Tax-efficient saving at KBC
Pension saving and long-term saving are two tax-efficient ways to set money aside for later in life. Depending on your individual tax situation, you can get tax relief of up to 30% each year on the amount you save. Moreover, there are many situations where you can combine both methods of saving to maximise your tax benefit.
- By means of a pension savings fund or pension savings insurance plan
- Tax relief depends on the amount saved
- Maximum amount qualifying for tax relief: 990 euros or 1,270 euros a year
- Final tax of 8%
- By means of a savings-linked insurance or investment-type insurance product
- Tax relief also depends on income
- Maximum amount qualifying for tax relief: 2,350 euros a year
- Final tax of 10%
- Ability to designate a beneficiary (in the event of your death)
The whats and hows of tax-efficient saving
Tax-efficient saving simply means you can claim tax relief (= a tax reduction) on the amounts you save. This effectively is an incentive from the government to encourage you to save over the long term.
Most people start with pension saving and, if they wish, can supplement it with a long-term savings product. This can be an interesting way to get even more tax relief, to pay for mortgage protection cover and/or to designate a beneficiary for the capital you’ve built up.