Pension Plans for Autónomos: Deduct Up to 5,750 EUR

A pension plan for autónomos has done more than shrink the retirement gap since 2022, it also has an immediate effect on your income tax. Since Ley 12/2022, self-employed workers in Spain can pay up to 5,750 EUR a year into retirement savings products and deduct it from their IRPF tax base. A Plan de Pensiones de Empleo Simplificado (PPES) is a simplified occupational pension plan that professional associations offer specifically for autónomos, on top of the classic private plan. How much you can actually deduct, which providers are worth considering, and which deadline to keep in mind, all follow below.

At a glance

Since Ley 12/2022, autónomos can pay up to 5,750 EUR a year into private and occupational pension plans, capped at 30 percent of net income. The Plan de Pensiones de Empleo Simplificado (PPES) comes on top of the classic 1,500 EUR limit and opens up an additional 4,250 EUR of headroom. Contributions have to be made by December 31, and payouts are later taxed as employment income.

What the PPES changes for autónomos

Until 2022, self-employed workers in Spain could only pay 1,500 EUR a year into a private pension plan with a tax benefit, well below what employees got through occupational pension schemes. Ley 12/2022 of June 30, 2022 changed that: it introduced the PPES, a form of occupational retirement savings that professional associations such as ATA or UPTA set up specifically for their members.

The PPES doesn't replace the private plan, it comes on top of it. If you have access to a PPES through one of these associations, your limit rises from 1,500 EUR by up to 4,250 EUR, to a total of 5,750 EUR a year.

How much you can actually deduct

Two limits apply at the same time, and the lower one always wins:

5,750 EUR a year, combining the private plan and the PPES
30 percent of your net income from self-employment

If you earn, say, 15,000 EUR net a year as an autónomo, your limit is 4,500 EUR, below the statutory cap. Only once your net income reaches around 19,170 EUR does the full 5,750 EUR limit apply. How your net income works out from the contribution bracket you choose as an autónomo ultimately decides how much room you have.

What the tax saving actually gets you

The benefit kicks in right away, not just at retirement: every euro you contribute lowers your tax base on your IRPF return. On a taxable income of 20,000 EUR, a contribution of 1,500 EUR saves around 360 EUR in tax. Pay in the full 5,750 EUR limit, and the saving comes to around 1,380 EUR, depending on your marginal tax rate.

Tip: check your marginal tax rate first

How much a contribution actually gets you depends on your tax bracket. At higher income levels the marginal rate is often above 30 percent, so the saving per euro contributed comes out correspondingly higher.

The catch: the payout in retirement is taxed in full as employment income, not as investment income with the more favorable savings tax rate. If you cash out early, you generally can't access the money before ten years have passed, or in legally defined exceptions such as unemployment or serious illness.

Providers and the year-end deadline

For the private portion up to 1,500 EUR, you're free to choose: banks, insurers, and index fund providers all offer classic pension plans with different cost structures and investment strategies. Comparing them is worth it, because running costs make a noticeable difference over decades.

For the PPES portion, though, you need access through an approved promoter. That includes the professional associations ATA and UPTA, which offer their own PPES products to members. A number of banks and specialized retirement providers have since launched PPES lines too. If you already invest your money in ETFs and index funds, you'll increasingly find PPES variants from index fund providers as well, with lower management fees than classic insurance products.

Your contribution has to reach the provider's account by December 31 to count for the current tax year. If you transfer it in the new year instead, you can only claim it on the following year's return at the earliest.

Watch the order when paying into more than one plan

If you contribute to both a private plan and a PPES, have your tax advisor check how the amounts are applied. Go over the 30 percent limit, and part of the contribution loses its tax benefit.

The legal basis is Ley 12/2022 of June 30, 2022; the Agencia Tributaria explains the deductibility details in its official guidance on the changes.

Ley 12/2022 in the BOE

Official legal text introducing the Planes de Pensiones de Empleo Simplificados.

Agencia Tributaria: changes under Ley 12/2022

Official explanation from Spain's tax authority of the new deduction rules.

Frequently asked questions

Can I contribute to a private plan and a PPES at the same time? Yes. Both count together toward the overall limit of 5,750 EUR or 30 percent of your net income, whichever is lower.

What happens if I deregister as an autónomo? The plan stays in place. You can keep contributing as an employee or a private individual, just capped at the 1,500 EUR limit for the private portion.

From what income level is it worth maxing out the contribution? From a net income of around 19,170 EUR a year, because 30 percent of that already equals the full 5,750 EUR limit.

Conclusion

The PPES has noticeably improved retirement savings for autónomos: where only 1,500 EUR used to get a tax benefit, it's now up to 5,750 EUR since Ley 12/2022, capped at 30 percent of your net income. The tax saving is immediate, though the money is generally locked in for ten years. Contribute by December 31 and compare providers and fee structures beforehand, and you're using one of the few real tax advantages available to autónomos in Spain. For more on setting up and the ongoing obligations of self-employment, see the guide to becoming an autónomo in Spain.