Savings insurance has no immediate tax advantages when hired. However, upon receiving the benefit they have a very interesting taxation.
Savings insurance combines receiving capital or income derived from the premium and also compensation for the possible death of the holder. These are guaranteed products where the capital contributed presents no risk unlike other investments.
Taxation in savings insurance
As we have indicated previously, when hiring savings insurance , we do not receive any tax advantage.
It is at the moment that benefits derived from insurance are received when taxation becomes interesting. To understand how this taxation works, we must first understand that it will depend on the way in which we receive the benefit. It will also depend on who receives this benefit . Review, for example, the taxation of the Insured Pension Plans and do not forget the taxation of life insurance either.
When we are going to receive a benefit derived from savings insurance, we must make an important decision: how we will receive our money . This decision is important both economically and fiscally. Depending on the perception model we choose, the ways to pay the personal income tax are derived.
In any case, we must keep in mind that, regardless of how we receive the benefit, we will only ask for the return on movable capital . In other words, we will pay taxes on the interest that the money has generated within the insurance.
We distinguish three ways of accessing savings insurance benefits , each with its own characteristics.
When we receive the contribution in a single payment, we access all the money that we have contributed in the product plus the interests in a single time. Taxation is carried out on the yield generated:
- Taxation of 19% on returns when they are less than € 6,000.
- Taxation of 21% on returns when they are between € 6,001 and € 50,000.
- Taxation of 23% on returns when these are greater than € 50,000.
Lifetime income benefit
When you access the contributions plus profitability of the savings insurance in the form of annuity, it will be taxed by a percentage of the returns, depending on the age of the holder. This would be the picture:
As we can see in this case the tax exemption can take up to 92%.
Temporary income benefit
Temporary income has a different taxation than annuities . The performance of movable capital is the result of applying the following percentages to each annuity:
- 12% when the rent has a duration of 5 years or less.
- 16% when the rent lasts between 5 and 10 years.
- 20% when the rent lasts between 10 to 15 years.
- 25%; when the rent lasts longer than 15 years.
The longer the perception of the benefit lasts, the higher the percentage of taxes that must be paid for it.
Heirs or beneficiaries taxation
When the benefits are received by a beneficiary or heir, they will be taxed in inheritance and donation tax. In that case, taxation will depend on the autonomous community in which it is taxed.