El decreto que será convalidado incluye la cuenta europea de inversión

The decree set for validation includes the European Investment Savings Account. Profits on investments held in the account remain exempt while in the account. After five years, profits up to 10,000 euros are fully exempt, and 20% exemption applies to profits exceeding that amount. The first of two housing-related decrees approved by the government on Tuesday and likely to be validated by the Permanent Congress Standing Senate incorporates the launch of the European Investment and Savings Account.

The product, according to sources from the Ministry of Economy, Trade, and Enterprise led by Carlos Cuerpo, aims to encourage long-term savings proposed by the ministry and will be open to all taxpayers who can apply for it with their banks and investment services firms. General conditions include each person having an ordinary account compatible with a reinvestment account and contributing up to 150,000 euros.

Profits remain exempt - one of the main advantages - while in the account. After five years, profits up to 10,000 euros are fully exempt, and 20% exemption applies to profits exceeding that amount. Investments in the European account can include shares of European Economic Space companies and funds investing at least 70% of their portfolio in Europe and half in variable income.

Customers can open the account once the tax information declaration order is approved. Until the National Market Commission (CNMV) creates the eligible funds registry - within a maximum of four months - the account can only include shares. Concurrently, the decree also incorporates the launch of the European Investment and Savings Account Reinvestment, another product through which tax-free income gains from the sale of unoccupied public housing for two years or more can be channeled to public administrations.

The exemption is automatic and total for homes sold for 200,000 euros or less; it decreases progressively from that amount up to zero for sales over 800,000 euros. However, sellers can also exempt the remaining profit if they reinvest the proportional sale price in the new European Investment and Savings Reinvestment Account within six months of the sale or from when the account becomes available for sales made earlier.

Additionally, the Individual Long-Term Financial Savings Insurance is created, which insurance companies will offer and allow customers to choose from different portfolios managed through delegated investment in European investments.