Germany's reputation for its vibrant cities, beautiful countryside, high standard of living, and robust healthcare system makes it an enticing destination for retirees. But the process of retiring in a foreign land can be quite daunting, particularly when it involves different languages, cultures, and laws. This article will guide you on everything you need to know about retiring in Germany, including taxes, costs, visas, healthcare, housing, restrictions, tips, and tricks.

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Disclaimer: This article is intended to provide a general overview and understanding of the topics discussed. The information provided should not be used as a substitute for professional advice. It is strongly recommended that you consult with a professional advisor, such as an immigration lawyer, tax consultant, or financial advisor, for advice specific to your circumstances.

While every effort has been made to ensure the accuracy and reliability of the information at the time of writing, we do not assume any liability for the accuracy, completeness, or usefulness of any information disclosed. Regulations, tax laws, and immigration rules are subject to change and can vary depending on individual circumstances. Please seek professional advice before making any decisions based on the information provided in this article.

A German village, which would be perfect to retire in.

Retire in Germany: What to Consider

Retiring in Germany as a non-EU foreigner requires careful planning and consideration. Here are key items that you need to consider and prepare for:

Residence Visa for Retirees: As a non-EU citizen, you'll need to apply for a Residence Visa. This requires several documents including passport, proof of financial stability (such as pension statements or proof of savings), and proof of health insurance, among others.
Proof of Financial Stability: You need to prove that you have a stable and sufficient income to cover living expenses without relying on public funds. This could be a regular pension, annuities, or other sources of income.
Health Insurance: Before you can apply for a visa, you'll need to have valid health insurance. In most cases, non-EU retirees are required to have private health insurance.
Housing: You'll need to consider where you'll live. Whether you choose to rent or buy a property, you'll need to provide proof of a valid address in Germany (Anmeldung.)
German Language Skills: While not a formal requirement, some knowledge of German will be beneficial and could be crucial in some parts of the country. We recommend learning with Lingoda, here is a discount code to save you $25 or €25 at your sign-up.
Integration: You might need to show willingness to integrate into German society, which could be demonstrated through past visits, cultural ties, or other factors.
Police Clearance Certificate: Depending on your home country and the German immigration office's requirements, you may need to provide a police clearance certificate.
Recognition of Foreign Pensions: Check whether Germany recognises your foreign pension. You may need to consult with an international retirement or tax advisor on this matter.
Taxes: You need to understand the tax implications of retiring in Germany, including the taxation of your foreign pension
Renewal of Visa: You need to keep in mind that the residence permit for retirees is initially issued for a year and must be renewed regularly. Ensure you are aware of the renewal process and requirements. A Niederlassungserlaubnis (permanent visa) should be the goal.

We’ve expanded upon all these points below, continue reading on to learn more about what you need to do to retire in Germany as a foreigner.

Remember that each individual's circumstances can be different, and the rules can change. It's advisable to get legal advice or consult with the German embassy or consulate in your home country to understand the exact requirements and process.

We highly recommend looking at the various types of insurances available in Germany. Such as: Liability insurance, dental insurance (top-up plan), Life Insurance, legal, insurance and bike insurance.

Visa Requirements

Germany offers a variety of visa options for non-EU citizens wishing to retire in the country. Here are the most common ones:

Temporary Residence Permit (Aufenthaltserlaubnis): An Aufenthaltserlaubnis, or residence permit, is a critical document for non-EU nationals planning to retire in Germany, as it allows them to legally reside in the country. To obtain this permit, retirees must demonstrate their financial stability, typically through proof of regular income such as a pension or other financial assets. They must also hold valid health insurance coverage, provide proof of accommodation in Germany, and pay an associated visa fee. While the Aufenthaltserlaubnis is generally granted for one to three years initially, after five years of legal residence in Germany, retirees may be eligible to apply for a Niederlassungserlaubnis, or permanent settlement permit, offering a long-term residence solution without the need for periodic renewal.
Permanent Settlement Permit (Niederlassungserlaubnis): After five years of continuous residency in Germany on a temporary residence permit, non-EU citizens may apply for a Permanent Settlement Permit, which grants them the right to stay in Germany indefinitely. To be eligible, you need to have sufficient command of the German language (B1 level), have paid into the German pension fund for at least 60 months, and be able to support yourself financially without recourse to public funds.
EU Blue Card: Although the EU Blue Card is primarily for highly qualified professionals, if you've held an EU Blue Card for a certain period, you may be eligible to apply for a Permanent Settlement Permit. After 33 months of working in Germany, or after 21 months if you can prove sufficient German language skills (B1 level), you can apply for a Permanent Settlement Permit.
Family Reunion Visa: If you have close family members who are EU citizens living in Germany, you may be eligible for a Family Reunion Visa.

It's important to note that German immigration law can be complex, and the best option for you will depend on your individual circumstances. Therefore, you should seek advice from the German embassy or consulate in your home country or a legal professional specializing in German immigration law.

Proof of Financial Stability

To retire in Germany, non-EU citizens need to demonstrate 'proof of financial stability', meaning they must be able to support themselves financially without resorting to public funds. This requirement is designed to ensure that retirees can cover their living expenses, including accommodation, food, health insurance, and any other necessary costs.

Germany doesn't set a specific numerical threshold for financial stability, but as a rule of thumb, you should have regular income that's above the at-risk-of-poverty threshold in Germany. As of 2021, this was around €1,200 per month for a single person. However, the exact amount can vary and might be higher depending on your lifestyle, health insurance costs, and where in Germany you plan to live, as costs of living vary significantly across the country.

Proof of financial stability can be provided in various forms:

Pension Statements: Regular income from a pension can serve as proof of financial stability. You'll need to provide documents confirming your pension income.
Investments and Assets: Proof of investments and other assets such as property can also be used to demonstrate financial stability.
Bank Statements: Evidence of sufficient savings to support yourself, usually shown through bank statements over a certain period, can also serve as proof.
Other Sources of Income: You may also use other forms of regular income such as annuities, rental income, etc.

Healthcare

When it comes to healthcare, Germany is renowned for its comprehensive and high-quality system. It is compulsory for all residents in Germany, including non-German retirees, to have health insurance, providing broad coverage and ensuring that everyone has access to healthcare services.

There are two types of health insurance in Germany: statutory public health insurance, known as Gesetzliche Krankenversicherung (GKV), and private health insurance, known as Private Krankenversicherung (PKV).

Statutory Public Health Insurance (GKV)

Around 85% of the population in Germany is insured under the GKV. This system is funded through contributions from employees and employers, and covers a wide range of healthcare services, including visits to doctors, hospital care, prescription medications, preventive services, and rehabilitation. The coverage is the same for all insured persons, regardless of their income level.

As a retiree from a non-EU country, you may be eligible to join the public health insurance system, but it depends on various factors, such as your past insurance record, and you may be required to pay the full contributions yourself, which are based on your income.

Go here to get a quote from Feather, and see the best options and costs for your public healthcare plan.

It is important to point out here, that typically non-EU residents will not be approved for public healthcare and will most likely need the more expensive private health insurance plans.

Private Health Insurance (PKV)

Private health insurance is primarily used by self-employed individuals, higher earners, and civil servants. PKV often provides more comprehensive coverage than GKV, including additional benefits and quicker access to specialists. Premiums for private insurance are based on risk factors such as age, gender, and pre-existing conditions, rather than income.

As a retiree, if you're not eligible for public health insurance, or if you want more comprehensive coverage, you may opt for private health insurance. However, it's worth noting that switching from private to public insurance can be challenging, especially after retirement age, so this decision should be considered carefully.

Go here to get a quote from Feather, and see the best options and costs for your private healthcare plan.

Health Insurance for Visa Application

If you're applying for a visa to retire in Germany, you need to provide proof of health insurance coverage. This can be either a comprehensive travel health insurance policy for the initial period of your stay, expat insurance, or, ideally, a confirmation of coverage from a German health insurer.

Regardless of the type of insurance you choose, it's crucial to ensure it will adequately cover your healthcare needs while living in Germany. It's advisable to seek professional advice to understand better what's covered and compare different health insurance options.

Healthcare Options

In most cases, retirees from non-EU countries who wish to retire in Germany are required to have private health insurance. This is because it may be challenging for them to get statutory public health insurance (GKV) if they weren't previously insured in the German public system or in a similar system in another EU country.

To be eligible for the German statutory public health insurance (Gesetzliche Krankenversicherung or GKV) in retirement, one generally must have been insured for at least half of their working life. This rule implies that if your working life is considered to be from age 20 to 67 (47 years), you would need to have paid into the public health insurance system for at least 23.5 years to qualify for GKV in retirement.

A cost-effective but very limited option would be to have ‘expat health insurance,’ but take caution on what is actually covered. This would be an option to get a ‘foot in the door.’

Private health insurance (PKV) policies offer comprehensive coverage, which usually includes benefits such as outpatient and inpatient treatment, dental care, medications, eyeglasses, and even alternative treatment methods.

The private health insurance should meet specific criteria to be accepted for the visa application. Notably, it should provide sufficient coverage for medical treatment in Germany, not have high deductibles, and it should not exclude specific illnesses. In addition, the insurer should have a representative in Germany.

Before choosing a private health insurance plan, you should thoroughly research and compare different providers and plans, taking into consideration your current health status, any pre-existing conditions, and the range of healthcare services you anticipate needing.

You can start by looking at Feather, which will compare healthcare plans for you, in English. They also have an ‘Expat Health Insurance’ which is enough for visa qualification.

Keep in mind that it is usually hard to switch from private to public health insurance in Germany, especially after retirement age. So if you choose to take out private health insurance, it is likely to be a long-term commitment.

Housing

When planning your retirement in Germany, one of the key considerations is housing. Germany offers a variety of options, each with its unique benefits and drawbacks. Here are some housing options for non-EU citizens retiring in Germany:

Renting: Renting is a popular choice among retirees in Germany, given its flexibility and the wide range of rental properties available. There are various types of rental properties including apartments, houses, and retirement communities. Before renting, it's important to understand the rental agreement (Mietvertrag), including the terms and conditions, and your rights and responsibilities as a tenant.
Buying Property: Buying property in Germany is another option. There are no restrictions on foreigners owning property in Germany, which makes it an appealing choice for many. However, this requires a significant upfront investment and comes with additional costs like property tax, notary fees, and real estate transfer tax. However, if you take out a loan, you will need to have a permanent settlement visa (Niederlassungserlaubnis), as explained above.
Senior Residences and Retirement Communities: Germany offers a variety of senior living communities that cater to the needs of older adults. These communities often provide a range of services such as meals, housekeeping, and social activities. Some also provide health care services. This can be an appealing option for those seeking a sense of community and support.
Co-housing Communities: These are intentional communities of private households that share some facilities such as a communal kitchen, garden, or laundry. These communities are based on mutual support and cooperation and can be a good option for those looking for a social and communal living environment.

Each of these housing options comes with its own costs. Rent and property prices can vary significantly across Germany, with major cities like Munich, Frankfurt, and Hamburg being more expensive than smaller towns and rural areas.

Remember, your choice of housing should take into account not only your financial situation but also your lifestyle, health, and social needs. It's always a good idea to visit different types of housing and locations before making a decision.

German Language Skills

Learning the German language is a crucial aspect of integrating into life in Germany, particularly for those planning to retire in the country. While English is commonly spoken in many areas, particularly in larger cities, having a good grasp of German will significantly enhance your day-to-day experiences, interactions, and understanding of the culture.

If you would like to receive your permanent settlement visa (Niederlassungserlaubnis), you will need to have a B1 level of German and a certificate to go along with it.

To develop your German language skills, we recommend to use a platform like Lingoda. Lingoda is an online language school that offers German language courses taught by native-speaking teachers. Whether you're a complete beginner or looking to advance your proficiency, Lingoda provides comprehensive courses catering to all levels based on the Common European Framework of Reference for Languages (CEFR).

Here are some benefits of using Lingoda for learning German:

Flexibility: Lingoda offers classes 24/7, making it convenient to fit language learning into your schedule. You can learn at your own pace, from the comfort of your home.
Interactive Lessons: Lessons are conducted live in small groups or one-on-one, facilitating interaction and direct feedback from qualified teachers. This interactive learning approach is known to be effective in language acquisition.
Structured Curriculum: The curriculum is structured according to CEFR levels, from A1 (beginner) to C2 (proficiency). This allows for systematic learning and progress tracking.
Practical Focus: Lingoda’s lessons focus on practical language use, which is beneficial for real-life situations like shopping, visiting the doctor, or conversing with neighbors.
Certification: After completing each level, you receive a CEFR certificate, which can be useful for visa applications or employment purposes.
Trial Lesson: If you're unsure about committing to a course, Lingoda offers a trial lesson so you can get a sense of their teaching style and platform.

Learning German will undoubtedly be advantageous in your retirement journey in Germany. With platforms like Lingoda, this learning journey can be as comfortable, flexible, and rewarding as possible.

Lingoda Discount Code: This discount code will save you $25 or €25 when signing up. Begin your fun German language journey today!

Integration into Germany

Integration into the local culture and community is an important part of retiring in a new country, and Germany is no exception. A smooth integration process can greatly enhance your experience and allow you to fully appreciate the German lifestyle.

Here are a few key areas to focus on for successful integration in Germany:

Learning the Language: As discussed earlier, understanding and speaking German is fundamental to your integration process. Even if you can get by with English in some places, knowing German will open up many more opportunities for you to connect with locals and understand the culture. Enrolling in a German language course, like those offered by Lingoda, can be an excellent starting point.
Understanding German Culture: Germans have their unique traditions, customs, and social norms. Understanding these can help you fit in and feel comfortable in social situations. You might consider enrolling in a culture class or attending cultural events and festivals to gain a deeper appreciation of German culture.
Check out our YouTube channel to learn some of the German culture differneces.
Getting Involved in the Community: Participating in local activities and events can be a great way to integrate into your new community. This might involve volunteering, joining a local club, or participating in neighborhood activities.
Building a Social Network: Building relationships with locals is important for feeling a sense of belonging. Be open to meeting new people and making friends, whether that's through community events, clubs, or simply by interacting with your neighbors.
Understanding the Legal and Political System: Having a basic understanding of Germany's legal and political system can help you navigate everyday life. This could involve learning about your rights and responsibilities, the local administration, and public services available to you.
Taking an Integration Course: The German government offers integration courses for immigrants, which combine language learning with lessons on German culture, history, and the legal system. These courses are designed to help newcomers understand and adapt to life in Germany.

Remember, integration is a gradual process. It takes time to adjust to a new culture and way of life. Be patient with yourself and keep an open mind. With the right approach, you'll find yourself feeling at home in Germany before you know it.

Learn more about Germany’s political system here, and how it differs from the United States:

Police Clearance Certificate:

A Police Clearance Certificate (PCC), also known as a Certificate of Good Conduct, is a document that verifies an individual's criminal record, or lack thereof, in their home country. It's used by German authorities to assess whether an applicant poses a security risk.

While not always explicitly required for all visa categories, it is generally a good idea to acquire one when preparing to move to Germany. For some types of long-term residence permits, including certain retirement visas, a PCC might be a requirement.

Here's a general step-by-step process of how to obtain a Police Clearance Certificate:

Contact the Appropriate Authority: The specific procedure for obtaining a PCC varies by country. Generally, you should contact your local police department or the government body in charge of maintaining criminal records. This might be the Department of Justice, the Ministry of the Interior, or a similar agency, depending on your country.
Complete the Application: Most agencies will have an application form that you need to complete. This will typically ask for personal information such as your full name, date and place of birth, and sometimes your fingerprints. You may also need to provide a reason for the request, in which case you should state that it's for immigration purposes.
Provide Identification: You will usually need to provide identification, such as a passport or national ID card. There may be additional documentation requirements depending on your country.
Pay the Fee: There's usually a fee associated with obtaining a PCC. The amount will depend on your country's regulations.
Wait for Processing: The processing time for a PCC varies widely. It could take anywhere from a few days to several weeks, so be sure to apply well in advance of your planned move.
Receive the Certificate: Once processed, you'll receive the certificate, which you can then present to the German embassy or consulate when applying for your visa.

Remember, it's important to verify the specific procedure and requirements for obtaining a PCC in your home country as the process can vary. If you're unsure, contact your local police department or the German embassy or consulate in your country for guidance.

RELATED: We highly recommend looking at the various types of insurances available in Germany. Such as: Liability insurance, dental insurance (top-up plan), Life Insurance, legal insurance and bike insurance.

Recognition of Foreign Pensions

For non-EU citizens planning to retire in Germany, one of the primary considerations is ensuring that their foreign pensions are recognized. This is crucial as your pension will likely be your primary source of income during your retirement, and it's necessary to demonstrate financial stability for a long-term residency visa.

In general, Germany recognizes pensions from foreign countries, but it's important to understand the procedures involved. Here's a step-by-step guide:

Contact Your Pension Provider: The first step is to contact your pension provider in your home country. You'll need to inform them about your plan to move to Germany and ask about the process of transferring your pension. They may need some information or documentation from you, such as your new address in Germany.
Taxation Agreement: Check whether there's a double taxation agreement between your home country and Germany. This agreement prevents you from being taxed twice on your pension income – once in your home country and once in Germany. If such an agreement exists, you should obtain documentation confirming this.
Obtain Pension Statement: Obtain a statement of your pension from your pension provider. This statement should detail the regular payments you'll receive. This is a crucial document, as you'll need to present this to German authorities to prove your financial stability.
Translation and Legalization: Ensure all your documentation is translated into German by a certified translator, and where necessary, apostilled or legalized for use in Germany. This is not always required and can vary by state and even by the official in Germany.
Submit Documentation to German Authorities: Submit your pension statement and any other required documents to the appropriate German authority when you apply for your visa or residency permit. They will review these documents to verify your pension income and determine your eligibility for residency.

The German authorities will mainly look for the regularity and stability of your pension income to ensure that you can support yourself financially while living in Germany. They will also consider the double taxation agreement to determine the tax status of your pension income.

It's advisable to seek professional advice from an immigration consultant or lawyer to ensure that you follow all the correct procedures and that your pension will be recognized in Germany.

Taxes

As a retiree in Germany, your worldwide income may be subject to German income tax Germany has a rather complex tax system when it comes to foreign pensions, especially for retirees who are considered tax residents, i.e., they spend more than 183 days per year in Germany or have their primary residence there. In principle, as a tax resident, you are subject to German tax on your worldwide income. This includes foreign pensions.

However, the taxation of foreign pensions depends on a variety of factors such as the type of pension, the country from which it originates, and the existence of a double taxation agreement (DTA) between Germany and that country.

Germany has DTAs with many countries to avoid double taxation. These agreements determine which country has the right to tax your pension income. Depending on the agreement, your foreign pension may be taxed in your home country, in Germany, or in both (with a method to eliminate double taxation).

It is also important to point out that not all of a pension will be taxed. Given the complexities and the fact that tax regulations can change, it's advisable to consult with a tax advisor familiar with international taxation to understand your obligations fully.

But, just so it’s clear, the taxable portion of your pension is subject to Germany's progressive income tax rates. These rates start at 0% for income up to €9,744 (as of 2021), and can go up to 45% for very high-income levels (over €270,501 for single filers, and over €541,002 for married couples filing jointly).

In addition to income tax, the "Solidarity Surcharge" of 5.5% of your income tax is also levied, though low and medium-income earners are largely exempted. Individuals with religious affiliations might also have to pay a church tax.

It's important to note that tax rules can be complex and may change over time, and the existence of a double taxation agreement (DTA) with your home country can impact how your pension is taxed. Therefore, it's strongly recommended to consult with a tax advisor for accurate and personalized advice. We are not tax experts and nothing explained above should be taken as fact, even though we have done our best to research and explain these points.

Do you have everything in order and planning to move to Germany? Check out everything you need to know about moving to Germany in our guidebook here!

FAQ

Q: Can a non-German citizen retire in Germany?

A: Yes, non-German citizens can retire in Germany. They need to apply for a Residence Visa for Retirees and meet certain requirements.

Q: Is healthcare free in Germany?

A: No, healthcare is not free. It is compulsory for all residents to have health insurance.

Q: Can I work in Germany after retirement?

A: Yes, but it depends on the type of visa you hold and its conditions.

In conclusion, retiring in Germany can be a fantastic choice, given the country's high standard of living and excellent healthcare. It's essential to be well-prepared and understand all requirements to ensure a smooth transition into this new phase of life in Germany.

How to Retire in Germany (2024): A Comprehensive Checklist for Non-EU Citizens