As we usually say, we must try to take advantage of the few tax benefits that the Treasury and the Government allow us. Today we are going to focus on the three most important ones for people over 65 years old, which date back to a few years ago. Personal income tax deductions, capital gains, how to redeem a pension plan? Let’s learn a little more about the tax advantages:
Capital gains on the sale of the principal residence: personal income tax deductions
We will avoid paying income tax on the profit obtained from that sale, provided that the following conditions are met:
- We have been living in the property being sold for 3 years.
- If both members of the couple are over 65 years of age, 100% is exempt; if one of the two is younger, 50%.
This is a very important tax advantage, since we will save a lot of money on that sale. For those over 65 years of age the IRPF deductions are a factor to consider.
The capital gain on the sale of other assets
This tax advantage is more generic than the previous one, since it includes: shares, investment funds or other savings products, real estate or other patrimonial elements. However, in order to take advantage of it, we must also meet certain requirements:
- Reinvest the profit in a life annuity (ask us for information, we have the highest yields among the different entities).
- The exemption is limited to €240,000 (the amount exceeding this amount must be taxed).
- Allow a maximum of 6 months after the sale to sign the lease.
As we said a few months ago, insurance companies are offering life annuities under very advantageous conditions. There are even rankings that prove it, and the solvency of the companies has been demonstrated during the crisis.
The pension plan and its redemption in the form of a capital sum
When the time comes to redeem our pension plan, the key moment to avoid “screwing up” what we have been saving for so long is approaching.
The way to redeem the plan is very important to avoid paying a large amount of taxes. From our Savings and Investment Department we try to help you to achieve it.
For this reason, we should know that if we redeem in the form of capital the balance of the pension plan that corresponds to contributions prior to 2007, we have a 40% exemption.
However, be careful with recovering the entire pension plan all at once and, especially, the same year of your retirement. You have to plan for this moment, as we say.
If you want us to help you to redeem your pension plan or to find the life annuity that can offer you the best profitability, here we are, at no cost to you! Write us a whatsapp without obligation and tell us what you need.
