The Spanish government plans to revive a savings product that enables individuals to save up to 5,000 euros annually without tax on the gains, aiming to channel investments towards European business projects.
The Spanish Ministry of Economy intends to reinvigorate a financial product called SIALP (Individual Long-Term Savings Insurances), originally introduced in 2014, that offers tax advantages for savers. This initiative aims to redirect individual savings towards EU business projects under the 'Finance Europe' label. The SIALP allows contributions up to 5,000 euros per year, with earnings from this savings insurance exempt from taxes as long as they are maintained for at least five years.
Despite its potential, the SIALP has struggled to gain traction in the market, currently managing assets of only 3.6 billion euros, which reflects a struggle to compete with other investment products. The government hopes that by revamping this scheme and associating it with the European business initiatives, it might stimulate interest both from savers and invest in necessary business ventures across Europe. This relaunch suggests a strategic move by the Spanish government to promote savings while simultaneously supporting the economic recovery of local businesses.
Overall, the relaunch of the SIALP represents a dual strategy aimed at increasing personal savings and boosting the economy through investments in European projects. Should this initiative succeed, it could signify an important step in enhancing financial products for individual savers and fostering economic cooperation within the EU.
