Instrumentation
Long-Term Savings Plans can be implemented in two ways:
a. Individual Life Insurance
The Individual Long-Term Savings Insurance (SIALP) is configured as an individual life insurance different from those provided for in article 51 of this Law (social security systems: pension plans, mutual social security funds, insured pension plans, company social security plans and private insurance that covers exclusively the risk of severe or great dependency), which do not cover contingencies other than survival or death, in which the taxpayer himself is the contractor, insured and beneficiary except in the case of death.
The contract terms and conditions shall expressly and prominently state that this is an Individual Long-Term Savings Insurance and its acronym (SIALP) is reserved for contracts signed after 1 January 2015 that meet the requirements set out in this Law.
Long-Term Savings Plans can be implemented through one or successive Long-Term Individual Life Insurance Plans.
b. Deposits and financial contracts
Long-Term Savings Plans can also be implemented through deposits and financial contracts integrated into the so-called Individual Long-Term Savings Account .
The Individual Account Long-Term Savings (CIALP) is configured as a money deposit contract entered into by the taxpayer with a credit institution, against which one or more money deposits may be made, as well as financial contracts as defined in the last paragraph of section 1 of article two of Order EHA/3537/2005, dated November 10, which develops article 27.4 of Law 24/1988, dated July 28, on the Securities Market, under the conditions of which it is provided that both the contribution and the settlement at maturity will be made in all cases exclusively in money.
Please note that the reference to article 27.4 of Law 24/1988, of July 28, on the Securities Market, should be understood as currently being made to article 37.6 of Royal Legislative Decree 4/2015, of October 23, which approves the revised text of the Securities Market Law ( BOE of the 24th).
The financial contracts defined in the last paragraph of section 1 of article two of Order EHA/3537/2005, dated 10 November, are contracts not traded on official secondary markets through which a credit institution receives money or securities, or both, from its clients, assuming a repayment obligation consisting either of the delivery of certain listed securities, or of the payment of a sum of money, or both, depending on the evolution of the price of one or more securities, or on the evolution of a stock market index, without any commitment to repay the principal in full.
These deposits and financial contracts must be contracted by the taxpayer with the same credit institution in which the Long-Term Individual Savings Account was opened. The returns will be compulsorily integrated into the Individual Account and will not be computed towards the limit of 5,000 euros to which we refer in the section on characteristics and requirements of the Long-Term Savings Plans.
The Long-Term Individual Savings Account must be uniquely identified and separated from other forms of taxation. Likewise, deposits and financial contracts included in the Account must contain a reference to the latter in their identification.
The contract terms and conditions shall expressly and prominently state that this is a Long-Term Individual Savings Account and its acronym (CIALP) is reserved for contracts entered into after January 1, 2015, which meet the requirements set forth in this Law and shall include deposits and financial contracts entered into after that date.