SIALP (stands for Individual Insurance of Long Term Savings in Spanish) is a new way of savings approved by Spanish Law in 2014, which keeps the saver exempt from taxation if the product is kept for five years; with a maximum contribution limit of 5,000 euro.
With a small periodic contribution, you may build a nest egg for the future and benefit from tax advantages at the same time.
The conditions which apply to this new way of savings are:
- By Law every customer can only hold simultaneously a SIALP/ CIALP product, but it can be passed from one to another (CIALP stands for Individual Account of Long Term Savings in Spanish; it is only provided by banks, not by insurance companies).
- Contributions cannot exceed € 5,000 a year.
- The Spanish Law prescribes that the customer has to recover at least 85% of his/her money.
- Policy-holder, Insured and survival Beneficiary has to be the same person.
- The savings-investment should remain at least for five years; in order to benefit from the tax advantages, the proceeds at maturity must be taken in the form of capital.