GENERAL INDICATIONS RELATING TO THE TAX SCHEME IN THE REGION OF NAVARRE.

PREMIUM TAX SCHEME

The premiums paid by insured parties for insured pension plans that fulfil the regulatory requirements may be deducted from the IRPF taxable amount, the maximum limit being the lesser of the following two amounts:

  • 30 percent of the sum of the net income from earnings and financial activities received individually during the financial year. This percentage will be 50 percent for taxpayers over the age of 50.
  • 6,000 euro per annum. Nevertheless, for taxpayers over the age of 50, this amount will be 7,000 euro.

This maximum limit is a combined amount for all payments and contributions to pension plan systems.

Regardless of the deduction applied based on the aforementioned limits, taxpayers whose spouse does not obtain any net income from earnings and financial activities, or who obtains less than 8,500 per annum for such income, may deduct from the taxable amount the contributions made to pension plan systems held by said spouse, with a maximum limit of 2,000 euro per annum (these contributions are not subject to ISD).

When the contributions that are deductible from the taxable amount exceed the established maximum limit, the amounts corresponding to said surplus may be deducted in the following five tax years.

Contributions made to insured pension plans in favour of people with a certain level of disability and kinship may also be deducted from the taxable amount, pursuant to the regulatory limits prevailing at any time (these contributions are not subject to ISD):

All the aforementioned deduction limits are combined for the sum of the contributions made by the taxpayer to pension plans, mutual insurance pension plans, insured pension plans, company pension plans and dependency insurance policies.

TAX SCHEME FOR BENEFITS

The benefits received by the beneficiaries of insured pension plans are subject to IRPF, as personal earned income, regardless of whether or not they are survivor or death benefits.

In general, all benefits received are taxed in their entirety, unless any of the following deductions are applicable:

Capital payments

40 percent deduction, provided two years have elapsed since the first contribution.

Capital payments for disability

50 percent, in the case of benefits for partial, total or absolute permanent disability, as well as serious disability.

Benefits for retirement or disability in the form of income:

These deductions will not be applicable to the retirement or disability benefits received in the form of income.

WITHHOLDINGS ON ACCOUNT OF THE TAX

Net earned income derived from insured pension plan benefits are subject to withholding on account of IRPF at the percentage established in each case, based on the personal circumstances of the beneficiary.

THE TAX SCHEME APPLICABLE BOTH TO THE CONTRIBUTIONS AND THE BENEFITS WILL BE THAT PREVAILING AT THE TIME OF THEIR PAYMENT OR RECEIPT.