Next Generation Pension taxation
A little extra on top of your savings
The state refunds up to €1020 of income tax from your contributions
You can get a tax refund for contributions to your savings that are up to 10% of your annual gross income, but no more than €4000 per year. These include contributions to life insurance with savings with a minimum term of 10 years, as well as contributions to the III pension pillar.
You can take advantage of the tax refund when you declare your income for the previous calendar year to the State Revenue Service.
If submitting the income declaration is voluntary for you, you can submit it starting from 1 March.
If submitting the income declaration is compulsory for you, you can submit it from 1 March to 1 June. If your annual income exceeds €105 000, you should submit the declaration return between 1 April to 1 July.
You can submit and correct your income declaration within the following three years.
Example:
In 2026, you can submit not only the annual declaration for the year 2025, but also those for 2024 and 2023.
Payouts
You can access your Next Generation Pension savings anytime. There is no withdrawal or termination fee.
Agreement valid for more than 10 years
- If the amount of savings you applied exceeds the amount of premiums paid, the state will automatically deduct an income tax of 25.5% from the profit.
- If you make a partial withdrawal, you will not be able to receive tax refunds for further contributions.
Agreement valid for up to 10 years
- If you have received a tax refund for your contributions, you are required to submit an annual income declaration. In it, the amount of these contributions must be included as taxable income, which will increase your total annual income and the amount of tax payable.
- If the amount of savings you applied exceeds the amount of premiums paid, the state will automatically deduct an income tax of 25.5% from the profit.
- If you make a partial withdrawal, you will not be able to receive tax refunds for further contributions.
