Worked in Germany and spent the rest of your life somewhere else?
Some do, but what do you have to consider when you take your pension with you to another country?
After a long working life, many people hope for a relaxed retirement.
Around 1.8 million pensioners have their pensions transferred abroad, according to the German pension insurance.
This includes everyone who has earned a pension entitlement in Germany, including foreigners who have worked in Germany.
Are you unsure whether your pension will be sufficient in old age?
Find out.
Pension abroad: If you leave Germany after your working life
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Is the pension in Germany sufficient or do you expect advantages from taxation abroad?
© Andrey Popov/Imago
If you want to turn your back on Germany as a pensioner, simply take your pension with you.
However, there are a few things you need to be aware of.
If you move permanently within Europe, Iceland, Liechtenstein, Norway or Switzerland, in most cases nothing will change for you, according to the German pension insurance.
Then the money is simply transferred to your account as usual.
However, there may be deductions in individual cases if you have also entered periods abroad as part of your pension entitlement.
If this is the case, there is no harm in seeking advice.
This is possible, for example, with the German pension insurance.
There are also social security agreements in Germany with other countries that are intended to ensure that you do not face any disadvantages if you emigrate there.
There are agreements with the following countries:
Albania
Australia
Bosnia Herzegovina
Brazil
Chile
India
Israel
Japan
Canada and Quebec
Kosovo
Morocco
Moldova
Montenegro
North Macedonia
Philippines
Serbia
South Korea
Tunisia
Turkey
Uruguay
USA
Tax tricks: How to save money on your tax return
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Pension abroad: annual check of whether you are still alive
If you have decided to spend your pension abroad, you will receive an annual mail from the pension service.
Usually in the middle of the year you will receive what is known as a “certificate of life”, informs the German pension insurance, which you have to have confirmed and send back.
German diplomatic missions or financial institutions, for example, can issue confirmations.
You do not need a confirmation in the following countries:
Belgium
Bulgaria
Denmark
Finland
France
Israel
Italy
Croatia
Luxembourg
Netherlands
Austria
Poland
Sweden
Switzerland
Spain
Hungary
United Kingdom
Fees for pension abroad?
If you live outside of Europe you may face conversion fees.
Among other things, it is also about exchange rate losses between the euro and the currency that applies in your adopted country.
If you have a foreign bank account, there may also be fees for
transferring the pension
.
You should definitely think about your financial situation and how you want to withdraw/receive money before planning a move.
You should also take general precautions.
About three months before emigrating, you should inform the German Pension Insurance and submit your contact details.
You should also ask your health insurance company what the possible insurance status looks like abroad.
Taxes on pension?
It depends on the agreement where you pay
If you are only abroad temporarily, i.e. a period of around six months or 183 days, the taxes on the pension will continue to be paid in Germany.
If the stay is longer, it depends on whether Germany has signed a so-called double taxation agreement (DTA) with the country of your choice, informs the
Finanztip
portal .
The agreement determines in which country the taxes have to be paid.
Example: German pensioners emigrate to Poland.
In this case, the DBA regulates that the pension is taxed in Germany.
Taxation law is different in Greece, for example, where German pensions are taxed by the Greek tax authorities,
Finanztip
informs .
The pension in Greece is taxed at seven percent, which should attract many people.
The
Tagesschau
reported that Greece wants to increase public revenue and become more attractive to people.
A German couple took advantage of this, for 1,200 euros they live in Greek paradise.
Rubric list image: © Andrey Popov/Imago
