Tax Limits for Savings and Investments

At the start of a new year, a number of amounts are traditionally adjusted to the index. It will be no different in 2019. This also applies to a number of issues related to saving and investing.

 

Pension saving

Pension saving

An initial adjustment applies to the maximum deposits for pension savings . Those who want to qualify for a 30 percent tax reduction on their deposits can deposit up to 980 euros in 2019. That is 20 euros more than the 960 euros from 2018. The tax benefit for those who use this to the maximum increases as a result from 288 euros to 292 euros.

Those who deposit more will receive a tax reduction of 25 percent. This benefit now applies up to 1,260 euros instead of 1,230 euros. Please note: anyone who wants to save up to the higher ceiling must apply annually to his financial institution.

 

Long term saving

Long term saving

The amount of long-term savings that qualifies for a tax reduction will in 2019 increase from 2,310 euros to 2,350 euros. This amount includes both saving for an additional pension capital via a tak21 savings account and any capital repayments for whom a loan was taken out for the purchase or construction of a second or subsequent home. In doing so, the repayments linked to the first loan installment of 78,440 euros instead of 76,860 euros are taken into account.

 

Individual pension commitment

Individual pension commitmentIndividual pension commitment

For the individual pension commitment for employees, the ceiling rises from 2,440 euros to 2,490 euros. This is the amount that an additional company can grant to a limited number of employees who make an exceptional effort for their employer. The condition is that there is already a group insurance policy for all employees in the company.

 

Savings account

Savings account

The exemption for the first tranche of interest on a so-called regulated savings account on which no tax is levied, increases from 960 euros per person to 980 euros per person.

 

Dividends

Dividends

There is also a larger exemption for dividends. The exempt amount on which no taxes should be paid amounted to 640 euros in 2018, which yields a tax benefit of 192 euros against a withholding tax of 30 percent. In 2019 the exempted bracket would rise to 804 euros, although the government has indicated that it would like to limit it to 800 euros. Please note: unlike the exemption on the savings account, these benefits must be requested via the tax return.

 

Loan via crowdfunding platform

Loan via crowdfunding platform

If you give a credit to a starting or young company via an accredited crowdfunding platform, then under certain conditions you can obtain interest exemption from withholding tax on the first tranche of 15,630 euros in interest. Until last year this ceiling was € 15,320.

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