Every day more people look for financial products that help them save and increase their wealth given the uncertainty that affects the stability of the pension system in Spain.
For this reason, at Euroteide Seguros, we not only offer life, car or home insurance; but we complement our catalog with financial products like SIALP.
Few people know what SIALP is and what its benefits are. In this article we are going to give you all the information you need to know about SIALP in order to get the most out of this product. Surely when you know more, you will not hesitate for a moment to hire.
What is SIALP?
Individual long-term savings insurance are the initials of the word SIALP. Now that we know what this word means, it is time to give more information about this product. But first I want to make it clear that on many occasions it is also known as Savings Plan 5.
SIALP is a long-term savings plan that it has good taxation, which means that little by little the product is awakening the interest of people who want to save and thus be able to save a little when making the income statement.
SIALPs came onto the market after the last modification of the tax reform that occurred on January 1, 2015. The objective of this product has always been and continues to be that of being an extra saving alternative for small and medium-sized savers. With this product you can not only save and make money profitable, but you can also deduct the payment to the farm. All this makes many people are interested in this product.
Differences between SIALP and CIALP
When contracting this type of products, it must be taken into account that both products are the same except for one small detail. SIALP is life insurance that comes with a small risk life capital, while CIALP is an account marketed through a bank.
What is the taxation of a SIALP?
In order to enjoy all the tax benefits that a SIALP offers us, we must be clear that the product must be contracted for at least 5 years. If the contracting period is less than that time, all the tax benefits that we have been obtaining so far are lost and, consequently, accounts will have to be made with the treasury. This detail must be taken into account if the investment objective is to achieve good taxation.
If the minimum validity period of the SIALP is not met, then we will have to pay taxes. Rest assured, you will not have to do it for everything, you will only have to pay taxes on the capital gains you have obtained until the time of cancellation. These capital gains will always have to be taxed as a return on movable capital.
Depending on the capital gains obtained, the taxation will be higher or lower. We show it to you below.
- Up to 6000 euros: 19%
- From 6000 to 50000 euros: 21%
- More than 50000 euros: 23%
I want to make it clear that through the SIALP it is not possible to deduct what is contributed through the personal income tax base, contrary to what happens through a PPA or a pension plan.
If we rely on the law, we can see how to meet a series of requirements through which we can hire a SIALP:
- The policyholder, the beneficiary and the insured must always be the same person.
- You cannot contribute more than 5000 euros a year.
- The insurer must commit to guarantee at least 85% of the capital invested to reduce the risk of the product.
- You can only hire a single SIALP, that is, you can never hire more than one at a time.
- The insurer has to allow the rescue of SIALP in case the investor wants it.
It does not matter if the redemption is total or partial, the insurer has to offer this option. We must remember that we are talking about insurance that is liquid, which is why it has to offer liquidity at all times. Yes, many insurers usually impose a minimum period to redeem SIALP. Usually it is usually one year, but it will depend on what was agreed upon when hiring it.
The SIALP holder must have an account in his name. In that account, the appropriate amortizations will have to be made and in that same account the money will be deposited once the holder requests the rescue of the SIALP.
It's important to put attention on a SIALP can be transferred to another SIALP. You just have to ask the receiving insurer that intention and it will take care of the whole process. This is possible thanks to the right of mobilization, which is present in other savings products such as investment plans.
As you have seen, SIALP is a very interesting product and a great option to diversify your savings. If you want to know more details or have any questions, You can consult us through any contact method listed here.