With the Wohn-Riester contract the state promotes the creation of residential property as a private pension plan, if the real estate is used as the main domicile.- Anyone who (including government aid) deposits each year 4% of his or her gross salary, up to max. 2100 euro per year, receives the maximun aid. With, for example, only a 2% contribution you receive only 50% of the aid.
- As is the case for each Riester contract, which is also valid for the Wohn-Riester: tax-free first and then pay taxes later in retirement age.
- The co-payment can be made for taxation as special expenses ans is thus tax-free.
- As there isn't a real existent taxable annuity for live at Wohn-Riester contract, the tax office administers a fictive aid money account. All paid self-contributions and government allowances are cumulated and paid interest annually of 2% for the determination of the later tax height. Then in retirement age this balance of account is the basic of the tax payments, which can be distributed up to 23 years.
- Who instead settles their back taxes at all once, receives a deduction of 30%.
| |