Changes to the taxation of voluntary pension savings from January 1, 2027
The tax treatment of personal voluntary pension insurance will change from January 1, 2027. However, there will be no changes to the tax treatment of pension insurance paid by employers, and such contributions will continue to be tax-deductible.
The change is based on an amendment to the Income Tax Act approved by Parliament and confirmed in June 2025.
Personal voluntary pension insurance premiums paid up to the end of 2026 will remain tax-deductible under the current rules, up to a maximum of €5,000 per year. Only premiums paid from January 1, 2027 onward will no longer be tax-deductible.
When the pension is later withdrawn, only the return (profit) on contributions paid after January 1, 2027 will be taxed as capital income, while the return of the paid-in capital will be tax-free. The tax treatment of contributions paid before 2027 will remain unchanged.
In connection with the legislative amendment, a transitional provision is also introduced, according to which a voluntary pension insurance policy with a total value of no more than €5,000 at the time the law enters into force (January 1, 2027) may be fully withdrawn and terminated during 2027–2028.
The change applies to voluntary individual pension insurance policies. Existing contracts will continue as normal, and the change does not require immediate action.
For further information, please contact your insurance advisor.