Millions of pensioners in Germany are liable to pay taxes. But many people don't know about it until the letter comes from the tax office.
Gradually, an increasingly larger part of the pension becomes taxable, while contributions during the working phase are made tax-free. The later the pension starts, the higher the taxable portion of the pension income. New retirees in particular should be careful: they have to pay tax on a higher portion of their pension than long-term retirees. The Taxpayers' Association, the broadcasting company, says that pensioners are 'blown away' when they receive a request for a tax return for several years to submit a return. It is not the tax office that points this out as a precaution - but rather the pension insurance. The pension information that you receive every third year from the age of 55 contains the following note: "Part of your pension is part of your taxable income, the remaining amount is the tax-free part of our pension. We cannot assess whether you actually have topay taxes on the taxable part of your pension."