Pension plan & income-tax deduction calculator

As an employee/individual, up to €1,500/year (€125/month). As a self-employed worker you can add up to €4,250/year more through a simplified employment plan, for a combined €5,750/year. The deduction is also capped at 30% of your net earnings.

Contributions reduce your general taxable base, so you pay less income tax. With your figures the refund is about €555/year (your marginal rate is 37%). It arrives when you file your tax return the following year.

The refund the tax office gives you is real money. If instead of spending it you reinvest it (into the plan or a fund), that refund also compounds for years — an extra pot that most calculators ignore entirely.

Not always. The money is locked until retirement (or specific cases), and on withdrawal it's taxed as employment income, not savings income — so the tax benefit is partly a deferral, not a pure gift. It works best if your marginal rate is high now and expected to be lower at retirement.

Almost always spread it out. Withdrawing everything at once stacks the whole amount on top of your other income in a single tax year, pushing you into higher brackets. Spreading it over several years (as an annuity) keeps each year's extra income smaller, usually at a lower marginal rate — the Rescate tab shows you the actual euro difference for your numbers.

It depends on your tax rate now vs. at retirement. The plan gets you a yearly refund but taxes the whole pot as employment income on exit; a plain fund gets no refund but only taxes the gain, at the lower savings-tax rate, when you actually sell. The Plan vs Fund tab compares both using the exact same real monthly outlay from your pocket.

Up to €5,750 a year (€479.17/month): the general €1,500 limit that everyone has (€125/month) plus an extra €4,250 (€354.17/month) that only counts if it goes into a simplified employment pension plan (PPES). On top of both, the reduction cannot exceed 30% of your net earnings from work and business activity.

Yes. The increment is conditional on the destination, not on being self-employed alone: it must go to a simplified employment plan for the self-employed, a sectoral plan, or an employment plan you promote yourself as a sole trader. Paying it into an ordinary individual plan does not qualify — that plan is capped at €1,500 no matter what.

Yes. The PPES can absorb the general €1,500 allowance as well as its own €4,250 increment, so a self-employed worker can contribute the full amount to a single plan. It does not work the other way round: an individual plan can never take more than €1,500.

Then the 30% cap, not the €5,750, is your real limit. You need about €19,167 of net income for the full allowance to be usable. Below that the calculator shows the 30% cap biting and tells you the amount that would be left without relief.

It depends on your marginal rate, not on the contribution alone. With your figures the refund is around €1,724 a year (marginal rate 30%), and it arrives with the following year's tax return. That refund is real money: if you reinvest it instead of spending it, it compounds too — that is the snowball this calculator models.

There are two different excesses. Anything above the absolute €5,750 limit has to be withdrawn from the plan. Anything that only exceeds the 30% of net income can instead be carried forward and reduced over the following 5 years, provided you request it expressly in that year's return.

Not automatically. The money is locked until retirement (or specific early-access cases) and the whole pot is taxed as employment income on the way out, not at the lower savings rate. It works best when your marginal rate now is clearly higher than the one you expect at retirement. The "Plan vs Fund" tab compares it against a plain index fund using the same real monthly outlay.