Spain is one of the best destinations in the world to live the retirement stage. In fact, 21% of non-Spanish European citizens living in Spain are retirees. Among the foreign retirees who most choose our country, the first ones are the European Community citizens, followed by the non-European Community citizens and the Americans. If you also want to spend your retirement in Spain, we recommend that you take out an annuity insurance policy. But what exactly is an annuity insurance? How does it work? How can I take out one? In today’s post we explain it to you, read on and find out all about it!  

What is an annuity insurance?  

It is one of the saving and investment methods for retired workers. Different banks in our country, such as BBVA or La Caixa, offer this product. The life annuity insurance ensures that its holder will receive an income periodically until his or her death. In addition, this type of insurance offers interesting tax advantages.  

What advantages does it offer?  

The life annuity insurance allows cancellation and can recover the capital contributed, although in a lower amount than the initial one. However, other savings products, such as pension plans, do not allow the recovery of the capital. In addition, life annuity insurances have important reductions at the time of receiving the benefit. These reductions can be up to 92% of the income.  

How does it work?

At the time of taking out the insurance policy, the policyholder makes a single initial capital contribution or, if he/she prefers, can also choose to make several contributions.  

Once this contribution has been made, the life annuity insurance assures a periodic income until death.   

The policyholder can choose to receive this income on a monthly, quarterly or annual basis. The amount received in each period will depend on the capital initially contributed. In addition, the policyholder can also choose whether the amount of the periodic annuity will be fixed until death, or whether he/she prefers it to increase progressively.  

If you wish to spend your retirement years in Spain, at People Global Relocation we are at your disposal to solve all your doubts and manage the necessary documentation.  

Remember that you can also read other interesting posts in our blog:  

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