Thousands of retirees can claim money from the Treasury: these are the requirements
The compensation is aimed at pensioners who made contributions to a mutual insurance company during their working life.
BarcelonaIn the middle of the campaign of the this year's income tax returnThe Ministry of Finance has announced that retirees who paid more personal income tax than they should have will receive the compensation they are owed. Specifically, the measure is aimed at those pensioners who made contributions to a mutual insurance company during their working life. They must declare their earned income on their tax return. The goal is to avoid double taxation on contributions they made in the past. Tax authorities The Spanish government will pay what it owes these pensioners in 2025 in a single payment. As announced by the Minister of Finance, Maria Jesús Montero, the measure will have an impact of €6 billion.
Who can receive the personal income tax compensation?
Pensioners who made contributions to mutual funds before January 1, 1999, can apply this reduction. However, the reduction varies depending on the date of these contributions and the type of mutual fund. If the contributions were made before January 1, 1967, the corresponding portion of the retirement benefit will be reduced by 100%. That is, this portion of the pension will not be taxed. If contributions were made between January 1, 1967, and December 31, 1978, the personal income tax refund will be lower, and only 75% of this portion of the pension will be taxed.
If contributions were made to mutual funds replacing Social Security management entities before 1979, it is also possible to obtain a reduction in the income tax return. In this case, only 75% of the pension derived from these contributions will be taxed.
How to make a claim to the Treasury?
For Personal Income Tax (IRPF) for 2024 and subsequent years, the procedure will be automatic. If the Tax Agency has all the information, the reduction will appear in the tax data for each year under the heading "Adjustment for Mutual Societies - DT2 LIRPF." The adjustment will be automatically applied to the Personal Income Tax return. For processing Personal Income Tax refund applications for 2019 to 2022 and prior years not yet expired, the following procedure applies: a new application form must be submitted Available on the Tax Agency's website. You have until June 30th, the closing date of this year's tax return campaign.