Health Premiums Are Deductible
The part of your PKV premium that pays for basic-level cover is deductible as a special expense (Vorsorgeaufwendungen) on your German tax return. Basic-level cover means the benefits broadly equivalent to statutory health and compulsory care insurance. The extra you pay for private comforts, such as single-room hospital cover, is not part of that deductible portion.
How the Insurer Helps
Your insurer works out and certifies how much of your premium counts as the deductible basic portion, and reports it. You do not have to estimate it yourself. That certified figure is what goes into your return, and for many privately insured people the deduction is substantial, since basic health and care cover makes up a large share of the premium.
Where the Basisrente comes in: health and pension contributions share the same category of deductible provision expenses. If you also pay into a Basisrente (Ruerup) pension, the interaction affects how much headroom you have, so it is worth planning the two together.
Getting It Right
- Use the certified figure: rely on the insurer’s statement of the deductible basic portion.
- Include care insurance: the compulsory care element is part of the deductible provision.
- Plan alongside pensions: Basisrente contributions and health premiums interact within the provision-expenses rules.
- Keep the statements: retain the insurer’s annual tax certificate for your return.
For the self-employed, who pay the whole premium themselves, this deduction is one of the more valuable features of private cover, so make sure the certified basic portion actually reaches your tax return each year.
Frequently Asked Questions
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