A crucial warning for retirees
The Tax Agency has issued a significant alert that affects pensioners who have redeemed their pension plan during this year or who plan to do so soon. This communication is essential to avoid unpleasant surprises when filing their 2025 income tax return.
Understanding the obligation to declare
The process of redeeming a pension plan involves adding the money obtained to the public pension. The Treasury considers these amounts as income from multiple sources of payment, a factor that modifies the usual thresholds that determine whether filing an income tax return is necessary.
Conditions for declaration
If you receive income from a single payer, such as the public pension, you do not need to submit the declaration if the annual income does not exceed 22,000 euros. However, if the income comes from two or more sources, the situation changes markedly.
If the sum of the income of these payers, including the pension plan, exceeds 1,500 euros per year, the obligation to declare is activated, as long as the total annual income is greater than 15,000 euros. This means that many pensioners who decide to cash out their plans could find themselves with this new tax liability.
How taxation affects pension plan redemption
It is essential to remember that amounts recovered from a pension plan are considered work income, just like the public pension. This can increase the taxable base, thus raising the corresponding tax rate, and therefore, increasing the amount to be paid in the tax return.
Rescue options and tax planning
Pensioners can choose to redeem their pension plans in whole or in part. The manner in which this rescue is carried out can have significant tax repercussions. For this reason, the Treasury advises consulting with a tax advisor before making decisions that may influence the declaration.
For those retirees who are considering withdrawing their plans, it is essential to add the amount of public pension with what they expect to obtain from the pension plan. This sum will allow them to determine whether the established limits are exceeded.
Additionally, spreading the redemption over several tax years can result in greater tax savings. A tax advisor can help design a plan that minimizes the tax impact.
A reassuring message
The Treasury emphasizes that the objective of this notice is not to generate alarmism, but to ensure that pensioners are well informed about their tax obligations and can manage them without problems.
