Term and legal background of ‘Altsparer’
The term Altsparer refers in German law to individuals who, before certain historic cut-off dates, entered into savings contracts or made deposits as part of state-sponsored or regulated forms of saving. ‘Altsparer’ enjoy certain special rights and provisions, particularly in connection with savings products of the former GDR, as well as specific regulations within German deposit protection and banking law.
Definition of ‘Altsparer’
An ‘Altsparer’ is a natural or legal person who, prior to a legally defined cut-off date, acquired legitimate claims from a savings deposit. The key regulations concern savings contracts that were concluded in the GDR before 1 July 1990. Legally, the term ‘Altsparer’ is used particularly in connection with the Unification Treaty, the Property Act, and the Altsparer Act.
Historical development
The distinction of ‘Altsparer’ arose during German reunification in connection with the economic and legal alignment of the two German states. Citizens of the GDR had various forms of savings, in particular building loan contracts, savings certificates, or savings accounts. The economic conditions and interest rates greatly differed from West German standards, which is why, after the GDR’s accession to the Federal Republic, legislators established regulations on how to deal with these holdings.
Statutory basis and areas of regulation
Unification Treaty and subsequent regulations
The Unification Treaty of 31 August 1990 forms the legal foundation for the treatment of savings accumulated in the GDR. In Article 21 the continuation of claims from savings contracts concluded before 1 July 1990 is regulated. The primary aim was to ensure equal treatment with West German savers and to protect the trust of savers in the financial system.
Unification Treaty – Key points for ‘Altsparer’:
- Continuation and validity of savings contracts and balances in the currency of the Federal Republic (DM)
- Protection from disadvantages due to changes in interest rates or maturities
- Validity of protection provisions and equal treatment in the case of bank takeovers
Altsparer Act (Law Regulating Outstanding Property Issues for Altsparer)
The so-called Altsparer Act (Law Implementing the Altsparer Regulation of 22 March 1991) specifies the claims of Altsparer and regulates special procedural principles. This particularly includes the following aspects:
- Right to payment or crediting of already accrued interest
- Transfer of old contracts to West German banks while preserving existing rights
- Obligation for affected savers to apply and provide evidence
- Exclusion of double claims and limitation periods
Case law and administrative regulations
Practical implementation was specified by numerous court and administrative decisions, in particular by the Federal Administrative Court and the Federal Court of Justice. It was especially clarified that a claim to the original conditions only exists insofar as this is compatible with the law of the Federal Republic of Germany and no fundamental macroeconomic reasons oppose it.
Specific legal questions and special features
Interest rate and currency conversion
The changeover of the currency from East German Mark to Deutsche Mark led to contractual adjustment of all savings contracts. The amount of claims was determined according to specified conversion rates and interest regulations. Disputes, especially the ‘interest differential action’, concerned the level of compensation for lost interest income or a transition to the West German legal system with minimal losses.
Limitation of claims
Claims from old savings contracts are subject to the general limitation periods under German civil law (§§ 195 et seq. BGB), unless special provisions apply. Many claims had to be registered within certain deadlines after the entry into force of the new statutory regulations. Subsequent assertion is generally excluded.
Special cases: minors and heirs
Old savings contracts for minor savers and for heirs are subject to special protection provisions. In particular, the aim is to maintain the protection of existing rights and to ensure the possibility of transferring claims.
Significance and practical relevance
In practice, the term ‘Altsparer’ is today mainly relevant in connection with the processing of ‘old savings balances’ and as the legal basis for historically outdated savings products. Banks and savings banks with portfolios taken over from the relevant GDR institutions must review supporting documents and, if applicable, make payments. In addition, the regulations for Altsparer serve as a model for the state’s approach to system changes and the protection of citizens’ rights also with respect to private assets.
Impact on deposit protection
The inclusion of Altsparer in the deposit protection system of the Federal Republic of Germany primarily served to build public trust and provide legal certainty during the transformation following reunification. Altsparer generally have the same protection rights as West German savers.
Further literature and sources
- Unification Treaty of 31 August 1990 (BGBl. II p. 889)
- Law Implementing the Altsparer Regulation of 22 March 1991 (BGBl. I p. 744)
- Case law of the BGH and BVerwG regarding the Altsparer regulation
- Federal Law Gazette and legislative materials of the Federal Government
Note: This article explains the legal aspects of the term ‘Altsparer’ based on publicly accessible sources and without referencing specific individual cases. Clarification of individual circumstances should be based on the applicable laws at the time and current case law.
Frequently Asked Questions
What legal aspects must be considered in determining the allowances for Altsparer?
When determining the tax allowances available to Altsparer under German income tax law, it is particularly important to observe the cut-off date rules and the personal requirements. The so-called ‘saver’s allowance for Altsparer’ applies to people who already held the relevant capital investments or building loan contracts before 1 January 1993. Decisive is that the capital was invested before this date and that certain requirements of § 52 (53) of the EStG (Income Tax Act) are met. Legal review requires a precise inventory of all investments existing before the cut-off date. For recognition as an ‘Altsparer’ within the meaning of the law, the corresponding contract documents must also be retained and presented in case of dispute. If there are uncertainties as to whether an investment qualifies for the old regulation, legal classification must be made based on the contract at the time, its execution (e.g. deposits, credited interest) as well as the tax treatment in subsequent years. Subsequent changes to the contract may result in loss of old contract status for allowance purposes.
What evidence must Altsparer provide to the tax office?
From a legal point of view, proof of status as an Altsparer is critical for recognition of tax benefits. The required evidence includes all contract documents, account statements or confirmations from the relevant bank or building society, showing that the capital investment was established before 1 January 1993. The decisive proof is the original contract date. Amendments or addenda must be fully documented to ensure an unbroken chain of evidence. It is also essential to keep all documents relating to the duration, especially in the case of cancellations, transfer of contract or changes of ownership. The tax office may require comprehensive disclosure of these documents as part of its investigation to verify Altsparer status and the application of special legal privileges.
How does a contract amendment affect Altsparer status?
Legally, any change to the original contract—such as amendments, consolidation of contracts, change of savings product, or transfers to third parties—is viewed critically. Such changes can result in loss of entitlement to the old regulations, as the tax authority will assess the substance and type of the changes during the tax examination. Contract changes that do not fundamentally alter the economic substance of the original agreement—for example address corrections or name changes without affecting the savings terms—are generally harmless. However, mergers with newer contracts, changes in conditions, or increases in the invested amount usually lead to the legal loss of old contract status. The review is conducted based on all relevant criteria and in accordance with supreme court decisions.
Are interest from old contracts still tax-free?
Interest income from capital investments protected under the Altsparer rules can, under § 52 (53) EStG as it applied before 1 January 2009, be tax-free. This tax exemption, however, only applies to income attributable to capital invested before the relevant cut-off date. A seamless documentation of the source of the capital and continuous contract administration without substantial changes is crucial. Exceeding the applicable allowance thresholds (e.g. €1,370/€2,740 for married couples) must be noted, as this leads to partial tax liability. Furthermore, since the 2009 assessment period, the introduction of the withholding tax on newly concluded contracts must be considered. Old contracts retain their advantages only if they have not been substantially changed and the requirements for protection remain met.
To what extent do spouses benefit in legal terms from Altsparer contracts?
Spouses may enjoy special benefits from old contracts during tax assessment if both partners jointly owned a capital investment contract by the cut-off date. Legally, when assessed jointly, the double allowances apply (§ 20 (4) EStG in connection with § 52 (53) EStG). However, the tax office requires precise proof that both spouses were or are co-owners of the relevant contract. If the contract is transferred or added to the marriage after the cut-off date, the requirements for joint use of the allowance are no longer legally met. Changes in ownership, such as inheritance or gift, are subject to close legal scrutiny concerning potential abuse or unjust enrichment.
How is the tax treatment handled upon the death of an Altsparer?
Legal successors of a deceased Altsparer—such as in the course of inheritance—do not automatically receive the benefits of the Altsparer privilege. The decisive factor for tax treatment is whether the privilege passes to the heirs under inheritance law. The highest court rulings state that only the original contractual partner is protected and the privilege is not transferable to heirs or recipients, unless both persons were co-owners at the time of contract conclusion. After the Altsparer’s death, capital gains are taxed as part of the estate under the current tax law; the Altsparer privilege generally expires upon the death of the privileged saver.
What role do court decisions and administrative decrees play in connection with Altsparer?
Court decisions, especially those of the Federal Fiscal Court, play a decisive role in interpreting the relevant statutory provisions regarding Altsparer. They specify the requirements under which an old contract is recognized and tightly define the permissible boundaries for contract amendments. Administrative decrees issued by the Federal Ministry of Finance provide additional guidance on interpretation and application in cases of doubt, particularly with regard to burden of proof and the handling of borderline cases. However, only statutory regulations and court decisions are legally binding, while administrative decrees are generally binding only for the tax administration, not for the courts or taxpayers.
