Vorsorgeaufwendungen (Preventive Expenses) are expenses you pay to secure yourself for retirement, illness, or for your dependents. They are partly or fully tax-deductible and must be included in your tax return.
They include contributions to the statutory pension insurance, private and company pension schemes, and certain insurances such as health and long-term care insurance. The tax office distinguishes between basic provisions (e.g. pension and health insurance) and other preventive expenses (e.g. liability insurance).
Vorsorgeaufwendungen reduce your taxable income. That’s why it pays to keep receipts and fill in the correct fields in your tax return.
You will encounter the term ‘Vorsorgeaufwendungen’ in your tax return, in ELSTER, or when consulting with your tax advisor.
As an expat in Germany, this is especially relevant if you are required to make mandatory contributions to German social security or if you hold German health insurance.
Examples:
- You pay contributions to the statutory pension insurance. These count as Vorsorgeaufwendungen.
- You have a private liability insurance. Parts of the premium can be deducted as other preventive expenses.
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