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Practical manual for Income Tax 2024. Part 1

8. Pan-European Personal Pension Products

Regulations: Additional Provision Fifty-Second of the Law PIT

To the pan-European individual pension products regulated in Regulation (EU) 2019/1238 of the European Parliament and of the Council of 20 June 2019 on a pan-European personal pension product shall apply to them in the PIT the treatment appropriate to pension plans.

In particular:

  1. The contributions of savers to pan-European individual pension products may reduce the general tax base under the same terms as those made to pension plans and will be included in the joint maximum limit provided for in Article 52 of the Personal Income Tax Law and for social security systems.

  2. Benefits received by beneficiaries of pan-European individual pension products will in all cases be considered as work income and will not be subject to inheritance and gift tax.

  3. If the taxpayer has rights of economic content derived from contributions to pan-European individual pension products, in whole or in part, in cases other than those provided for in the regulations on pension plans and funds, he or she must replace any reductions in the tax base that were unduly made, by means of the appropriate supplementary self-assessments, including late payment interest. Any amounts received that exceed the amount of regularized contributions will be taxed as employment income in the tax period in which they are received.