Cross-border workers living in France and affiliated with the German system often ask the same questions: How do you declare a pension received after a workplace accident in Germany? Can private health insurance contributions be deducted? And what about German supplementary pensions — are they treated like French retirement savings plans (PER)? Here are clear answers to these three real-life situations.
German Workplace Accident Pension: Taxable or Exempt?
A pension paid by Germany to a French resident following a workplace accident is taxable in France, under the France-Germany tax treaty.
Good news: If the pension is paid under similar conditions to those of a French social security scheme, it may qualify for full or partial tax exemption.
- Full exemption: applies to pensions granted under legislation for workplace accidents or occupational diseases.
- 50% exemption: applies to temporary benefits paid by social security.
German Private Health Insurance: Are Contributions Deductible in France?
No, if the German private health insurance is optional, the contributions are not deductible in France.
Only mandatory contributions to a public scheme or those required under European regulations are deductible.
Contributions to a freely chosen private German fund (without legal obligation) are considered personal expenses, and thus not tax-deductible.
German Supplementary Pension: Is It Treated Like a French PER?
No. In France, only contributions to a PER (Plan d’Épargne Retraite) that meets the requirements of Article L.144-2 of the Insurance Code are deductible from taxable income.
This means that German supplementary pension schemes that are not governed by French regulations are excluded.
Any contributions made to individual or voluntary German contracts (mutuals, provident funds, etc.) are not considered French PERs and cannot be deducted from your taxable income.
