What makes our Occident Pensiones Colectivo plan different
With Occident Pensiones Colectivo for companies, your employees can have extra capital when they retire to complement their pay and your company will have attractive tax advantages while allocating a financial sum to improve its future.
Taxation and returns on company pension plans
Taxation for companies
- Reduction of the taxable income for Corporation Tax
- No Personal Income Tax withholding is applied even if it is in the Social Security contribution base.
Taxation for the employee
The employee can make contributions up to a maximum of €8,500.
These limits are joint for employee contributions and business contributions to the following products:
- Pension plans.
- Insured party pension plan (PPA).
- Company pension plan.
- Dependency insurance.
- Insurance policies taken out with mutual societies.
Important: The participant may deduct from their income (taxable income) the total amount of the contribution they make, up to a limit of 30% of the sum of net income from work and economic activities received individually, as long as this does not result in a negative taxable income.
In this case, this excess can be used to reduce the tax base for the following five years with the same limit.
Performance
The performance of an employee pension plan will depend on the returns on the assets in which the plan is invested. Based on the fund's investment policy, the fund will invest in money market assets, fixed income (debt), equities or a combination of these.
Performance
| Plans | Start date | Effective date | Current return | APR 1 year | APR 3 year | APR 5 year | APR 10 year | APR 15 year | APR 20 year | Historical APR since the beginning |
|---|---|---|---|---|---|---|---|---|---|---|
| OCCIDENT PENSIONES COLECTIVO, PLAN DE PENSIONES | 28/11/2006 | 09/10/2025 | 33.79% | 4.77% | 2.71% | 2.54% | 1.89% | 1.5% | 0% | 1.56% |
Net asset value
| Plans | Effective date | Net Asset Value |
|---|---|---|
| OCCIDENT PENSIONES COLECTIVO, PLAN DE PENSIONES | 09/10/2025 | 13.37937 |
FAQs
If you have planned well, it is always advisable to receive a regular income. If you need to collect all the capital at once to save on tax, it is preferable to collect it in the year after retirement. This means that in the year in which you receive it, your income is lower than when you were working and therefore has a positive tax effect.
To integrate the benefits received into the taxable income base for Personal Income Tax purposes, it must be taken into account that both the benefits that are materialised in the form of capital, such as those that are collected in the form of a temporary or life annuity or in the form of a payment without regular intervals, the amount will be included annually in the taxable base of the beneficiary as the full return on the work.
Where benefits are in the form of capital, contributions made up until 31 December 2006 are eligible for a 40% reduction, as long as more than 2 years have elapsed between the first contribution and the receipt of the benefit. When it is made in mixed form, the provisions of the previous paragraphs will be applied.
Regardless of who the recipient is of the contingency giving rise to the payments or how the plan is paid out, all benefits provided by a pension plan are deemed to be earned income.
If the benefit of a pension plan is received by a person other than the participant as a result of the death of the beneficiary, the tax applied is also personal income tax as earned income and is exempt from inheritance and gift tax.
Yes, employees can make voluntary contributions to the plans taken out, always within the limit laid down in the regulations in force.