Majorca Property News

Property Mallorca: Riester pension now under palms

 

From the sea a fine breeze blowing, the palm trees swaying in the wind. And you're sitting with a book on the terrace of your small finca on Mallorca.So or something like that put a lot of Germans in front of their well-deserved retirement. The European Court has ruled that taxpayers can enjoy retirement in the EU, Norway, Iceland and Liechtenstein also with payments from their Riester pension.

From the sea a fine breeze blowing, the palm trees swaying in the wind. And you sit with a book on the terrace of your small farm on Majorca. Or so the lips of many Germans in front of their well-deserved retirement. The European Court has ruled that taxpayers can enjoy retirement in the EU, Norway, Iceland and Liechtenstein also with payments from their Riester pension. The court judged that the regulations failed to state-subsidized Riester pension in three points of EU law (ref. C-269/07).


The federal government improved promptly and now adopted by EU compliant arrangements for Riester pension. And in particular, provide for cross-border workers and those who wish to retire under the palms on Majorca or in the lavender fields of Provence, before significant improvements. Now also available Cross-border commuters who live in France for example can, but work in Germany and thus also pay into the statutory pension insurance, take out a Riester pension and apply for state grants. Each investor will receive 154 euros a year. For each child there are 185 euros. If the offspring of the light of day after 2007, the state even donated $ 300. Alternatively, investors can offset the payments to the Riester pension as special issues in the tax return - at least up to 2100 euros. The only condition: The investor must pay four percent of its previous year's gross income minus government payments into the contract - a maximum of 2,100 euro.
But the EU-compliant system for the Riester pension now borders a different group of people. Namely, those who live in Germany and work in other EU countries. Because these are mostly in foreign compulsory annuities in future and therefore no longer eligible for state grants. But the government shows itself to accommodating the affected Riester savers: The new rules apply to contracts from 1 Be completed in January 2010.
Also Riester savers who spend their retirement benefits in the EU or EEA country (European Economic Area), of the new scheme. For they must state allowances and benefits will no longer reimburse to the state.
Who builds a finca in Mallorca, or buys a cottage in Austria, may in the future residential use Riester, to finance the property. The only condition: The apartment must be the principal residence. Houses are of support continues to be excluded.