The sooner you start saving, the more capital you will have for retirement. You can start saving with small monthly contributions, increasing them or suspending them whenever you want. In this way, you will have more capital when you reach the retirement age, enjoying tax advantages in the meantime.

How can I receive my savings when I retire?

There are various ways. You can receive your savings as capital or income, in the form of regular income or as guaranteed income. Guaranteed income assures you an interest rate based on actuarial calculations. You can also choose a combination of capital and regular income.

Can I change my decision about how to receive my savings?

Yes, at any time, as long as you are not receiving them in the form of a guaranteed income.

Is there a maximum annual contribution?

Yes, the maximum is the lower of the following amounts: €8,000 or 30% of income from work and economic activities.

Can I have more than one Pension Plan or EPSV?

Yes, you can diversify your savings into as many Plans or EPSVs as you wish.

Can I make transfers between Plans/EPSVs?

You can make as many transfers as you want, without any economic or tax costs. Bankinter offers you Bankinter Pension/EPSV plans, which feature plans with different investment policies, amongst which you can distribute your savings, putting them to work from day one.

Can I transfer my Pension Plans from other entities to Bankinter?

Yes, you can transfer your Pension Plans from other entities to Bankinter, and vice versa. The law establishes a maximum period of five business days for this procedure.

Is it worth investing in a Pension Plan or EPSV if I am only a few years from retirement?

Even if you think it is too late to accumulate a significant amount for your retirement, the tax benefits of pension plans make them one of the most interesting investments for your savings.

Can I sign up for a Pension Plan or EPSV if I am retired?

You can, but, in this case, the Pension Plan you contract would only cover the contingency of death. Unlike other products, you can designate your beneficiaries.

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