(2023)
How can I deduct contributions and pensions from life insurance?
Contributions to endowment insurance are considered pension expenses and can be deducted from tax if they are part of an old contract concluded before 2005. However, they are only taken into account if the deductible maximum amount of 1.900 Euro (employees, pensioners) or 2.800 Euro (self-employed) has not already been exhausted with contributions to basic health and nursing care insurance.
Contributions paid to endowment or pension insurance with a capital option have only been 88 percent deductible since 2004. If the capital option is excluded in the pension insurance, the contributions are 100 percent deductible.
However, the total amount of pension expenses that can be claimed for tax purposes is very complicated to calculate and, above all, limited. Often, the remaining deduction allowance for the maximum amount has already been exhausted by contributions to accident and liability insurance. Contributions exceeding this cannot be claimed.
