Where do I enter life insurance in my German tax return?
In short
Where do I enter life insurance in my German tax return? Term life premiums go in the form Anlage Vorsorgeaufwand, but only count up to EUR 1,900 or 2,800 together with health and care premiums. A payout from a contract from 2005 goes in Anlage KAP, with only half the gain taxed after 12 years and from age 60 or 62. Private pensions go in Anlage R.
Cap for other provision, for example self employed
EUR 2,800 a year
Capital gains tax on payout
25 percent of the full gain
Income portion of a pension from 67
17 percent of the annual pension
As of October 2026, figures from the Income Tax Act (EStG) and the North Rhine Westphalia tax
authority.
Line numbers may change with each form year.
Plus solidarity surcharge and church tax where applicable.
Worked example
Payout at 63, contract from 2012
Premiums paid EUR 40,000, payout EUR 52,000. Term and age meet the conditions for half the gain.
Gain
EUR 12,000
Capital gains tax withheld, 25 percent
EUR 3,000
Taxable after the return
EUR 6,000
Tax at a 30 percent personal rate
EUR 1,800
With Anlage KAP she gets about EUR 1,200 back.
Entering life insurance premiums
Premiums for term life insurance that only pays on death are other provision expenses (sonstige Vorsorgeaufwendungen) and go in Anlage Vorsorgeaufwand. The same applies to endowment and pension policies that started before 1 January 2005 with a premium paid before that date.
Premiums for an endowment policy taken out from 2005 are not deductible. Health and care premiums are reported electronically anyway; you only need Anlage Vorsorgeaufwand for premiums the tax office does not have.
Why life insurance premiums often bring nothing
Other provision only counts up to EUR 2,800 a year, for many employees EUR 1,900. This pot also includes health and care premiums, liability, accident and disability insurance.
If basic health and care premiums alone exceed the cap, they are deducted in full and life insurance premiums drop out. For many employees the entry brings nothing, but it does no harm.
Entering a life insurance payout
For contracts from 2005, the difference between payout and premiums paid is investment income. The insurer withholds 25 percent capital gains tax on it, even if only half is taxable; it is obliged to do so.
You get the half back through Anlage KAP: enter the full difference in the line for insurance benefits, line 30 according to the North Rhine Westphalia tax authority. The tax office halves it automatically and applies your personal rate.
Contract
Tax
Where to enter
Taken out before 2005
usually tax free
usually nothing
From 2005, 12 years and age 60 or 62
half the gain, personal tax rate
Anlage KAP, full amount
From 2005, conditions not met
full gain, 25 percent final tax
optionally Anlage KAP for review
Lifelong pension
income portion
Anlage R
Pensions from life insurance
If you choose a lifelong pension instead of a lump sum, only the income portion (Ertragsanteil) is taxed. It depends on your age when payments start: 18 percent at 65, 17 percent at 67. The pension goes in Anlage R.
Life insurance benefits on death
A sum paid out on death is not investment income; income tax law only covers payouts on survival and surrender.
Inheritance tax can still apply if the payout comes from the deceased person's contract and goes to someone else. Who is policyholder and who is beneficiary decides the tax.
When you do not need to enter the life insurance
Once capital gains tax is withheld, tax on the payout is generally settled, so there is no duty to file for it. But if you qualify for half the gain, not entering it often costs a lot of money.
Step by step
Check when the contract started and what type it is.
For a payout, have the insurer's tax certificate ready.
For half the gain, enter the full difference in Anlage KAP.
Enter a private pension in Anlage R.
Enter term life premiums in Anlage Vorsorgeaufwand.
Checklist
Contract start before or from 2005 clarified
Term at least 12 years
Age at payout 60 or 62
Tax certificate available
Beneficiary for death checked
Common mistakes
Not filing after a payout and giving away half the gain
Entering half instead of the full difference
Trying to deduct premiums for contracts from 2005
Overlooking inheritance tax on a death benefit
Questions and answers
Frequently asked
Do I have to declare a payout if tax was already withheld?
There is no duty.
But you only get the half gain treatment through Anlage KAP.
Can I deduct endowment policy premiums?
Only for contracts that started before 2005 with a premium paid before 2005.
Is the death benefit tax free?
No income tax applies.
Inheritance tax may, depending on who is policyholder and who is beneficiary.
Where does disability insurance go?
Also in Anlage Vorsorgeaufwand, in the same pot of EUR 1,900 or 2,800.
Does this apply to Rürup and Riester?
No.
Rürup premiums count as retirement provision, Riester goes in Anlage AV,
