Once the stage of retirementpeople not only have more freedom when it comes to allocating their time to what they like most, but they can also enjoy different benefits when it comes to paying taxes. Tax authorities. Once the work activity has ended, the over 65 years you will be able to enjoy your pension without having to pay certain taxeswhich will relieve your pocketbook and the tax return process.
One of the greatest advantages of turning 65 is being exempt from paying personal income tax in case of selling the residence in which one has habitually lived for at least three years. All the money received from the sale, that is, the capital gain, will be tax-free and This will not be required to be reinvested in another home or property. While the rest of citizens must allocate between 19% and 28% to pay personal income tax on the benefit obtained.
On the other hand, if the home you want to sell is not your habitual residence, but is a second property or even shares, taxes should not be paid as long as their profit be reinvested in a life annuity that acts as a complement to the pension. All this provided that the assets obtained does not exceed 240,000 euros.
Mutual members will be refunded part of the taxes they paid during their working life
Another of the great benefits for retirees is focused on those who dedicated their work day in sectors such as education, construction, banking, metallurgy, fishing, shipyards, electricity companies and other members of the public service. The so-called mutualists can request a pension upon turning 60as long as they have contributed for a minimum of 30 years.
Likewise, those mutualists who have practiced their profession before 1978 They will be able to recover part of the taxes they paid to the Treasury during their working life. Are returns will be carried out during the campaign of the income tax return of this year, which ends on June 30, and you will be eligible for a reduction of the 25% on the portion of your pension that corresponds to said contributions. According to data provided by the Tax Agency, this has translated into an average of 2,686 euros to each pensioner.
Which pensioners will have to file the 2026 Income Tax Declaration?
The tax return campaign began on April 8 and will be open electronically until June 30. However, some retired people are exempt from carrying out this process depending on the annual pension they have received. According to this criterion, only must carry out this procedure those who perceive a pension equal to or greater than 22,000 euros per year and there is only one payer.
Those pensioners who receive 16,876 euros per year in case they exist two payers and the second payer contributes 1,500 euros per year or more; those who receive a foreigner’s second pensionsince it is considered a second payer; and those who have a pension plan that allows them to recover part of their capital and whose amount is 22,000 euros per year or higher.