Spain | Spain promotes company supplementary social welfare systems

New public-sector and simplified occupational pension schemes are created, providing tax and social security incentives
Spain | Spain promotes company supplementary social welfare systems
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July 1, 2022

Act  12/2022, of June 30, on the promotion of employment pension schemes has been published in the Official Gazette of July 1, 2022.

This new legislation strengthens second-pillar pension schemes by introducing new public-sector occupational pension funds and simplified occupational pension schemes.

It improves personal income tax incentives on subscribing to social welfare systems to benefit average and low income taxpayers, and it promotes contributions to simplified occupational pension schemes.

It brings the tax regime of Pan-European Individual Personal Pension Products into line with that of the pension schemes.

It grants a new tax credit on corporate income tax for certain company contributions to corporate social welfare systems.

Company contributions to occupational pension schemes enable companies to reduce employers’ social security contributions.

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July 1, 2022