Retirement: Pension abroad: This applies to tax and health insurance

More and more Germans want to spend their retirement abroad. What then applies to tax and health insurance in retirement.

Many dream of spending their old age in the mountains or by the sea. Almost a quarter of a million Germans are already receiving their pension abroad transferred. If you want to move to Austria, Spain or far away countries, you should check beforehand what that means for taxes and health insurance.

Pension abroad: This is crucial for the tax

Anyone who draws a pension from Germany is, in principle, also in Germany taxable. How much of the pension taxed depends on the date on which the pension begins. Those who retire in 2022 have to pay tax on 82 percent, 18 percent remain tax-free. This results in the pension allowance, which remains the same until death. The same applies to pensioners basic allowance. Who with his pension over the allowances lies, one must tax declaration hand over.

Whether foreign pensioners are subject to tax in Germany also depends on where they live retirement spend. If you live in the USA or Switzerland, for example, you have to pay tax on your pension there. The reason: double taxation agreements that regulate which state taxes the income. Germany also has such agreements with Spain and Austria, for example. Anyone who lives there is taxed in this country. Different regulations may apply to private and company pensions.

will income taxed at the foreign place of residence can be quite attractive from a tax point of view. Interested parties should therefore obtain thorough information about the tax system in the country of destination.

What taxpayers in Germany should pay attention to

Even if Germany has the right to tax, pensioners who permanently move their place of residence abroad are only in Germany limited tax liability. Permanently means: more than six months per year. So who only in the summer Majorca stays, don’t have to worry.

On the other hand, anyone who spends more than six months abroad loses the basic allowance; Taxes are therefore due from the first euro. In addition, neither can Spouse splitting or medical expenses be invoked. Likewise fall allowances for children and single parents away. The tax burden is thus significantly higher.

Anyone who submits an application for “unlimited tax liability” in Germany can prevent this. Condition: Foreign pensioners receive at least 90 percent of their income in Germany. Or they have foreign income below the basic allowance. The application is available at Tax Office Neubrandenburgwhich is responsible for all German pension recipients abroad.

Pension cuts: in which cases what threatens

For some forms of pension there are special regulations. In the case of the Riester pension, for example, the state subsidy must be repaid if the recipient is resident outside the European Economic Area (EU plus Iceland, Liechtenstein and Norway).

who one disability pension may receive less or nothing abroad. And that is when the pension is paid because there is no suitable one in this country Workplace could be found – and not only for medical reasons.

Further special regulations apply if retirees have claims from areas outside of today’s Federal Republic of Germany, for example from Poland or other Eastern European countries areas of origin. Then there may be reductions. Interested parties should therefore first contact the German pension insurance seek advice.

What applies to health and nursing care insurance

Anyone who spends their retirement in a country other than Germany in the European Economic Area usually remains in German health and long-term care insurance. The prerequisite is that in Germany you have a statutory pension received and in the new country of residence has no further entitlements (e.g. because you are employed or receive a pension). The same applies to anyone who receives benefits from a professional pension scheme or a civil servant pension.

However, those interested should definitely find out which services are available healthcare system in the destination country for locals. Because this is the only one you get as an emigrant. And the older you get, the more likely it is that you will need to see your doctor more often.

Those who want to go abroad must check whether Germany has a social security agreement with the new state. This determines whether emigrants are still insured in Germany. The contact person for questions is the German Liaison Office for Health Insurance – Abroad.

This article appears in cooperation with The money guide for consumers is part of the Finanztip Foundation.

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