Unit-linked pension insurance tax before 2005: How to secure your benefits
7 Apr 2025
5
Minutes
Katrin Straub
Managing Director at nextsure
Do you own a unit-linked pension insurance policy taken out before 2005? The tax treatment of such legacy contracts offers opportunities but also pitfalls. Understand the rules now to make the most of your returns.
The topic in brief and concise terms
Capital payouts from unit-linked pension insurance policies (concluded before 2005) can be completely tax-free under certain conditions (e.g., twelve years term, five years of premium payments).
For pension payments from such old contracts, tax exemption was, under certain circumstances, applicable according to a 2021 BFH ruling. However, the Annual Tax Act 2024 may have reintroduced taxation of the yield component.
If the criteria for tax exemption are not met, or for contracts from 2005 onwards, the half-income procedure (half of the income taxable) or the flat-rate withholding tax often applies.
Make the most of tax privileges for old contracts (before 2005)
For contracts related to unit-linked pension insurance concluded before 2005, special tax rules apply. These so-called old contracts often enjoy significant tax advantages upon payout. The exact conditions depend on the form of payout: lump-sum or annuity. It's crucial to understand the differences. Your private pension insurance can thus be optimised. This knowledge helps you avoid financial disadvantages.
Capital Distributions from Old Contracts: Check Conditions for Tax Exemption
A lump sum from your unit-linked pension insurance (concluded before 2005) can be completely tax-free. Certain conditions must be met for this. The contract term must be at least twelve years. In addition, contributions must have been paid for at least five years. Often, a minimum death benefit cover of sixty percent of the premium amount was also a requirement. For example: Max paid into his contract for 15 years and receives 50,000 euros tax-free. Therefore, examine your contract details carefully. Additional information on whole life insurance can be found here.
Pension payments from old contracts: Understanding the current legal situation and important court rulings
For pension payments from old contracts, taxation on the yield portion was long customary. A ruling by the Federal Fiscal Court (BFH) in 2021 temporarily clarified this. It stated that pensions from old contracts could be tax-free under certain conditions. This was the case until the sum of the pensions exceeded the accumulated capital. However, the Annual Tax Act 2024 may have changed this regulation again. It is likely that the yield portion will now be taxed again according to § 22 EStG. Our expert tip: If in doubt, definitely consult a tax advisor. This is particularly relevant if you are considering cancelling your private pension insurance and optimising taxes.
Analyse of tax implications for not meeting the criteria for tax exemption
What happens if your unit-linked pension insurance before 2005 does not meet the criteria for complete tax exemption? In this case, the returns from the contract become taxable. The returns are the difference between the payout and the contributions paid. The half-income procedure may apply. In this process, only half of the returns are taxed at your personal income tax rate. This is applicable if the contract has run for at least twelve years and the payout occurs from the age of 60. An example calculation: With a return of €10,000 and a personal tax rate of thirty percent, €1,500 in taxes would be payable (€10,000 * 0.5 * 0.3). Find out more about insurance and tax in general.
Formulating practical recommendations for holders of legacy contracts
For holders of a unit-linked pension insurance concluded before 2005, there are specific steps to follow. These assist in optimising the tax situation.
Here is a checklist for you:
Check the exact completion date of your contract.
Examine the contract term and the duration of premium payments.
Find out about the amount of agreed death cover.
Weigh the pros and cons of a capital payout versus a pension payment.
Have the tax implications of both options calculated.
Consider the current Annual Tax Act 2024 and its potential impacts.
Our expert tip: Thorough examination of your documents is essential. In complex cases or uncertainties regarding the unit-linked pension insurance taxation before 2005, professional advice is invaluable. This way, you can avoid costly mistakes and make the most of your capital life insurance. The right strategy secures financial benefits in retirement.
Next steps: Have your individual situation assessed
The tax treatment of your unit-linked pension insurance before 2005 is complex. Many individual factors play a role. Therefore, a general statement is difficult. Do you still have questions about your unit-linked pension insurance? We at nextsure offer you initial guidance. An individual analysis of your situation is the next logical step. This way, you can ensure that you capitalise on all the benefits of your old contract. Don't hesitate to contact us for advice.
Request an individual risk analysis now: Have your insurance situation checked free of charge and receive specific optimisation proposals.
More useful links
Haufe provides information on tax-advantaged insurance contracts concluded in pension form before 1 January 2005.
Lohnsteuer-Kompakt discusses the potential risk to the tax exemption for pensions from pre-2005 contracts.
Finanzamt NRW offers information on income from capital assets, particularly earnings from endowment life insurance policies.
Bund der Versicherten provides a PDF document on unit-linked life and pension insurance.
Bundesfinanzministerium makes available relevant annexes to the Income Tax Act.
Bund der Steuerzahler explains in an article about the tax-free status of private pensions.
Die Versicherer offers a news article on taxes on life insurance policies.
Handelsblatt publishes an article on when and how life insurance policies must be taxed.
Deubner Steuern provides information on the taxation of private pension insurance.
FAQ
Wie wird eine fondsgebundene Rentenversicherung mit Vertragsabschluss vor 2005 bei Kapitalauszahlung besteuert?
Erfüllt der Vertrag bestimmte Kriterien (u.a. mind. zwölf Jahre Laufzeit, mind. fünf Jahre Beitragszahlung, ggf. Mindesttodesfallschutz), ist die Kapitalauszahlung in der Regel komplett steuerfrei. Andernfalls werden die Erträge besteuert, eventuell nach dem Halbeinkünfteverfahren.
Was gilt steuerlich für Rentenzahlungen aus einer fondsgebundenen Rentenversicherung vor 2005?
Ursprünglich wurde der Ertragsanteil besteuert. Ein BFH-Urteil von 2021 ermöglichte unter denselben Bedingungen wie für steuerfreie Kapitalauszahlungen auch steuerfreie Renten (bis das Kapital aufgebraucht war). Das Jahressteuergesetz 2024 hat dies aber vermutlich wieder geändert, sodass wahrscheinlich wieder die Ertragsanteilsbesteuerung gilt. Eine Klärung im Einzelfall ist wichtig.
Welche Rolle spielt das Datum des Vertragsabschlusses für die Besteuerung?
Das Datum des Vertragsabschlusses ist entscheidend. Für Verträge, die vor dem ersten Januar 2005 abgeschlossen wurden (Altverträge), gelten potenziell günstigere Steuerregeln als für später abgeschlossene Verträge, insbesondere die Möglichkeit der Steuerfreiheit von Kapitalauszahlungen.
Was ist das Halbeinkünfteverfahren und wann kommt es bei Altverträgen zur Anwendung?
Beim Halbeinkünfteverfahren wird nur die Hälfte der Kapitalerträge mit dem persönlichen Einkommensteuersatz versteuert. Bei Altverträgen (vor 2005) kann es zur Anwendung kommen, wenn die strengen Voraussetzungen für die komplette Steuerfreiheit nicht erfüllt sind, aber die Bedingungen für das Halbeinkünfteverfahren (mind. zwölf Jahre Laufzeit, Auszahlung ab Alter 60/62) schon.
Muss ich meine fondsgebundene Rentenversicherung vor 2005 in der Steuererklärung angeben?
Ja, Erträge aus Lebens- und Rentenversicherungen sind grundsätzlich in der Anlage KAP oder Anlage R (bei Renten) anzugeben, auch wenn sie steuerfrei sein könnten. Bei Unsicherheiten oder zur Nutzung von Wahlrechten (z.B. Günstigerprüfung für Halbeinkünfteverfahren) ist die Angabe und ggf. Beratung durch einen Steuerberater empfehlenswert.
Wo finde ich Informationen zur steuerlichen Behandlung meiner spezifischen Police?
Die detaillierten Bedingungen und das genaue Abschlussdatum finden Sie in Ihren ursprünglichen Vertragsunterlagen (Versicherungsschein). Für eine aktuelle steuerliche Einschätzung, insbesondere im Licht neuer Gesetze, sollten Sie einen Steuerberater oder Ihren Versicherungsanbieter konsultieren.
