Do I have to pay tax on gains in the Altersvorsorgedepot?

Tilman Freyenhagen

Published on 14 June 2026 · Updated on 7 August 2026 · Managing Director & Partner, Alsterspree Verlag GmbH

The basic tax rule: no tax during the Altersvorsorgedepot's accumulation phase

In the new Altersvorsorgedepot, you don't have to pay tax on ongoing gains, dividends or returns during the accumulation phase. For self-directed savers who want to manage their retirement provision independently, this model offers a decisive tax advantage. Throughout the entire accumulation phase, no ongoing tax applies to the gains, dividends or interest you earn^[1]. Instead, the Federal Ministry of Finance (BMF) defers taxation entirely to the retirement phase. This principle is known as deferred taxation^[1].

The compound-interest effect without a tax brake

In a conventional securities account, capital gains tax applies to gains and distributions, including the solidarity surcharge and, where applicable, church tax, as soon as the Sparer-Pauschbetrag (saver's tax-free allowance) is exceeded. The annual Vorabpauschale on accumulating funds can also drain liquidity on an ongoing basis. In the state-subsidised Altersvorsorgedepot, by contrast, this tax burden is waived entirely while you're saving^[2].

All returns can be reinvested directly, without any tax deductions. Reallocations within your portfolio, too, such as selling one ETF and then buying another, stay tax-free. As a result, your entire capital keeps working undiminished for decades, which noticeably strengthens the compound-interest effect. You can run the numbers transparently for your own planning with the subsidy calculator, and analyse the potential dynamics compared with an unsubsidised account.

Note: the comparison above is for illustrative purposes only and does not constitute investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

Unthrottled compound interest: how you benefit from full tax deferral

For self-directed savers who structure their own wealth-building through low-cost ETFs, the new Altersvorsorgedepot offers a decisive lever: full tax deferral. While a classic securities account triggers annual capital gains tax on realised gains, distributions, or via the Vorabpauschale, the state waives any tax claim entirely during the Altersvorsorgedepot's accumulation phase^[1]. Investment returns and dividends flow straight back into your holdings without any tax deductions, so your capital can keep working undiminished.

This deferral of the tax burden creates an enormous lever over an investment horizon of several decades. In every year the tax office forgoes collecting tax, the share that would otherwise have been paid away stays in the account and itself generates further returns in subsequent years. The result is an exponentially amplified compound-interest effect. For self-directed investors, this means a significant head start on final capital compared with a regular, taxed ETF savings plan. To find out how this effect plays out for your own private pension provision, you can run calculations using the subsidy calculator or consult in-depth guides in the knowledge section.

Tax-free reallocation: switching ETFs and funds flexibly, without charges

Anyone who wants to adjust their long-term investment strategy quickly runs into tax limits with a conventional securities account. There, every sale of fund or ETF units to adjust the portfolio inevitably triggers a tax liability once realised gains exceed the Sparer-Pauschbetrag. In the state-subsidised Altersvorsorgedepot, this works fundamentally differently. Throughout the entire accumulation phase, all reallocations, dividends and other investment returns stay completely tax-free^[2]. You can reallocate your assets as you see fit, for example to gradually reduce risk before retirement, without a single cent of capital gains tax becoming due. The capital stays within the account without deductions and is immediately available again for new investments.

Waiving capital gains tax and the Vorabpauschale during the accumulation phase like this produces a substantial tax-deferral effect. Because no interim taxes eat into the returns you earn, your entire capital stays fully invested. Over a term of several decades, this compound-interest effect works noticeably in favour of your wealth-building, since the deferred tax burden can itself keep generating further returns right up to the payout phase in retirement. In our knowledge section, we provide well-founded analyses that explain this deferred taxation in accessible terms. To calculate your individual savings precisely, our neutral subsidy calculator is also freely available, simulating the tax differences precisely.

Comparison table: tax in a normal account versus the Altersvorsorgedepot during the savings phase

For self-directed savers who want to build their own retirement provision with ETFs and equities, tax efficiency during the accumulation phase is a decisive lever for long-term returns. A key advantage of the state-subsidised Altersvorsorgedepot lies precisely in this tax treatment during the accumulation phase. While in a conventional account you have to pay capital gains tax and Vorabpauschalen on dividends and realised price gains every year, in the Altersvorsorgedepot these returns stay entirely tax-free. Deferred taxation only applies later, on payout in retirement^[1]. We've set out this fundamental difference in the overview below.

This consistent, statutory deferral of the tax burden into the retirement phase produces an enormous tax-deferral effect that self-directed investors can put to targeted use. Because no capital is drained from the Altersvorsorgedepot through annual tax payments over the entire decades-long accumulation phase, your invested assets benefit maximally from the compound-interest effect. If you want to work out how strongly this advantage affects your likely final capital compared with an unsubsidised ETF savings plan, our interactive subsidy calculator is available to you. You'll also find additional tax analyses and structured background on the reform in our neutral knowledge section.

Disclaimer: the information set out here is for neutral information purposes and compares the tax systems on the basis of the current legal situation. These model calculations and comparisons are purely illustrative and do not constitute investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

Exemption from the Vorabpauschale: an often-overlooked advantage for fund investors

For private investors building assets independently with mutual funds or ETFs, the annual Vorabpauschale (the advance lump-sum tax on accumulating funds) is a well-known hurdle. For accumulating funds, which automatically reinvest their returns, the tax office demands early tax payment on a notional minimum return. This continually drains liquidity from the account and weakens the compound-interest effect. Under the enacted reform of private pension provision, this early taxation is waived entirely in the new Altersvorsorgedepot from its 2027 start^[3]. Because no ongoing capital gains tax is levied throughout the accumulation phase, the invested capital stays fully active, undiminished. The tax-deferral effect ensures that gains are fully reinvested, allowing them to develop noticeably stronger momentum in wealth-building over the decades^[3].

For committed self-directed savers, this rule also cuts the administrative burden considerably. In a conventional securities account, you always have to make sure your settlement account has enough cover on the first banking day in January, so the custodian bank can debit the tax on the Vorabpauschale. In the Altersvorsorgedepot, this liquidity planning is unnecessary altogether. Every dividend and every price gain flows gross, straight back into your investment. If you want to work out how this compound-interest effect, combined with state allowances, can affect your final capital in the long run, the subsidy calculator is a neutral tool for that. This shows you directly how much capital is working for your pension without the annual tax brake.

Please note that the tax rules only take effect from the 2027 start, and comparisons always depend on individual factors. Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

Ongoing returns: how dividends and distributions are treated for tax purposes

If you're saving privately for retirement, the question of the tax burden on ongoing returns inevitably comes up. In a conventional securities account, capital gains tax plus solidarity surcharge and, where applicable, church tax applies to every distribution and every sale. With the new Altersvorsorgedepot, however, things work fundamentally differently. Throughout the entire accumulation phase, all price gains, interest and dividends are completely exempt from ongoing tax^[1]. That means that, regardless of whether you invest in distributing or accumulating funds, all returns can be reinvested gross, with no deduction. Taxation is shifted entirely to the later payout phase.

This systematic deferral of the tax burden is known as the tax-deferral effect. Because no capital is taken by the state during the year, your entire saved assets keep working undiminished. Especially over a term of several decades, this principle substantially maximises the compound-interest effect. Via the knowledge section, you can find out in detail about the statutory framework. The financial advantage of this tax-free reinvestment, compared with an unsubsidised securities account, can also be precisely simulated with the subsidy calculator.

Thanks to this tax exemption during the savings phase, you also avoid the administrative burden of an annual tax return for the returns in the Altersvorsorgedepot. Only once you retire are the payouts taxed at your personal income tax rate applicable at that time. Please note that this description illustrates the statutory principles and does not constitute investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

Drawing the line to the payout phase: when tax becomes due in the Altersvorsorgedepot

In the new Altersvorsorgedepot, no tax at all applies to your investment returns throughout the accumulation phase. Lawmakers defer taxation entirely to the payout phase in retirement, known as deferred taxation^[1]. Only once you start receiving payouts from your subsidised account in old age are these taxed at your personal income tax rate. Because this tax rate is significantly lower in retirement for the vast majority of savers than during their working life, a substantial tax advantage arises compared with regular wealth-building.

How tax deferral accelerates your wealth-building

In a conventional account, capital gains tax acts as a continuous brake on growth. Every time an ETF pays out dividends, or you reallocate your portfolio, part of your gain flows straight to the tax office and is no longer available for future returns. In the Altersvorsorgedepot, by contrast, your entire capital stays invested gross throughout the accumulation phase. This tax-deferral effect means interest and compound interest can work for you undiminished over the decades. Self-directed savers can put this compound-interest advantage to targeted use, to build a substantially larger final capital with low-cost ETFs.

The exact effect of tax deferral depends heavily on your individual savings rate and term. Via our neutral subsidy calculator, you can simulate how this effect compares with an unsubsidised account and affects your likely final capital. For deeper tax-law detail, we also point to our knowledge section. Please always keep in mind: all tax and mathematical comparisons are for illustration purposes only and do not constitute tax or financial advice (not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG).

The path to the right account: self-directed choice via a neobroker or personal advice

To make the concrete financial advantages of the new Altersvorsorgedepot tangible for your personal situation, a structured, source-based analysis is worthwhile. With the interactive subsidy calculator, you can work out precisely, for your individual profile, the expected savings from the elimination of capital gains tax as well as the state allowances. The statutory framework set by the Federal Ministry of Finance ensures that all gains, dividends and reallocations stay tax-free throughout the entire decades-long accumulation phase, which massively strengthens the compound-interest effect^[1]. Whether you ultimately manage this tax-optimised account yourself or get professional support depends entirely on your personal preferences and appetite for making decisions.

• The self-directed path: experienced self-directed savers who want to build their long-term ETF investment independently and flexibly manage their account particularly cost-effectively, directly with one of the leading neobrokers.
• The supported path: private savers who feel unsettled by the regulatory complexity of the Riester reform, or who want tailored advice on switching existing contracts, use personal expert support.

On our neutral portal, Vorsorgedepot-Lotse, the right digital tools are available for both approaches. If you want to manage your retirement provision yourself, you can use the provider comparison tool to transparently compare the various brokers and terms. If you prefer a personal conversation and advice tailored to your life situation, our independent advice service puts you in touch with licensed financial advisers without any hassle. For deeper, source-backed expert information, the knowledge section is also open to you at any time, so you can find out neutrally about the statutory framework behind deferred taxation.

Important legal notice: all model calculations, comparisons and tax explanations on our pages are for illustrative purposes only and do not represent any guaranteed performance. Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.