However, these bonuses from these entities are, in many cases, a poisoned gift.
Table of Contents
The fine print of pension plan gifts
Taxation of gifts and bonuses
Deadline requirements
Maximum gift limits
The fine print of pension plan gifts
Entities obtain up to 80% of contributions to pension plans in rich people phone number data the last months of the year. One of the main attractions of these products is the gifts and bonuses they offer for transferring the plan to their entity. Many savers rush to invest in them without taking into account the small print, which, however, can make a significant difference.
Taxation of gifts and bonuses
Both gifts and bonuses offered by financial institutions are subject to personal income tax. The Tax Agency reminds that the amount of the gift received by a bank client “is considered for tax purposes as income from movable capital, subject to taxation and payment on account of 15%”.
As for bonuses, since they are a type of interest paid in cash to the new client, they will be taxed like the rest of the income from movable capital. Consequently, you will have to pay the taxes corresponding to the taxable base of the savings.
Download Pension Plans Guide
Deadline requirements
Typically, entities that offer bonuses and gifts have, in return, requirements for permanence that may be more or less onerous.
In many cases, entities require that the money be kept in the pension plan for at least 12 or 24 months. During this period, the savings cannot be transferred to another pension plan and, if it is transferred, a penalty will be applied that would completely nullify the value of the gift.
Maximum gift limits
Institutions apply a bonus of up to 10% for transferring a pension plan. However, these bonuses are often misleading, as they set a maximum limit on the amount of money to be awarded.
For example, if an entity applies a 10% bonus for the entire plan to be transferred, but at the same time establishes a maximum limit of €500, a saver who transfers €10,000 will only receive €500, and not the €1,000 that they would initially have to pay.
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