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, which date back a few years. Personal income tax deductions, capital gains, how to redeem a pension plan... Let's find out a little more about these tax benefits:
Capital gains on the sale of the primary residence: personal income tax deductions
We will avoid paying personal income tax on the profit obtained from this sale, as long as the following conditions are met:
- We have been living in the property for 3 years.
- If both partners are over 65 years of age, 100% is exempt; if one of the partners is younger, 50% is exempt.
This is a very important tax advantage, as we will save a lot of money on the sale. For those over 65 years of age, the IRPF deductions are a factor to consider.
Capital gains on the sale of other assets
This tax advantage is more generic than the previous one, as it includes: shares, investment funds or other savings products, real estate or other assets. However, to be able to take advantage of it, we must comply with certain conditions requirements, also:
- 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 is taxable).
- Allow a maximum of 6 months after the sale to sign the lease.
As we said a few months ago, the insurance companies are offering annuities at very advantageous conditions. There are even rankings that prove this, and the solvency of companies has been demonstrated during the crisis.
The pension plan and its redemption in the form of a capital sum
When the time comes for the redemption of our pension plan, the key moment is approaching to avoid “screwing up” what we have been saving for so long.
The way the plan is rescued is very important for avoid paying a large amount of tax. Our Savings and Investment Department will try to help you achieve this.
Therefore, we should know that if we redeem the balance of the pension plan in the form of capital corresponding to contributions made prior to 2007, we have a 40% exemption.
However, be careful about recovering the entire pension plan all at once, especially in the same year as your retirement. You have to plan for this moment, as we say.
If you want us to help you redeeming your pension plan or to find the annuity that can offer you the best return, we are here for you, at no cost to you! Write us a whatsapp without obligation and tell us what you need.
