(2023) How can I claim contributions to a Rürup pension in my tax return?

The private basic pension, also known as the Rürup pension, has tax incentives. This means you can deduct the contributions you pay from your tax, but there is a limit. You can deduct these contributions along with other contributions to the state pension insurance and professional pension schemes up to a certain maximum amount. These contributions only reduce your taxes by a fixed percentage.

It is important to know that until 2023 there was a transitional phase during which the tax incentives were gradually introduced. Only from 2023 can you deduct the full contributions. The reason for this is the Retirement Income Act of 2005. This law changed the taxation of pensions, and to offset this change, the tax incentives for private pensions were gradually increased.

The percentage by which the contributions reduce tax increased by two percentage points each year until it reached 100 percent. It was originally planned that this would not be the case until 2025. However, due to a change in the law, this target was already reached in 2023.

In 2023, you can deduct a total of up to 26.528 Euro (for single persons) or 53.056 Euro (for married couples) in pension contributions, and these contributions reduce your taxes by 100 percent.

An important note: From 2023, the taxable portion of pensions will only increase by half a percentage point per year, instead of a full percentage point. This portion will not reach 100 percent until 2058. This is due to a change in the law, the "Growth Opportunities Act".

For pensioners who receive a pension for the first time in 2023, the taxable portion is therefore 82.5 percent of the pension amount.