German Pension Insurance: Moving Abroad
More and more people are considering retiring abroad. They are looking for a relaxed lifestyle, attractive climate, or lower living costs. As emigration experts, we will take a closer look at the topic of “retirement abroad” below. In our overview, we will highlight the reasons why life in other countries is so tempting for many.
Retirement Abroad: What are the most popular countries for retirement?
For many people, retirement is the perfect opportunity to realize the dream of moving abroad and receiving money from the German pension insurance abroad. But which countries are the favorites for relocation? These include:
- 1️⃣ Cyprus: The Mediterranean island is in first place. This holiday paradise offers sunny weather, beautiful beaches and a relaxed lifestyle. It is known for its low cost of living and high-quality healthcare system. In addition, the Non-Dom status offers many advantages for travel-loving pensioners.
- 2️⃣ Portugal: Portugal is another favorite. With its mild climate, affordable lifestyle and excellent healthcare system, it is an ideal place to retire.
- 3️⃣ Hungary: Life is really affordable and many people speak German.
- 4️⃣ Other countries of the European Union such as Italy, France, Greece and Spain: These countries are also on the list of top destinations. They offer a rich culture, a pleasant climate and good health services.
Pensioners who have taken the plunge often share their positive experiences. Many emphasize the improvement in their quality of life. They experience the feeling of adventure that life abroad brings. Doesn’t that sound tempting?
Pension service inside and outside the EU: This applies to countries with social security agreements
A social security agreement is like an international safety net. It offers numerous advantages for pensioners who plan to spend their retirement years abroad in Cyprus. Germany has established such safety nets with all EU countries and many other countries worldwide so that the money in your pension account arrives abroad if desired. This protects and guarantees the social security rights of citizens. One of the biggest advantages of these agreements is ensuring that pension claims are recognized and pension payments can be made across borders. They also help to avoid double insurance or insurance gaps. But beware! The exact conditions, effects, exceptions and restrictions may vary from country to country for each individual.
Therefore, you should thoroughly research before moving abroad and, if necessary, seek professional advice from a tax advisor. He will give you answers to this topic. This ensures that you take advantage of all the benefits and do not experience any unpleasant surprises.
Spending your retirement abroad - Which documents you should definitely not forget
Are you planning to spend your retirement in another country? Great idea! But before you set off to explore the world, there are some important documents that you should definitely not forget. These are:
- Passport: That goes without saying, doesn’t it? Make sure it is still valid for a long time.
- Pension statement: This document proves that you are a pensioner and what claims you have. This way you can prove your pension claim.
- Registration certificate: This allows you to prove where your main residence is. In Cyprus, this is done with a utility bill and a lease agreement of at least 12 months. You can use this to apply for the Yellowslip. This is how residence in Cyprus takes place.
- Financial documents: These include bank statements, tax documents and, if applicable, proof of additional income. The amount of the pension that is received in the account should match that of the pension statement.
- Proof of health insurance: This is important to ensure that you can receive medical care in an emergency.
- S1 form: If you are insured through your pension and would like to become a member of a public health insurance fund in Cyprus, for example, then you need this form from the German health insurance fund. This gives you a claim to the services of the Gesy healthcare system.
And how do you store documents? Well, it is always a good idea to keep copies in a safe place. It is best to also create digital copies and save them on an external hard drive. This way you have access to them anytime and anywhere. Don’t forget: Good preparation is the key to a carefree retirement abroad. So, pack your bags and off you go!
Retirement provision: How to apply for a foreign pension?
Spending a relaxed retirement in other countries is a dream that many people cherish. But how do you actually apply for a pension for abroad from the German pension insurance? Below we give you a step-by-step guide on how to apply for your pension abroad.
Step 1: Inform yourself
First of all, it is important that you inform yourself thoroughly. How much pension can you expect? Which countries have a social security agreement with Germany? You should clarify these and other questions before submitting the application.
Step 2: Obtain the necessary forms
To apply for your pension abroad, you need certain forms. You can request these from the German pension insurance or download them from their website.
Step 3: Fill out the application
Now it’s time to fill it out. You should provide all information carefully and truthfully. Remember that false information can lead to problems.
Step 4: Submit the application
Once you have filled out the application, you can submit it to the German pension insurance. There it will be checked and processed.
Step 5: Wait for the decision
After you have submitted your application, you must wait for the decision of the pension insurance. This may take some time. With the calculated pension contributions, you can then emigrate to Cyprus.
Step 6: Enjoy your retirement abroad!
Once your application has been approved, you can enjoy your pension abroad. We are happy to help you with emigrating to Cyprus.
Where will your pension be taxed?
If you spend your retirement abroad, the question quickly arises as to where your pension will be taxed. There are many different tax rules and regulations that vary from country to country. For example, if you have your new residence in Cyprus, you can look forward to a low pension tax and a double taxation agreement with Germany. However, you should seek professional advice before taking a big step like this.
What factors determine the taxation of pensions?
This question cannot be answered universally, as each country has different laws. Generally, the following factors are important:
- How long you live abroad each year and
- Whether a double taxation agreement exists between your new country of residence and Germany.
Generally, if you spend less than six months abroad, your tax situation typically does not change, and you continue to pay your taxes in Germany. However, if you live permanently abroad, you are subject to limited tax liability in Germany and can receive your pension from the statutory pension insurance in another country. Therefore, inform yourself thoroughly about the tax implications before moving abroad.
BS Holding assists you with a move to the Mediterranean island of Cyprus – Enjoy the holiday paradise as a retiree
Do you dream of a stress-free retirement under the Cypriot sun? BS Holding makes this dream a reality! We understand that moving abroad raises many questions regarding retirement pensions – especially concerning taxes.
With our expertise and comprehensive service package, we ensure that your transition into retirement is as smooth as possible.
Contact us and let us take the first step towards your dream retirement together. With BS Holding, your next trip to Cyprus will be more than just a holiday. Receive pension contributions from German insurance companies with us when you move abroad.
Frequently Asked Questions
Is the German pension paid in full abroad without tax payment?
No, pension insurance contributions are subject to tax regulations even abroad. Since 2005, recipients of a German pension must pay taxes, even if they reside abroad. However, double taxation agreements exist to prevent pensioners from being taxed in both Germany and abroad.
Do pensioners living abroad receive less?
No, generally, the pension from all contribution periods and non-contributory periods is paid in full, as if the pensioners were residing in Germany. This means there is no reduction in the pension due to residence abroad.
Why does the German pension insurance reduce payments when emigrating?
The German pension insurance does not necessarily reduce payments when emigrating. The pension continues to be paid in full. However, certain taxes, additional benefits, or allowances may be discontinued, depending on the country one moves to and the regulations applicable there. This affects the pension insurance record.
Can I take my Riester pension abroad?
Yes, retirees residing in other EU countries who are not fully tax-resident in Germany can transfer their Riester pension allowances from the insurance abroad tax-free. We would be pleased to provide you with further information if you are seeking advice and wish to relocate to Cyprus.
What should be considered when moving abroad to ensure my pension is paid seamlessly?
When moving abroad to Cyprus, it is important that your bank details are updated so that the pension can be paid without interruption. Please inform your pension insurance provider in good time. Always include your pension insurance number when contacting them.
How does working abroad affect my German pension?
Working abroad can affect the amount of your pension in Germany. Pension entitlements may arise with the insurance provider in the respective country. Consequently, the pension insurance benefits in Germany for the employee might be lower.
