Spain allows the early provision of pensions before COVID-19

The crisis situation due to COVID-19 has caused the early disposition of the pension plan

Given the economic and social impact that the Coronavirus has caused, many Spanish citizens have decided to have their pension plan in advance. However, they may only resort to this resource:

  • The unemployed as a result of a temporary employment regulation file (ERTE).
  • Business owners of establishments whose opening to the public has been suspended.
  • The self-employed who have been forced to cease their activity.

These three sectors will be able to collect their pension plan until September 14th. However, it should be borne in mind that those contributions made before 2007 have a reduction in personal income tax, although with some limitations. Therefore, applicants may receive the following amounts:

  • In the case of workers included in an ERTE, the amount of the wages they stop receiving while the validity of said file is maintained.
  • In the case of business owners, the estimated net income that they cease to receive while the suspension of opening to the public is maintained.
  • In the case of the self-employed, the estimated net income that they cease to receive while the health crisis situation continues.

 B Law & Tax
International Tax & Legal Advisors

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Tags: Coronavirus, Self-employed, Personal Income Tax, ERTE, Advance provision, Pension plan, Employers