Reductions for pension contributions and payments are, in general, limited to the lower of:
- 30% of net income from employment and economic activities received individually during the financial year.
- 1,500 euros annually. This limit is increased by the following amounts:
1). By 8,500 euros per year if it comes from employer or employee contributions to the same pension instrument for amounts equal to or less than those shown below, depending on the employer's annual contribution:
500 euros or less.
The result of multiplying the employer contribution by 2.5.
Between 500.01 and 1,500 euros.
1,250 euros plus the result of multiplying the difference between the employer contribution and 500 euros by 0.25.
More from 1,500 euros.
The result of multiplying the employer contribution by 1.
A multiplier of 1 is applied when the employee's net income from work in the year is more than 60,000 euros from the employer making the contribution. Amounts contributed by the company resulting from decisions by the worker are considered contributions by the worker.
2). By 4,250 euros per year, provided that this increase is from contributions by self-employed workers or sole traders to simplified employment pension plans for self-employed workers/sole traders, or from contributions by individual entrepreneurs or professionals to employment pension plans of which they are promoters and unit holders.
The maximum reduction applied for the increases in points 1) and 2) above will be 8,500 euros per year. An additional 5,000 euros per year for collective long-term care insurance premiums paid by the company.
In the case of spouses, the maximum contribution limit with the right to reduction based on contributions to social security schemes where the spouse is the holder (provided they do not obtain net income from work or economic activities or this income does not exceed 8,000 euros per year) is 1,000 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 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.