Tax subsidy & Sonderausgabenabzug for the AVD

Tilman Freyenhagen

Published on 15 June 2026 · Updated on 7 August 2026 · Managing Director & Partner, Alsterspree Verlag GmbH

1. The new Altersvorsorgedepot: a tax milestone for private pension provision

During the contribution phase, the new Altersvorsorgedepot is subsidised through an attractive Sonderausgabenabzug (deduction as a special expense) and an automatic Günstigerprüfung (favourability check). Contributions can be deducted from tax up to a statutory maximum, with the tax office checking whether the direct state allowance or the tax saving works out more favourably for you^[1]. For high earners with a high marginal tax rate in particular, this creates a highly efficient lever, since the tax saving often exceeds the direct allowance by a clear margin, and tax is only due later, in the payout phase.

With the introduction of the Altersvorsorgedepot from 2027, the legislature is fundamentally modernising state-subsidised private pension provision^[1]. The principle of deferred taxation means that the contributions you pay in reduce your taxable income here and now. Through our knowledge section, we help you make independent sense of these reform steps. For high-earning employees and the self-employed, this means every euro you pay into the account can initially be invested untaxed, allowing a considerable compound-interest effect to build up over the years.

The decisive lever for high earners lies in how the Günstigerprüfung works. If your personal marginal tax rate is, say, 42 percent, the Sonderausgabenabzug on your contributions produces a tax refund that is well above the usual allowance amounts. The tax office offsets the allowance already paid against the calculated tax benefit and refunds you the difference directly. To work out these effects precisely based on your own income, our interactive subsidy calculator is available to you.

Note: the calculations and tax mechanisms are for illustrative purposes only and do not constitute tax or financial advice (not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG).

2. The Sonderausgabenabzug: how to deduct your contributions from tax

The tax foundation for the new Altersvorsorgedepot from 2027 rests on the well-established principle of the Sonderausgabenabzug under Section 10a of the Einkommensteuergesetz (EStG, the Income Tax Act)^[1]. As a saver, you can claim your own contributions directly in your tax return to reduce your taxable income immediately. This mechanism has a substantial leverage effect above all for high earners with a heavy tax burden. While the direct state allowance often dominates the political debate, for higher incomes it is primarily this tax deduction that makes the subsidised account so much more attractive than an unsubsidised securities savings plan.

As part of the annual income tax return, the tax office carries out an automatic Günstigerprüfung^[1]. The system calculates two scenarios: the direct entitlement to state allowances, and the actual tax saving from the Sonderausgabenabzug. If the tax benefit is higher than the allowances, it is applied, with the allowances already paid offset against it. Because high earners face a high marginal tax rate, the tax benefit usually exceeds the allowances by a clear margin. That means you get a substantial share of your contributions back through the tax refund. To work out your individual tax benefit precisely, both our guides and the interactive subsidy calculator are available to you.

This worked example shows the progression effect: the higher your personal tax rate, the bigger the state contribution turns out to be via your tax assessment. A top earner with a marginal tax rate of 42 percent reduces their real net outlay on a contribution of 1,800 euros to just 1,044 euros — the state is thus indirectly covering almost half the cost of building up this wealth. This tax relief during the contribution phase frees up substantial liquidity, which can in turn be used for other investments. Please note: these calculations are for demonstration purposes only. Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

3. The new maximum amount from 2027: more room than in the Riester system

With the reform of private pension provision from 2027, the tax framework for savers is changing fundamentally. Under the old Riester system, a rigid maximum of 2,100 euros a year applied, which already included the state allowances; the new Altersvorsorgedepot takes a markedly more flexible approach^[1]. Going forward, you can claim up to 1,800 euros of pure own contributions per year as special expenses for tax purposes. The decisive advantage for high earners: the state allowances are not counted against this amount but instead flow into your account on top^[1].

Combined with the automatic Günstigerprüfung, this new headroom creates a highly efficient lever for taxpayers with a higher marginal tax rate. As part of your annual income tax return, the tax office works out fully automatically whether the Sonderausgabenabzug or the direct allowance is more advantageous for you^[1]. If the tax saving from your personal tax rate exceeds the allowances, the additional saving is offset directly against your tax liability. For high earners, this means an immediate reduction in the tax burden during the contribution phase, while the capital in the account can grow completely tax-free.

The new rules therefore create a significantly more attractive basis for long-term wealth building. To work out the exact effect on your personal tax burden and the optimal contribution level, it is worth taking a look at our subsidy calculator. In addition, you can find detailed background articles on the tax treatment and legal framework in our knowledge section. Please note: all tax calculations and projections in this article are for illustration only and do not constitute tax or financial advice.

4. The Günstigerprüfung: automatic optimisation by the tax office

For high earners, the tax component is the decisive argument for the new Altersvorsorgedepot. The principle behind it is the so-called Günstigerprüfung, which the tax office carries out fully automatically as part of your income tax return. In doing so, the tax authority compares the direct state allowance to which you are entitled — from 2027, a maximum Grundzulage of up to 540 euros — with the tax benefit from the Sonderausgabenabzug^[1]. If your personal marginal tax rate is high, the tax saving usually exceeds the direct allowance. In that case, the higher tax benefit is granted and offset against the allowance already paid. You receive the difference paid out directly as a tax refund.

This example shows the substantial lever for taxpayers on the top tax rate. At the maximum subsidised annual contribution, the tax refund becomes directly noticeable. If you want to work out how large your personal saving would be, the subsidy calculator helps you run through different scenarios precisely. You can find further in-depth explanations of the statutory rules in the knowledge section. The calculations shown are for demonstration purposes only. Important note: not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

Through this system, the Altersvorsorgedepot becomes, from 2027, a highly efficient, state-subsidised investment vehicle that clearly outperforms conventional, unsubsidised ETF savings plans on tax during the contribution phase. The tax saving noticeably reduces your net outlay, while the full invested amount can work for you in the account with the full power of compound interest. If you are unsure how best to align this tax effect with the rest of your pension provision, we are happy to connect you, through our independent advice service, with a qualified contact for a personal conversation.

5. Worked example: how the marginal tax rate maximises the subsidy

The tax subsidy for the Altersvorsorgedepot has its greatest leverage effect above all for higher incomes. Through the statutory Günstigerprüfung, the tax office automatically works out, as part of your income tax return, whether the direct allowance or the Sonderausgabenabzug is financially more advantageous for you. If your personal marginal tax rate is above the level of the direct state contributions, the difference is paid out to you as a tax refund.

This worked example shows the leverage effect for high earners. If you pay in the maximum subsidised own contribution of 1,800 euros a year, you receive a direct allowance of 540 euros. For the Sonderausgabenabzug, the tax office applies the total amount of 2,340 euros. At a marginal tax rate of 25 percent, the calculated tax saving is 585 euros. Since this is only just above the allowance, you receive an additional 45 euros refunded. At a top tax rate of 42 percent, by contrast, the tax saving is 982.80 euros^[2]. After deducting the 540-euro allowance, this leaves you with a direct additional tax refund of exactly 442.80 euros.

This additional tax refund substantially reduces your effective own outlay and makes the new model especially attractive compared with unsubsidised investments. To calculate your individual tax benefits precisely, you can use our interactive subsidy calculator or consult the comprehensive knowledge section for further details. If you would like a detailed analysis of your pension situation, our independent advice service is available to you. Please note: these calculations are illustrative and do not constitute investment advice within the meaning of the KWG.

6. Tax deferral during the contribution phase: making the most of gross-for-net growth

Anyone saving privately with ETFs for retirement knows the recurring problem: tax falls due on investment income every year. Whether through the Abgeltungsteuer (the flat withholding tax on investment income) on realised capital gains and distributions, or the Vorabpauschale (advance lump-sum tax) on accumulating funds, the state already reaches into your growing wealth regularly during the contribution phase and so slows down compound growth. The new Altersvorsorgedepot creates a highly effective remedy here from 2027. Throughout the entire contribution phase, no tax whatsoever is charged in the account on gains in value, dividends or interest income^[1]. That means every euro earned stays in the account without any tax friction, is fully reinvested and keeps working there.

Maximum compound-interest efficiency without the Vorabpauschale

For high earners with a high marginal tax rate, this tax deferral is a particularly powerful lever. In a conventional account, for example, the Vorabpauschale erodes liquidity year after year, since the tax due is either deducted from the settlement account or shares have to be sold. In the Altersvorsorgedepot, by contrast, the favourable "gross for net" principle applies. Because switching between different ETFs or funds is also possible completely tax-free, compound interest can unfold its full mathematical power over the decades^[3]. Only in retirement, that is, in the payout phase, is the capital withdrawn taxed — at a point when the personal tax rate is usually markedly lower than during active working life.

This systematic tax deferral means your wealth in the Altersvorsorgedepot can grow markedly faster than in an unsubsidised securities account. To work out this mathematical advantage precisely for your personal income situation, you can use our subsidy calculator, which simulates the tax dynamics in detail. For more complex situations, or for the structured restructuring of existing pension contracts, our independent advice service is also available, to work out a tailored strategy with qualified experts. Please note: all tax explanations and calculations are purely illustrative and do not constitute tax or investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

7. The pension provision decision: self-directed vs. guided advice

From 2027, when it comes to using the new Altersvorsorgedepot, two fundamentally equal paths are open to you, depending entirely on your personal preferences and financial experience. If you prefer to make your own investment decisions, you can set up the subsidised account directly through a neobroker or a trading platform. For this path of self-directed investing, a criteria-based provider comparison gives you the transparency you need to weigh up fees and ETF portfolios efficiently. Either way, you benefit directly from the state subsidy and the tax relief during the contribution phase.

For many savers, particularly those with higher incomes and complex tax situations, professional financial guidance is advisable. Higher tax rates mean the Sonderausgabenabzug, via the Günstigerprüfung, produces a substantial leverage effect, since contributions directly reduce taxable income^[4]. To align these tax benefits optimally with your long-term life planning and other pension building blocks, professional support is often the safer route. Through our independent advice service, you gain access to qualified, licensed financial advisers who analyse your individual situation and work out a tailored strategy for your Altersvorsorgedepot.

• Self-directed path: ideal for digitally savvy investors who want to manage their own portfolios and minimise costs via a broker comparison.
• Advice-led path: ideal for high earners who want to fine-tune the tax effect precisely and integrate the account into an existing overall plan.
• Hybrid approach: you work out your potential tax benefits in advance using the subsidy calculator, then choose the implementation path that suits you.

Whichever path you choose, the new Altersvorsorgedepot, through its combination of return-oriented investment and state tax subsidy, forms a highly efficient pillar for building your wealth. Use the knowledge section to inform yourself in detail about the tax framework, or calculate your personal tax saving directly online, to make a well-founded, future-proof decision for your pension provision. (Note: not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.)

8. Conclusion and next steps: working out your personal tax benefit

The new Altersvorsorgedepot, from 2027, establishes a highly effective, state-subsidised lever for long-term wealth building. Above all for high earners with a high marginal tax rate, the combination of the Sonderausgabenabzug and the tax office's automatic Günstigerprüfung produces a substantial leverage effect. While people on lower incomes benefit primarily from the direct allowances, for higher incomes the tax deduction delivers a noticeable reduction in the tax burden during active working life.

The next steps to optimal subsidy

To get the maximum out of the state subsidy, you should analyse your personal starting position precisely. The law provides that, going forward, own contributions of up to 1,800 euros, plus the allowances, can be claimed for tax purposes^[1]. Whether switching from an existing contract is worthwhile, and how large the net saving turns out to be, depends heavily on your individual tax situation.

• Calculate your own subsidy rate: use the interactive subsidy calculator to work out your personal tax benefit and the expected development of your pension assets on a solid, BMF-compliant data basis.
• Review existing contracts: compare old Riester-Rente contracts on cost and return potential against the new, guarantee-free account options.
• Seek expert advice: for a tailored alignment of your pension provision, our independent advice service is on hand to put you in straightforward contact with a licensed expert.

The reform offers a historic opportunity to invest in low-cost ETFs with a tax advantage. Use the knowledge section for in-depth analysis, or start straight away by calculating your benefit. Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.