There is encouraging news for certain retirees, especially those who stopped working after contributing until 1978. The topic centers on Banking Labor Reciprocity and the way the Spanish Tax Office has acknowledged overcharging some retirees in personal income tax. In many cases, retirees may be entitled to a refund of up to 4,000 euros, though the exact amount varies. The variation depends on the individual’s career path and how long they contributed to the mutual benefit tied to their labor sector.
A Supreme Court ruling served as the turning point. It confirms that current retirees who participate in the Banking Labor Partnership qualify for a full 100% tax deduction on their contributions through December 31, 1966, and a 25% tax deduction for contributions made between January 1, 1967 and December 31, 1978.
The ruling also implies that the state may owe money to workers who contributed to other professional associations during the same periods, such as those in construction, steel metallurgy, electricity, fishing, or shipyards, due to improper collection practices.
Message from the Treasury to individuals who receive fees above a certain threshold: a correction through personal income tax self-assessment covers the years that still have not expired, specifically the most recent four years. Those affected should pursue repayment by submitting the appropriate self-assessment adjustments and maintaining records of any owed amounts. It is important to note that if a beneficiary passes away, the entitlement passes to the heirs, who would then have the right to pursue the corresponding reimbursement.