Taxing German life insurance and private annuity payouts
When a German endowment policy or private pension insurance pays out as a lump sum, the gap between the benefit and the premiums is taxable — only half of it if the contract ran twelve years and the payout comes after age 60, or after age 62 for contracts signed from 2012. Plus the minimum death cover, unit-linked policies and pre-2005 contracts. The second module covers the 25 % withholding on the full gap, the correction in the tax return, the lifelong annuity taxed on its yield share and the death benefit. Two modules with case studies worked on the statute itself.
Intermediate2 modules40 minModule 1 free to read
2026 rules — verified on September 23, 2026
Figures are tied to dated, sourced tax constants. A module whose rules have changed is flagged for review, and is unpublished automatically beyond 90 days.
By the end of this course, you can…
These outcomes are the modules' own: the promise cannot say anything the course does not teach.
- recognise the contracts whose lump-sum payout falls under section 20(1) no. 6 of the Income Tax Act (EStG)
- work out the taxable gap between the benefit and the premiums
- check both conditions for half taxation and the minimum age that applies according to the year the contract was signed
- place pre-2005 contracts, the minimum death cover and unit-linked policies correctly
- understand why the insurer withholds capital gains tax on the full gap
- enter half of it in the assessment at the personal rate and have the withheld tax credited
- classify the sale and purchase of a policy for tax purposes
- distinguish the lifelong annuity and the death benefit from the lump-sum payout
The programme, module by module
Each module has its own page. Durations are derived from the actual text, never announced by hand.
- Module 120 minFree — no accountBenefit minus premiums, and when only half of it countsWhat you will be able to do
- recognise the contracts whose lump-sum payout falls under section 20(1) no. 6 of the Income Tax Act (EStG)
- work out the taxable gap between the benefit and the premiums
- check both conditions for half taxation and the minimum age that applies according to the year the contract was signed
- place pre-2005 contracts, the minimum death cover and unit-linked policies correctly
- Module 219 minIncluded in the full courseFrom withholding to the tax return, and the annuity as the other choiceWhat you will be able to do
- understand why the insurer withholds capital gains tax on the full gap
- enter half of it in the assessment at the personal rate and have the withheld tax credited
- classify the sale and purchase of a policy for tax purposes
- distinguish the lifelong annuity and the death benefit from the lump-sum payout
What you take away
A handout you keep, not just a page you read. The sections are derived from the course itself: what is announced here is exactly what gets generated.
Participant handout (PDF)
PDF
- Learning objectives (2)
- Key figures (3)
- Mistakes to avoid (2)
- Official sources (2)
Exercise workbook (Word)
Word
- Learning objectives (2)
- Key figures (3)
- Mistakes to avoid (2)
- Official sources (2)
Answers live in a separate appendix: the participant handout and the workbook stay distributable before the exercise.
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Educational content, current with the sources cited. It does not replace advice tailored to your situation. These courses are neither certifying nor CPF-eligible: they prepare for no certification registered with the French RNCP or specific register.