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Practical Income Manual 2020.

Features and requirements

a. Number of plans per taxpayer

A taxpayer may only be the simultaneous holder of a Long-Term Savings Plan (insurance or account), without prejudice to the possibility of mobilizing the economic rights of individual long-term savings insurance. term and of the funds constituted in individual long-term savings accounts from one Plan to another.

b. Opening and extinction

  • The opening of the Long-Term Savings Plan will occur at the time the first premium to the Individual Long-Term Savings Insurance (SIALP) is paid, or Make the first contribution to the Individual Long-Term Savings Account (CIALP), as appropriate.

  • Termination , at the time the taxpayer makes any provision or fails to comply with the maximum limit of annual contributions.

    For these purposes, in the case of Individual Long-Term Savings Insurance, it is not considered that provisions are made when upon expiration, the insurance company allocates, by order of the taxpayer, the full amount of the benefit to a new Individual Long-Term Savings Insurance. Long-Term Savings contracted by the taxpayer with the same entity.

    In these cases, the contribution of the benefit to the new insurance will not count for the purposes of the limit of 5,000 euros indicated in the following section, and for the calculation of the 5-year period provided for in article 7.ñ) of the Law of Personal Income Tax For the application of the exemption from positive returns on movable capital, the first premium paid for the first insurance for which the contributions to the Plan were implemented will be taken as a reference.

c. Maximum contribution

Contributions to the Long-Term Savings Plan cannot exceed 5,000 euros per year in any of the Plan's years of validity.

If this amount is exceeded in any of the years, the right to exemption is lost.

d. Form of perception

The taxpayer's disposition of the capital resulting from Plan may only occur in the form of capital, for the total amount thereof, and it is not possible for the taxpayer to make partial dispositions.

e. Insured capital

The insurance entity or, where applicable, the credit institution, must guarantee to the taxpayer the receipt at the expiration of the individual life insurance or at the expiration of each deposit or financial contract of, at least a capital equivalent to 85 percent of the sum of the premiums paid or the contributions made to the deposit or financial contract.

Notwithstanding the above, if the aforementioned guarantee is less than 100%, the contracted financial product must have a maturity of at least one year.