Investing glossary
Individual pension plan (PPI)
PPI stands for Individual Pension Plan: a retirement savings product with tax advantages under the Spanish IRPF, but with liquidity restricted until retirement except for legal exceptions.
Contributions reduce your general IRPF tax base up to an annual limit (€1,500 for the standard individual contribution, which can be extended in some cases through employer contributions), deferring the tax bill until withdrawal.
In exchange for that tax advantage, the money stays locked until retirement, except for exceptional liquidity events set out by law (long-term unemployment, serious illness, or contributions held for more than 10 years starting from 2025). Always verify the current case and limit before deciding.