A stable future paying less taxes

During our lifetimes, we pass through circumstances which make us reflect on our future.

How can I maintain my current level of life?

How can I guarantee the stability of my family?

How much will it cost to educate my children?

The only answer to these questions comes by using prevention systems, an alternative offered by Liberty Seguros that allows us to be more confident about our future.

There are various types of life insurance

Death

Different types of policies that give a payout of capital, a pension or can cover the cost of a funeral and inheritance costs.

Savings

We can also offer savings plans or pension plans, which allow you to receive a payout or monthly payments. This prevention system, apart from giving us peace of mind, also allows us to reduce the taxes that we pay in the annual tax returns.

So if the savings are paid out in 5 years or less, then you are 88% exempt from tax. If taken between 5 & 10 years, then it is reduced to 84%; between 10 & 15 years the reduction is 80% or if for more than 40 years then it's 75%.

We can also offer you a savings plan to secure your child's future at university!

Pensions also have an exempt amount:

If less than 40 years of age it's 60%; between 40 & 49 it's 65%; between 50 & 59 it's 72%; between 60 & 65 76%; between 66 & 69 it's 80% and over 69 it's 92%

PIAS Savings plans

These cannot be touched for at least 5 years. You cannot pay in more than 8000€ a year under the current tax laws. The amount paid during the whole life of the product may not exceed 240.000€. By keeping a PIAS for more than 5 years, it is exempt from tax.

Amounts paid into a Pension plan or a Prevention plan reduce the tax base in the annual tax return, the annual limit for payments into either is 8000€. Funds paid in to a prevention plan or Pension plan cannot be taxed until you start to receive the funds.

What next?

Get in touch with Tenerife International Business Centre SL - we can advise you on what plan would suit your individual needs. If you think you need an "MOT" on your paperwork and have any questions regarding paying the right taxes, having the right Will or any other fiscal matter, we can offer you a Document Health Check which is free of charge!

TIBC SL are exclusive agents for Liberty Seguros Expatriates, you may also wish to read about our great insurance covers available throughout the Canary Islands for car insurance, house insurance, pet insurance, commercial insurance and community insurance.