Fiscally, the annual limit reductions for contributions made to pension plans and pension plans insured is estimated together. Contributions reduce the overall tax base of income tax with a number of limitations. So, you can get a tax savings of up to 43% and up to 42% in Navarra and up to 45% in the Basque country (according to the legislation in January 2007.)
The maximum reduction is the lesser of the following amounts, taking into account that the general tax base can not be negative:
The amount of the contributions (which are limited to 10,000 per year to 50 years and 12,500 euros annually after that age.)
30% of the sum of net income from employment and economic activities received individually in the exercise. After 50 years, this percentage is 50%.
The amounts have not been provided may be reduced over the following five years.
In case of death, beneficiaries are not taxed on the inheritance and gift tax, but the amount they receive is subject to income tax in respect of income from employment.
Currently, individual pension plans can be arranged on-line using the Hotline service.
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