Up to what amount can I deduct pensions and permanent burdens?

The deductibility of pensions or recurring burdens depends on the date of the respective contract. With the Annual Tax Act 2008, the distinction between pensions and recurring burdens was abolished (§ 10 para. 1a no. 2 EStG).

If your contract for the payment of a pension was concluded before 2008, your payments are only deductible up to the amount of the pension's yield share. The recipient of the pension must also tax this amount. If you concluded the contract later, you can deduct the pension payment in full as special expenses. The same applies here: The recipient of the pension must declare the payment as "other income" in their tax return. The same applies to the payment of a recurring burden.