Many pensioners in Germany have to pay tax on their pensions. Those who spend their pension abroad may also have to pay tax.
Retire, earn a pension in Germany and enjoy your money in a warm holiday country. This feature might appeal to some older people.
Some countries are also more suitable for retirement abroad. However, caution is advised: in some cases there is a risk of losing money.
Caution before leaving Germany
Retirees should definitely take care of their finances before leaving Germany.
In some countries, tax is paid on income from Germany. This was announced by the Neubrandenburg tax office, which is responsible for all pension recipients residing abroad.
Pension taxes will also increase for the elderly in Germany in 2025, according to German media.
Pension taxes: These rules apply to elderly people abroad
Pensions abroad are not always taxed. It depends not only on the type of pension, but also on the place of residence. This depends on whether Germany has entered into a double taxation treaty.
This regulates whether the country in which a person lives, the country from which the money comes or even both may collect tax, the tax administration explains.
If double taxation applies in the new place of residence, pensioners can apply for tax exemption there, German media write.
The regulations that Germany has agreed with other countries are individual. The Ministry of Finance provides detailed data for each individual country.
Living abroad or just staying? This distinction is important for retirees
However, even if the contract states that taxes are to be collected in the country, this may not always be the case, German media point out. Fenix-magazine.
The key is how long pensioners stay abroad. Only those who spend more than six months or 183 days outside Germany must expect further tax requirements.
Everything else is considered a temporary stay abroad – and tax is paid only in Germany. There is a difference in taxation abroad: While the basic relief applies in Germany, income abroad must be taxed from the first euro.
