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Insurance is one of the most hired by Spanish products and their modality may in certain cases Remove tax on the tax return.

Home insurance and mortgage-related

Within the deduction for purchase of residence is life insurance linked to mortgage.

Life insurance linked to mortgage have a percentage of personal income tax relief, this deduction includes the possibility of elimination of up to 15% of the amounts for the purchase of residence for a maximum base of 9,040 euros provided the housing has been acquired before 1 January 2013.

In the event that the signing of the mortgage also includes the obligation to sign a life insurance, it is possible in certain situations cancel. The bonus money can be added to the mortgage payment to calculate the basis of the deduction.

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Life insurances

In many cases, life insurance is often necessary to access a mortgage requirement. Premiums paid on a monthly basis have no tax benefits or rebates, although they have called Insured Pension Plans (PPA).

It is important to differentiate if the policyholder and the beneficiary are the same person. If they are different people, we must reflect on the inheritance and gift tax. If instead it is the same person, we must enter it in the personal income tax.

When policyholder and beneficiary are different people will be taxed on inheritance and gift tax. It collects tax exemption if the beneficiary is a spouse, an ascendant or a descendant of up to € 9,195.49 heir in general, an amount that depends on each region, since this is a tribute given to autonomy.

In the event that the policyholder and beneficiary are the same person, the insurance will pay an amount when a certain age is reached. If that amount is collected in a lump sum, a similar tax and a tax base to other financial products it is applied.

0-5999 € between the tax rate shall be 21%
Between 6,000 € and 24,000 € tax rate will be 25%
From € 24,000 the tax rate is 27%

The benefit is obtained by subtracting the capital raised premiums paid. In addition, the insurer shall withhold income tax of 19% on performance.
If the amount is seen as income, similar to investment income tax applies, a taxable savings of 19%