As of: January 29, 2024, 7:08 p.m
By: Bjarne Kommnick
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Many retirees struggle with financial worries.
Some are therefore considering emigrating.
In some places this can be worthwhile.
Bremen – Anyone who pays into the pension system for a long time should be entitled to be financially secure in old age.
But only recently did the President of the Confederation of German Employers' Associations warn of a hole in the pension fund.
The fate of a married couple also recently showed that when it comes to care, pensioners in Germany can be worse off than recipients of citizens' benefit.
One or two pensioners therefore decide to emigrate to another country - with the hope of fewer financial problems.
In some cases, this step may be worthwhile.
Where are retirees most likely to live without financial worries?
Financial paradise for pensioners – Portugal has no longer been one of them since January 1st
For many years, Portugal in particular was considered a pensioners' paradise.
But as
swz.de
reports, this could end on January 1, 2024.
At the turn of the year, the Portuguese government allowed a law that was passed by the government at the time to expire in 2009.
It said that pensioners from abroad would be exempt from income tax on their pension for ten years from the time of their move.
If pensioners lived in Portugal for more than ten years, a tax rate of 10 to 20 percent was then due.
Most retirees would like to have a financially worry-free retirement - but that is often not even possible.
© Christian Charisius/dpa
It is highly unlikely that the government will reintroduce this regulation, which has now expired.
As
taz.de
reports, the socialist Prime Minister António Costa explained in an interview: “Maintaining this measure would extend the tax law and would also drive up prices on the real estate market further.”
Living abroad tax-free – these two conditions must be met
The portal
wohnsitzausland.com
, which, according to the website operators, has set itself the task of “providing transparent information about a large number of tax-favorable countries of residence”, explains that there are currently seven countries in which German pensioners can even live tax-free.
For this to happen, two conditions would have to be met: “First, the pensioner’s country of residence must have the right to tax the German pension in accordance with the double taxation agreement with Germany.”
This is not the case in most countries “and Germany has the right to tax even if the recipient of the pension lives abroad”.
In addition, the country is not allowed to tax the pension, although it would have the right to do so under a double taxation agreement.
Seven countries waive taxes for senior citizens from Germany - Albania as a pensioner's paradise?
According to the double taxation agreement, 37 countries would have the right to tax German pensions, but according to the portal, seven countries would waive this and thus create the conditions for a tax-free pension.
For example, pensions in
Albania
are tax-free for citizens and EU citizens.
In addition, low living costs and good weather conditions could attract retirees to retire in Albania.
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Despite double taxation agreements, these countries do not tax German pensions
Albania
Moldova
Japan
Kuwait
Mauritius
Thailand
Vietnam
The same applies to
Moldova
, where pension income for foreigners is also tax-free.
To do this, seniors would have to apply for a Type D visa, which makes it possible to travel to the country and stay for a longer period of time.
Thailand offers foreign pensioners “retirement visas” for tax-free benefits
Low cost of living and tax-free pensions also apply to retirees in
Thailand
.
To do this, pensioners have to apply for the so-called retirement visa, which could be extended year after year - provided the people do not become criminals.
Pensions are
also tax-free in
Vietnam .
According to wohnsitzausland.com,
the country is
easily accessible, but it is much more difficult to get a permanent residence permit.
There is no pensioner visa for foreign seniors, but pensioners could apply for a visa for five years if parents or spouses have Vietnamese citizenship.
Kuwait, Mauritius and Japan tax-free for pensioners - but still complicated or expensive
Pensions for foreign seniors are also tax-free in Kuwait, Mauritius and Japan.
However, according to the portal, high living costs and complex applications are more of an obstacle to taking advantage of the tax havens.
Extremely high temperatures in
Kuwait
and, for some, a possible general ban on pork and alcohol could put a damper on emigration.
In
Mauritius
, on the other hand, pensioners must transfer at least $18,000 to their account annually in order to enjoy the financial benefits there.
1,500 US dollars would be due upon application.
In
Japan,
pensioners would have to expect living costs of between 2,000 and 2,500 euros, which could put the local tax exemption into perspective for most people.
Pensioner's paradise Greece: Only under certain conditions
Although pensioners in
Greece
have to pay taxes on their salaries, the Mediterranean country is still considered a kind of pensioner's paradise.
Seniors pay just seven percent income tax on German pensions, as the law firm Juhn Partner reports.
This applies to pensions, rental income, interest, dividends and capital gains from foreign sources.
However, income from Greek sources would be separately subject to Greek tax law.
To do this, pensioners would have to submit an application to the tax office in Athens by March 31st in order to enjoy tax advantages in the current calendar year.
In addition, there must not have been unlimited tax liability in Greece in five of the previous six years.
In addition, proof of foreign pension or pension receipts is required, which also includes the amount of income.