Living in Germany
A general guide to the residency, tax, pension, investment and cross-border financial considerations that may be relevant when moving to or living in Germany.
A European Lifestyle With Many Possibilities
Germany combines internationally connected cities, regional variety and ready access to the rest of Europe.
Berlin, Munich, Frankfurt, Hamburg and Cologne each offer a distinct pace of life, while smaller cities and rural areas can provide a different balance of work, family life and leisure.
Alongside the lifestyle considerations, an international move can introduce questions about residence, taxation, social insurance, pensions, investments, property and financial reporting.
This page provides general educational information for people researching life in Germany. The relevance of each topic can depend on nationality, residence, income sources, asset location and individual circumstances.
Understanding German Residence
German tax residence is not determined by a single day-count test in every situation.
A dwelling maintained and available for use in Germany can be relevant. A continuous stay of more than six months is generally treated as a habitual abode from the beginning of that stay, subject to limited exceptions.
Residence can affect how employment income, business income, pensions, investments, property income and other income connected with countries outside Germany are considered.
Where more than one country regards a person as resident, domestic rules and an applicable double taxation agreement can both be relevant.
Factors that can be relevant
- A home available for use in Germany
- The length and nature of time spent in Germany
- Employment or business activity
- Family and personal connections
- Income and assets in other countries
- Domestic registration and reporting requirements
- Any applicable double taxation agreement
Understanding Your Finances in Germany
An international move can affect several parts of a financial life at the same time.
Income & Tax
German residence can affect the treatment of employment, business, rental, pension and investment income from Germany and abroad.
Savings & Investments
Investments created in another country can receive different tax or reporting treatment after a move to Germany.
Pensions
UK pensions, US retirement accounts, German pension benefits and other arrangements can interact with residence and treaty provisions.
Property
Buying or renting in Germany, or retaining property elsewhere, can introduce tax, ownership, financing and reporting considerations.
Currency
Income or assets in pounds, dollars or another currency can create exchange-rate considerations alongside euro-based spending.
Inheritance & Estate Matters
Residence, domicile, asset location, family relationships and existing documents can all affect cross-border estate matters.
Life in Germany, Viewed in the Round
Career, family, housing, healthcare, travel and retirement can all influence the financial questions that arise during an international move.
Explore Financial Considerations
How Financial Arrangements Can Interact
Financial arrangements created in one country do not always retain the same tax or reporting treatment after a change of residence.
Income & Social Insurance
Employment status and residence can affect income tax withholding and participation in German social insurance systems.
Property & Housing
Property in Germany or another country can create questions involving income, gains, financing and ongoing administration.
Pensions & Retirement
The treatment of pension income can depend on the type of pension, residence and the wording of an applicable treaty.
Family & Estate Considerations
Wills, beneficiaries, gifts and inheritance can involve the laws and tax systems of more than one country.
Pensions & Retirement in Germany
Moving to Germany does not automatically mean that an existing pension or retirement account has to change.
Residence, pension type, treaty provisions, currency and the country from which payments arise can all influence the position.
UK Pensions
UK pension benefits can remain relevant after a move, while the tax treatment can vary according to pension type and treaty provisions.
US Retirement Accounts
US citizens and other US taxpayers can retain US filing obligations while living in Germany, and treaty provisions can be relevant to retirement accounts.
German Pensions
Employment history and participation in German pension or occupational arrangements can affect future retirement benefits.
Public-Service Pensions
Government-service pensions can be treated differently from private pensions under an applicable double taxation agreement.
Currency Exposure
Pension income paid in pounds or dollars can fluctuate in euro terms as exchange rates change.
Transfers & Withdrawals
Transfers, withdrawals and changes to pension benefits can have tax, regulatory and long-term financial consequences across jurisdictions.
Double Taxation Agreements
Germany has double taxation agreements with many countries, including the United Kingdom and the United States.
These agreements allocate taxing rights and can provide mechanisms for relief where income or gains have connections with more than one country.
The outcome can depend on the treaty, the type of income and the facts involved. The existence of an agreement does not mean that every item is exempt from tax or reporting.
Topics covered by treaties can include
- Residence where both countries are involved
- Employment and business income
- Private and public-service pensions
- Property and investment income
- Relief from double taxation
Germany Financial Research Topics
An international move can affect several areas at once. The topics opposite provide an educational starting point.
Their relevance depends on personal circumstances and does not indicate that any particular action is appropriate.
- Residence and registration
The German residence, immigration and registration framework relevant to the intended stay. - Potential tax residence
The point at which German residence may begin and how domestic and treaty rules can interact. - Income and social insurance
The treatment of employment, self-employment, business income and social insurance contributions. - Pensions and retirement accounts
How German, UK, US or other arrangements can interact with residence and treaty provisions. - Savings and investments
Whether existing products receive different tax or reporting treatment in Germany. - Property and banking
Housing, mortgages, accounts and any property retained outside Germany. - Currency exposure
The interaction between non-euro income or assets and euro-based expenditure. - Estate matters and records
Cross-border wills, beneficiaries, gifts, inheritance and records relating to income, assets and tax.
Continue Your Germany Tax Research
Access general headline information about German taxation. Current official sources can provide further detail on rules in force at the relevant time.
Germany Tax Headline Rates
The resource provides a high-level introduction to German tax rates, residence and related considerations. It is educational and does not determine the treatment that applies in an individual case.
Access Germany Tax Headline Rates
Complete the form below to access the latest available educational information about Germany headline tax rates.
The information is intended as a high-level reference only. Residence, income sources, pensions, investments, property and individual circumstances can affect the position.
Useful Sources for Further Research
Tax, residence, immigration and pension rules can change over time. Official information can help with research into the rules in force at the relevant time.
German Federal Central Tax Office
Official information concerning German taxation and cross-border tax administration.
Visit the Federal Central Tax OfficeUK Government
Official information for UK nationals researching residence, work, healthcare, tax and pensions in Germany.
View Living in GermanyUS Internal Revenue Service
Official US–Germany treaty documents for people researching cross-border US tax considerations.
View Germany Treaty DocumentsExplore Germany Tax Information
Continue with the Germany tax resource or revisit the general research topics that can arise when moving to or living in Germany.
Important information
This page is for general educational information only and should not be treated as personal financial, investment, pension, tax, legal, immigration or property advice. Rules and outcomes depend on nationality, residence, jurisdiction and individual circumstances and may change. Seek appropriately qualified professional guidance before making decisions.