The Spanish government is studying the revival of Individual Long-Term Savings Insurance Plans (SIALP), an instrument created in 2014 that allows for annual contributions of up to 5,000 euros and exempts the profits obtained from IRPF (Personal Income Tax), provided the money remains invested for at least five years. This initiative is part of the strategy of the Ministry of Economy, Trade and Enterprise, led by Carlos Cuerpo, to mobilize part of the savings immobilized in accounts and deposits towards productive investments within Europe. The SIALP were born with the tax reform approved in 2014, during the tenure of Cristóbal Montoro (PP government) at the Treasury, and were conceived as a conservative savings vehicle with a tax incentive. This seal requires three central criteria: at least 70% of assets invested in European companies, a minimum investment horizon of five years, and the absence of a permanent public capital guarantee, with a clearer focus on business financing and equities. In this context, the ministry sees SIALP as an existing tool that could be reformed quickly instead of creating a completely new product. That low return helps to explain why the instrument never really took off despite its tax benefit. The novelty is that Economy is now evaluating adapting the SIALP to the European 'Finance Europe' label, a tag launched in June 2025 by Spain together with France, Germany, the Netherlands, Portugal, Estonia, and Luxembourg to identify savings products that finance the real European economy. This is an attempt to convert a nearly dormant product into a useful tool for two simultaneous objectives: to provide a new long-term savings option with tax incentives and, at the same time, to channel private resources into productive investment in the European economy. Among the changes under study is reducing or even eliminating the 85% capital shield, which would allow for greater exposure to the stock market and improve the potential for profitability, albeit at the cost of assuming more risk than in the current model. The possibility of making the product more ambitious is also on the table. According to the draft cited by Cinco Días, today the entities offering SIALP must guarantee at least 85% of the invested capital, a requirement that historically pushed these funds towards conservative-profile assets with modest returns and little commercial appeal compared to other alternatives. According to the same economic publication, some insurance companies aspire to raise that maximum to 8,000 euros per year. Behind the measure is a much broader discussion that goes beyond the small saver. Europe has long sought to reduce its dependence on bank credit and capture a portion of the enormous volume of money that households keep in cash or in low-remuneration products. Reuters reported that, as part of that strategy, the new 'Finance Europe' seal precisely aims to redirect domestic savings towards European companies and to improve the integration of still highly fragmented financial markets. Madrid, March 18, 2026 - Total News Agency - TNA - The Spanish government is studying the revival of Individual Long-Term Savings Insurance Plans (SIALP), an instrument created in 2014 that allows for annual contributions of up to 5,000 euros and exempts the profits obtained from IRPF, provided the money remains invested for at least five years. The underlying question will be whether this new design manages to solve the main problem that has plagued the instrument since its origin: its lack of profitability and commercial attractiveness for the average saver. In that roadmap, Spain appears as one of the most active countries in promoting a practical and rapid solution. The relaunch of SIALP, therefore, should not be read only as a technical or tax measure. Current regulations establish that positive returns from these plans are exempt if no withdrawal is made before five years from their opening; if the money is withdrawn early or the requirements are not met, those gains must be integrated into the taxable base of the period in which the breach occurs. The main attraction of this product has precisely been that tax advantage, combined with a very low-risk structure. The current annual limit of 5,000 euros remains one of the most visible features of the scheme, but the financial sector itself has been pushing to raise that ceiling to make it more attractive for families with greater savings capacity. According to information published by Cinco Días, the government is analyzing introducing a minimal reform to the IRPF law so that these insurance plans fit into the logic of 'Finance Europe'.
