Citizens Relief Act 2010

Increasing your net income

Since January 2010, everybody paying into a public or private health insurance (including long term-nursing-care) can offset the premiums from tax.

This is because of the Federal Constitutional Court's verdict that health insurance payments help secure a citizen's existence and should therefore be tax free.

Contributions can now be considered special expenditure for tax purposes.

Only cover corresponding to public health insurance level is tax deductible: top-ups such as private hospital room, high dental replacement tariffs and alternative medical treatment, are not included.

Up to 79.59% of the monthly premiums for public or private can be set against tax in most cases.

The costs of the nursing care insurance (Pflegeversicherung) are 100% tax deductible.

This tax advantage applies to every member of the family, i.e. husband, wife and each child for which child allowance is payable.

In many cases, contributions to supplementary health insurance policies, occupational disability etc. can still be tax deducted.

The private health insurance companies send details of your policy payments directly to the tax authorities (Finanzamt) - that's why you now have to include your personal tax ID number (persönliche Steueridentifikationsnummer) on the application form.

Finally, your health cover has not changed with the introduction of this new law. The quality remains the same. The only difference is: your financial burden is lower!