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Coins and savings jar on a table — Rürup pension (Basisrente) for expats in Germany
 
Explained in English · NEOdirect

Rürup Pension (Basisrente) for Expats in Germany

Tax-deductible pension savings up to €27,566/year. Ideal for self-employed expats with no company pension. Guaranteed lifetime income — with ETF/fund investment options.

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★★★★★ Trusted by 1,500+ Indian expats in Germany | Independent broker — we work for you, not for insurers
Tax benefit
Up to €27,566 deductible
100% of contributions reduce your taxable income
Retirement
Lifetime pension
Guaranteed monthly income for life — cannot outlive your savings
Ideal for
Self-employed friendly
No mandatory pension? Rürup fills the gap with massive tax savings

Rürup vs. Riester vs. Private Pension — which is right for you?

Understanding the three main private pension options in Germany.

Rürup (Basisrente) — best for self-employed & high earners
Tax benefit: Up to €27,566/year fully deductible (2024)
Who qualifies: Everyone — especially self-employed & freelancers
Payout: Lifetime annuity from age 62+
Investment: ETF & fund options available for growth
→ Maximum tax savings now + guaranteed income in retirement.
Riester & Private Pension — alternatives
Riester: Government subsidies, but only for employees in the statutory pension system
Private pension: Flexible, but no upfront tax benefit — taxed differently
Riester max: €2,100/year — much lower contribution ceiling
Flexibility: Private pension offers more withdrawal options
→ Riester suits employees; private pension suits those wanting flexibility. Rürup suits tax optimizers.

How it works

Three simple steps to start your tax-optimized retirement savings.

1
Tell us about yourself
Your income, tax situation, employment status, and retirement goals. We explain the Rürup system and tax benefits in plain English.
2
We compare & recommend
As independent brokers, we compare Rürup/Basisrente tariffs across all major providers — including ETF-based options — and recommend the best fit.
3
You start saving taxes
We handle the application. Your contributions are immediately tax-deductible — you'll see the savings in your next tax return.

Why Rürup is powerful for expats

Combine massive tax savings with smart retirement planning.

Massive tax savings now
Contributions up to €27,566/year (€55,132 for married couples) are 100% tax-deductible. At a 42% tax rate, that's over €11,500 in annual tax savings.
Guaranteed lifetime income
Rürup pays a guaranteed monthly pension for life starting from age 62. You can never outlive your retirement savings — unlike a regular savings account.
ETF & fund investment options
Modern Rürup contracts let you invest in global ETFs and funds for higher growth potential — instead of low-interest classic plans.
Cannot be seized (protected asset)
Rürup savings are protected from creditors, insolvency, and Hartz IV/Bürgergeld claims. Your retirement is safe no matter what happens to your business.
💡
Self-employed expats often have NO pension at all
Self-employed expats in Germany often have no mandatory pension whatsoever. Without Rürup or private savings, your retirement will rely solely on personal savings — and you're missing out on €10,000+ in annual tax savings. The earlier you start, the more your investments compound. Don't leave free tax money on the table.

Real situations where Rürup makes the difference

How the Basisrente helps Indian expat freelancers and self-employed professionals.

Coins and savings jar on a table — Rürup pension (Basisrente) for expats in Germany
Freelancer saved €8,000/year in taxes
A self-employed IT consultant earning €95,000/year contributes €20,000 annually to a Rürup ETF plan. At a 42% marginal tax rate, he saves ~€8,400 per year in taxes — money that would have gone to the Finanzamt is now building his retirement fund.
IT contractor built a retirement fund
A 35-year-old contractor started Rürup with €500/month invested in a global ETF portfolio. Over 30 years at 7% average growth, his contributions of €180,000 are projected to grow to ~€580,000 — providing a comfortable monthly pension for life.
Self-employed secured lifetime pension
A freelance designer with no company pension used Rürup to build retirement security. She contributes the maximum each year, saves over €11,000 in taxes annually, and will receive a guaranteed lifetime pension from age 62 — regardless of market conditions.

Good to know — what to consider

Important details about the Rürup/Basisrente system.

  • Rürup contributions are 100% tax-deductible up to the annual maximum (€27,566 single / €55,132 married in 2024)
  • The pension is taxable when you receive it in retirement — but typically at a lower tax rate than during your working years
  • You cannot withdraw a lump sum — Rürup always pays out as a lifetime monthly pension (annuity)
  • The earliest payout age is 62 years (for contracts starting from 2012)
  • Rürup savings are not inheritable in most cases — but spouse/children pensions can be added as riders
  • You can combine Rürup with other pension products — it does not replace Riester or company pensions but complements them
This is exactly why personal advice matters. We analyze your tax situation, retirement goals, and investment preferences to find the optimal Rürup strategy.

Who should consider Rürup

The Basisrente is especially powerful for these groups.

  • Self-employed and freelancers — with no mandatory pension, Rürup is often the single best retirement and tax-saving tool available
  • High earners wanting tax optimization — at a 42% marginal rate, every euro in Rürup saves you 42 cents in taxes immediately
  • IT contractors and consultants — high income + no company pension = Rürup is practically designed for you
  • Anyone without a company pension (bAV) — if your employer doesn't offer a pension scheme, Rürup fills that gap with superior tax benefits

What our clients say

Real stories from Indian expats who optimized their retirement with Rürup.

★★★★★
"As a freelance SAP consultant, I had zero pension. Navpreet set up a Rürup ETF plan and I'm saving €9,000/year in taxes. The money I would have paid to the Finanzamt is now growing in a global ETF portfolio. Wish I'd started earlier."
Ashwin · Munich
★★★★★
"I didn't understand German pension at all. NEOdirect explained everything in English — Rürup, Riester, private pension — and showed me exactly why Rürup was the best fit. My Steuerberater confirmed the tax savings. Absolutely worth it."
Nalini · Düsseldorf
★★★★★
"I contribute €1,500/month to my Rürup plan invested in a MSCI World ETF. The tax refund alone is worth it, but knowing I'll have a guaranteed pension for life gives me confidence to stay self-employed in Germany long-term."
Prakash · Berlin

Your expert for Rürup pension planning

N
Navpreet Singh
Insurance Advisor · NEOdirect
I help Indian expats — especially freelancers and self-employed professionals — build tax-optimized retirement plans with Rürup. I'll show you exactly how much you can save in taxes and what your projected pension will look like.
📖
Want to learn more first?
Read our detailed guide on the Rürup pension in Germany — tax benefits, ETF options, what happens if you leave Germany, and how to calculate your ideal contribution.
Read the guide →

FAQ — Rürup Pension (Basisrente)

Quick answers to the most common questions.

How much tax do I actually save with Rürup?+
Your tax savings depend on your marginal tax rate. If you're in the 42% bracket (income above ~€62,810), every €1,000 you contribute saves you €420 in taxes. Contributing the maximum €27,566 saves over €11,500/year. Even at lower tax rates, the savings are substantial. We calculate your exact savings based on your income.
Can I invest my Rürup contributions in ETFs?+
Yes — modern Rürup contracts offer ETF and fund-based investment options. You can choose from global ETFs (e.g., MSCI World, FTSE All-World), bond funds, or mixed portfolios. ETF-based Rürup plans typically offer much higher long-term returns than classic guaranteed-interest plans. We recommend providers with the best ETF selection and lowest fees.
What happens to my Rürup if I leave Germany?+
Your Rürup contract remains valid even if you leave Germany. You'll receive the pension from age 62 regardless of where you live. However, tax treatment depends on your country of residence at the time of payout and any double taxation agreements (Germany has one with India). We always discuss this with expats who may relocate.
Can I withdraw my Rürup savings as a lump sum?+
No. Rürup is designed as a lifetime pension — there is no lump-sum withdrawal option. This is a key difference from private pension plans. The upside is that your money is protected from creditors and insolvency. If you want flexibility for early withdrawals, a private pension may complement your Rürup plan.
Is Rürup worth it if I'm only in Germany for a few years?+
It depends. If you're in a high tax bracket, even a few years of maximum contributions create significant tax savings. The pension will be paid out from age 62 regardless of where you live. However, the pension will be taxed in retirement — so the benefit is greatest for those who contribute over many years. We model your specific scenario to see if it makes financial sense.
Ready to save taxes and build your retirement?
Independent advice · English & Hindi support · Free Rürup comparison