Retiring abroad: Germany

If you dream of retiring abroad like many UK pensioners, it's a big decision that can affect your pensions. In a poll carried out in 2006, the majority of Britons, 53%, would consider emigrating. Indeed, more than 300,000 individuals leave the UK each year to start a new life overseas. Estimates suggest that up to 5.5 million British nationals now live abroad.

Germany is the fourth largest expat destination, for Britons who live abroad in Europe. According to United Nations data. The total number of British citizens estimated to be living in Germany in 2019 was 98,553. As of 2017, the Department for Work and Pensions data shows that 14,700 Britons received a UK state pension in Germany.

Ranking British expats by country

• Australia
• USA
• Canada
• Spain
• Ireland
• New Zealand
• France
• South Africa
• Germany
• Italy

 

Retiring abroad Germany: post-Brexit

The problem for most UK nationals. Is that, most UK advisers are not regulated to advise EU residents. These went with Brexit. Unless they are regulated in the EU, they should not be advising you.

If the UK firm has taken steps to advise EU residents. They may not be aware of the complexity of the German tax system.

You will need to find an advisory firm that is both regulated in the UK and German. The firm would also require knowledge of UK and German taxation and their interaction.

Retiring abroad Germany: taxation advice

If you move abroad, you don't have to transfer your UK pension pot. You can choose to leave it in the UK.  You can then take an income from it in the UK. 

As a German resident, your UK pension are taxable in Germany. This must be declared in Germany. 

It is important to note that Germany has no 'tax-free lump sum'. 

If you have not moved to Germany yet and want a lump sum. Taking it while you are still a UK resident will save you tax.

Retiring abroad Germany: visas

Unfortunately, there is no retiree visa specifically in Germany. However, there are various visas to apply for before retirement age.

Employment visa

Applying for an employment visa a few years before retirement age. This allows you to work and live in the country. Therefore, allowing you to apply for permanent residence before you retire.

An application for a EU Blue Card  is also possible. This leading to permanent residence in four years or less, especially with integration courses.

Self-employment/freelancer visa

if you're a self-employed person or freelancer you can apply for a self-employment visa. This requires a viable business plan and proof of financial resources to support your venture.

Business (investor) visa

If you have your own business. A business visa, allows you to open a new business in Germany. Or invest in an existing one. The required investment amount may vary between different German states.

Family visa

Suppose you have close family members who are German citizens or legal residents. In that case, you may be eligible for a family reunification visa. This visa allows you to live in Germany with your family members.

Retiring abroad Germany: health insurance

Health insurance is mandatory for all residents. The country offers both public and private insurance options. 

Expatriates are encouraged to purchase a private policy. While they settle down until they become eligible for public insurance.

Qualifying Recognised Overseas Pensions Scheme (QROPS)

The setting up of a foreign exchange account should address currency risk.

Alternatively, expats often consider transferring their pensions to a QROPS, avoiding currency transfer risks.

 

Retiring abroad:  Australia | New Zealand | USA | Canada | Spain | Portugal | Italy | France | Germany | Ireland