Receiving German pension outside of Germany
If you receive a German pension, you are also entitled to receive it from outside of Germany. Learn here which conditions you need to meet for that. As a lawyer for social law and tax law I will gladly advise you.
Can I receive my German pension from outside of Germany?
So long as you regularly paid into the German pension fund, you are also entitled to receive a German pension from outside of Germany. Depending on where you have your place of residence, you have to turn to differing institutions. If your stay outside of Germany is temporary, you can turn to your regular pension fund and receive your regular pension there.
However, if you permanently live outside of Germany, you first have to reach out to the locally responsible office of the respective country. This office then passes on the request to Germany.
Does my German pension get taxed outside of Germany?
Since 2010 all pensions are limited taxable, even if they are received outside of Germany. However, the type of taxation depends on several factors.
The determining factor is your actual place of residence. Depending on the country there are different agreements to regulate which country taxes the pension. There are combinations where only the state of residence or only Germany taxes the pension, but there are also combinations where both states tax the pension. A list of countries where only the state of residence taxes the pension can be found on the info website of finanzamt-rente-im-ausland.de. An extended list of existing double taxation agreements can be found at the federal ministry of finance.
In the context of a consultation, I will self-evidently determine with you, which type of taxation applies to you and what applications you need to write to enjoy your well-earned pension.
What determines where exactly the place of residence is?
As long as your place of residence is still in Germany, your pension still normally has to be taxed in Germany. For that it’s enough to still own real estate in Germany that is only partially rented out. Another factor is the time you spend in Germany: even if you don’t own real estate and for example have gifted it to your children, but still regularly visit Germany, the tax office can decide that your habitual abode is in Germany. This applies if you are in Germany for more than 183 days per year. The pension payments are then taxed normally in Germany. You have to have permanently moved to another country for more than 6 months for your habitual abode to be considered that other country.
What tax-related duties do I have if I have a German pension outside of Germany and no other income?
If you only have the pension from Germany and don’t have other income outside of Germany, you are a limited taxpayer but still have to normally provide an income tax declaration and pay the taxes applying to your pension. Beyond that the regular tax exemption limit doesn’t apply and the costs of health insurance can’t be claimed as special expenditures anymore. In those cases, I recommend applying for treatment as unlimited income taxpayer (along § 1 Abs. 3 EstG) so you are taxed normally again.
Regularly sending your proof-of-life
In many countries you regularly have to confirm to the German state or rather the German social pension fund that you are still entitled to a German pension. The “declaration for continued receiving of a pension from the federal republic of Germany” confirms through your signature that you still want to receive a pension. Additionally, you need an official authentication that you can get locally from different public offices.
Extensive consultation around the topic of pension outside of Germany
Life in retirement should stay as pleasant and uncomplicated as possible – but with the many relevant factors applying to pension payments outside of Germany, your pension can cause much worry. An exhaustive consultation is therefore a must. With my deep knowledge of tax law for senior citizens and of pension I will gladly help you get the most out of your pension. We will discuss together where you want to spend your retirement, what income you have and how you can enjoy your sunset years without additional tax burdens. Reach out to me – we can gladly make an appointment, even online or by phone.
I will gladly advise you!
Book an appointment for a free initial assessment or contact me by phone, e-mail or via my contact form:
Lawyer Christian Janssen from Berlin
Other areas of law
Inheritance law
I would also be happy to execute your will on your behalf. I would also be happy to advise you on gifts and the tax implications of anticipated succession.
Pension law
I would also be happy to assist you in drawing up your own personal living will, health care proxy, and power of attorney.
