How is the taxation in the benefits?

How is the taxation in the benefits?

The charge of the benefits of pension plans/EPSV pay taxes for the tax of PERSONAL INCOME TAX as earned income. These benefits increase the General Tax Basis of PERSONAL INCOME TAX, increasing the imposed to the marginal type.


The ways of rescue the pension plans are: 

  • Capital: in an only charge, good simultaneous or procrastinated at once of the retirement
  • Financial income: several periodic payments, in which the payee decides the amount and the frequency of the same (monthly, quarterly, half-yearly). The income financial is reversible, this means that at any time the payee be able to decide charge the amount pending.
  • Mixed: doing at the same time the two previous.
  • Payments without regular frequency.


In the case of first benefits in the shape of capital, owe distinguish between:

  • Consolidated Rights from contributions prior to the 01/01/2007: provided that have elapsed more than two years from the first contribution (in the case of retirement), have a reduction of 40% as a result of tax payment in the PERSONAL INCOME TAX of the exercise in which perceive.
  • Transitional arrangement: From the January 1, 2015, for be able to practice this exemption, the Payee owe charge the benefit during the calendar year in which happens the contingency that gave place to the benefit or in the two next calendar years. For those contingencies happened before January 1, 2015, have established other terms:
Year in which happened the contingency Maximum term for charge with reduction
2010 or previous December 31, 2018
2011 December 31, 2019
2012 December 31, 2020
2013 December 31, 2021
2014 December 31, 2022


  • Consolidated Rights from contributions subsequent to the 01/01/2007: not have reduction some and pay taxes integrally as Earned income in the PERSONAL INCOME TAX of the exercise in which perceive.

The benefit encashed in the shape of income not has reduction some and pays taxes integrally as Earned income in the PERSONAL INCOME TAX of the exercise in which perceives.

In the case of participants with disability, the rescues in the shape of income enjoy an exemption of 3 times the PUBLIC INDICATOR OF MULTIPLE EFFECT INCOME (Public Indicator of Income of Effects Multiple).

 

Fiscal residence in Álava, Vizkaya and Gipuzkoa

As rule of thumb, make up in the basis of assessment of the tax 100% of benefits in the shape of capital of employee pension plans social and pension plans. But if this benefit perceives in the shape of capital having elapsed more than 2 years from the first contribution, except in the case of benefits for disability or premise, the amount to make up in the general basis of assessment of the Tax be 60% (with the limit of 300,000 euros) of the first perceived benefit by every contingency.


The benefit encashed in the shape of income not has reduction some and pays taxes integrally as earned income in the PERSONAL INCOME TAX of the exercise in which perceives.


In the case of participants with disability, the rescues in the shape of income enjoy an exemption of 3 times the MINIMUM WAGE (Minimum Wage).

Fiscal residence in Navarre

The first encashed benefit in the shape of  capital  have a reduction of 40% on the contributions carried out  until the 12/31/2017 , provided that have elapsed more than two years from the first contribution. 

For apply this reduction foresees the next transitional arrangement:

Year in which happened the contingency Maximum term for charge with reduction
Until 2017 Until the 12/31/2020
2018 or subsequent Until the 31/12/year contingencia+2 years

In the case of benefits for the contingency of perceived permanent disability in the shape of capital make up to 50% without fulfill a period of lack.

The benefit encashed in the shape of  income  not has reduction some and pays taxes integrally as Earned income in the PERSONAL INCOME TAX of the exercise in which perceives.