How to Maximize Tax Deductions with Life Insurance: Tips for Spanish Taxpayers in 2024

From last April 3, the date on which the 2024 revenue campaignSpanish taxpayers are able to present the declarations related to the document electronically the fiscal year of the previous yearin this case that 2023. Annual meeting with which citizens update their financial situation with the Tax Agency.

At the moment, many doubts about what can and cannot be produced in the proof, with the aim of making the result more favorable. The Standard housingwith donations and contributions made to non-profit organizations, for job performance or by investing in companies, some of the most frequent.

Insurance, which covers a wide range of sectors, is also among the options from which deductions can be made if certain requirements are met. About life insuranceit is important to know which policies will get you tax benefits, because it is not possible in all cases.

Types of life insurance that provide tax relief

If the life insurance related to a mortgage loanthe output can be increased up to 15% Of the amounts allocated to buy a house, the limit is set at 9,040 euros per year. To do this you would need to mark the mark boxes 698 and 699. In fact, it only applies to mortgages signed before 1 January 2013.

If life insurance is linked to savings plans, installments can be made insured pension plans (PPA), without the need to be tied to a mortgage. These are taxed in the same way as pension plans and premiums are automatically deducted in the personal income tax base. can be taken out up to 8,000 euros of contributions to the plan over the maximum up to 30% of working income of the insured. You had to mark the mark box 492 And the next.

Life insurance is linked to a mortgage loan, insured pension plans or self-employed plans, they deduct taxes

Regarding the standard life insurancethose that do not include any savings plan, it cannot be taken out, except for self-employed people, as the Department of Finance considers it to be a deductible expense as it is linked to the performance of the professional activities of self-employed workers. The restriction is set at 500 euros, although the figure may increase to 1,500 euros for self-employed people with disabilities. The box 200 This is the one that needs to be highlighted in this case.

From last April 3, the date on which the 2024 revenue campaignSpanish taxpayers are able to present the declarations related to the document electronically the fiscal year of the previous yearin this case that 2023. Annual meeting with which citizens update their financial situation with the Tax Agency.