The Basisrente, also known as the Rürup pension, is the best tax tool for saving money in Germany. It is perfect for self-employed people, freelancers, and high earners. You can deduct your contributions from your taxes and invest in modern ETFs at the same time. In my Remote consultation, I show you how to use this tax benefit for your future.
Key Facts at a Glance
| What it provides | A lifelong pension whose contributions you can fully deduct as special expenses up to the maximum amount (2026: €30,826 for singles and €61,652 for married couples). |
|---|---|
| Limits and drawbacks | No lump-sum payout, not inheritable without additional cover, cannot be cancelled, and deferred taxation in retirement at your personal tax rate (84% taxable for retirement start in 2026, reaching 100% only from 2058 onwards). Details |
| Who needs it | For self-employed people and high earners with a high tax burden who save for retirement over the long term. |
| What does it cost | It depends on your personal situation. I will gladly prepare a non-binding quote for you: get in touch. |
| What to look out for | Costs, choice of ETFs, survivor cover and flexible contributions to match fluctuating income. |
Markus's Story: Turning taxes into a smart pension
Fictional example for illustration; all persons and events are invented.
Markus is an IT consultant. He is very successful, but he was unhappy about paying so much in taxes every year. "I want to save for myself, not just give it all to the state," he told me.
We found the perfect solution with a Rürup pension using ETFs. Markus can now deduct all his contributions from his taxes. This reduces his tax bill significantly.
His plan uses low-cost world ETFs. This means his money grows with the global market. Markus is happy because he can change how much he saves every month based on his profits. Today, he sees his pension plan as a smart investment that also saves him money on taxes every year.
Why the Rürup Pension is key for Expats
The Rürup pension was made for people who do not pay into the state pension or want to save more. Here is why it works:
- Tax Savings: You deduct contributions now when your tax rate is high. You pay tax later when your rate is low.
- Seizure Protection: Your pension money is safe from business problems or bankruptcy.
- ETF Power: You can use low-cost ETFs to grow your money without tax on gains inside the plan.
- Flexibility: You can change, stop, or add one-time payments at any time.
ETFs and Taxes: The Winning Mix
When you use ETFs inside a Rürup plan, you get a "compound interest turbo." Because you don't pay tax on dividends or gains while the money is in the plan, your capital grows much faster than in a normal bank account.
This combination of tax deductions and tax-free growth is very powerful. In our Remote consultation, we build a portfolio that fits your goals and keeps costs low.
Requirements for Expats
- Valid German Address (Anmeldung)
- German Bank Account (IBAN)
- German Tax ID
Limits and Drawbacks
The basic pension offers high tax advantages but is very inflexible. Drawbacks at a glance:
- No lump sum: The balance is paid out exclusively as a lifelong pension.
- Cannot be cancelled: You can stop contributions, but you cannot cancel the contract and have the money paid out.
- Inheritance: Without agreed survivor cover, the balance largely lapses on death.
- Taxation in old age: The pension is subject to deferred taxation in retirement at your personal tax rate (84% taxable for retirement start in 2026, reaching 100% only from 2058 onwards).