If your home is (almost) paid off and you are looking for a different formula to save taxes, then you should definitely consider saving in the long term. In addition to the formation of additional pension capital, this also offers you a tax reduction of 30% on the amounts deposited.
What is it?
You build up extra capital at retirement age through long-term savings. You do this by investing in a savings insurance policy. This not only offers you a guaranteed interest. If the financial markets and the results of the insurance company permit, you can also receive profit sharing. The latter is viewed annually.
How much can I save?
The amount that you can set aside for this depends on your net taxable professional income. It amounts to 172.80 euros + 6% of that professional income. Anyone with a net taxable income of 28,000 euros can, therefore, pay 1,852.80 euros. There is an absolute maximum of 2,310 euros for 2018. That corresponds to an income of at least 35,620 euros.
How large is my tax benefit?
The deposits you make give you a tax reduction of 30%. Anyone who pays the maximum of 2,310 euros must therefore pay 693 euros less in taxes.
Please note: long-term savings fall in the same basket as the capital repayments of a home loan and the premiums of a balance insurance policy. If the basket of 2,310 euros has already been filled with this, long-term saving will not result in an additional tax reduction. It is therefore generally advised to wait until after the repayment of your loans.
When can I request my capital?
When your 55 th starting with long-term savings, you can use the funds without tax penalization Retrieval 65. If you start after your 55th birthday , your savings plan must run for at least 10 years.
However, requesting your credit at the age of 65 or after at least 10 years is not an obligation. In contrast to traditional pension savings, you can save even further after your 65th birthday or after your retirement. The only condition is that you still have professional income at that time.
How am I charged?
If you started with the long-term savings for your 55th, the insurer will be on your sixtieth birthday on the accrued capital hold off an anticipatory tax of 10%. This only takes into account the guaranteed interest. The profit sharing that you received are exempt from taxes.
If you only started after your 55th birthday , the tax will be levied on the tenth anniversary of your savings plan.
You continue to enjoy the tax deductions on the deposits you make after the tax has been levied, even though you will no longer be taxed on it later. Saving further after your sixtieth becomes extra interesting.
Avoid calling up your credit early. If you do so, you will have to pay 33% taxes instead of the preferential rate of 10%.