If you’re living in Germany and thinking about where to invest your money, you’re not short on choices. Germany has a strong economy, a stable financial system, and a wide range of investment products. But local options aren’t the only ones worth considering.

For many investors, offshore opportunities can offer flexibility, tax efficiency, and access to a broader range of investments.

Here’s a look at what’s available both in Germany and beyond.

Options in Germany

There are plenty of mainstream choices that are regulated, relatively safe, and easy to access if you’re a resident. Some of the most common include:

1. Savings and Fixed-Term Accounts
   German banks offer savings accounts and fixed-term deposits (Festgeld) that pay modest interest rates. These are low-risk but also offer low returns, especially when inflation is high.
2. Mutual Funds and ETFs
   These are popular with both new and experienced investors. ETFs in particular have gained traction in Germany thanks to their low fees and the rise of robo-advisors. You can open a depot account with most German banks or online platforms to get started.
3. Real Estate
   Germany’s property market has seen steady growth over the years. Investing in buy-to-let properties or real estate funds is common, especially in major cities like Berlin, Munich, and Hamburg.
4. Company Pensions and Private Retirement Plans (Riester & Rürup)
   If you’re thinking long-term, Germany offers several state-supported private pension schemes. These often come with tax incentives, but they can be complex and come with restrictions.
5. German Stocks and Bonds
   Direct investment in shares or government/corporate bonds is another route. The Frankfurt Stock Exchange is one of the largest in the world, and you can invest in German companies directly through brokerage accounts.

Why Some Investors Look Beyond Germany

While investing locally is safe and convenient, it can also be limiting. That’s where offshore investing comes in. It’s not about hiding money or avoiding taxes. It’s about building a more flexible and diverse financial strategy.

Here are a few reasons why German residents might explore offshore options:

1. Greater Investment Choice
   Offshore platforms often offer access to global funds, currencies, and alternative assets that aren’t available through German banks. This can be helpful if you want to diversify beyond the European market.
2. Tax Efficiency
   Depending on your residency and financial situation, some offshore structures may offer tax benefits. This doesn’t mean avoiding your tax obligations but rather making use of legal allowances and better structures to manage them.
3. Multi-Currency Portfolios
   If you earn or plan to spend money in different currencies, investing offshore allows you to build a portfolio in dollars, pounds, or other major currencies. This can reduce currency risk and add stability.
4. International Mobility
   If you’re an expat or planning to move abroad in the future, keeping your investments in one country may not make sense. Offshore options can follow you wherever you go.
5. Privacy and Flexibility
   Offshore accounts can provide more control over how your assets are held and managed. That doesn’t mean secrecy, just flexibility.

What to Watch Out For

Offshore investing isn’t for everyone. There are rules to follow and it’s important to stay compliant with German tax laws. You’ll need to declare your foreign investments and pay taxes where applicable.

This is why it’s a good idea to get advice from professionals who understand both the German system and the offshore world. The goal is to build a portfolio that’s legal, transparent, and tailored to your needs.

Final Thoughts

If you’re based in Germany and unsure whether local or offshore investing is right for you, reach out, and we can help you sort through the options. With years of experience working with international clients, Ben offers clear, personalised advice designed to match your goals, lifestyle, and long-term plans.

Whether you’re looking to build wealth, protect assets, or plan for retirement, Ben will help you take a global view of your finances while staying fully compliant with local regulations.

Get in touch today to arrange an obligation-free consultation.