Emigrating as a pensioner

Many people dream of living abroad for a longer period of time, escaping everyday life and discovering a new country. More and more pensioners are fulfilling this dream and emigrating in retirement. According to the German pension insurance organisation, in 2023 more than 250,000 pensioners received their pensions abroad – and the trend is rising. There are many reasons for this, but a higher quality of life, a more pleasant climate and a lower cost of living are frequently mentioned in particular.

In this guide, we will give you an overview of the most important aspects that you should consider if you plan to emigrate as a pensioner.

Enjoying life in retirement, away from professional obligations and stress. Finally having time for yourself and your wishes and dreams. For more and more people, this means leaving Germany behind and spending their retirement abroad. Be it under palm trees, on the beach, in the mountains or in the far north: the destination is entirely a matter of taste.  

But often it is not only the desire for new adventures that motivates pensioners to emigrate abroad, but also the desire for a better quality of life.

More and more people end up having less and less money in old age. Many people, especially women, even find themselves in old-age poverty later on. Making a modest pension stretch further – this works better in many other countries than in Germany, where rents in particular are very high. Countries such as Spain, Portugal or Italy entice expats with a low cost of living – for rent, food, medicine or nursing care.

The climate is also much milder in the south, especially in the Mediterranean, and this can have a positive effect on many illnesses. However, countries with very hot summers are generally not recommended, as high temperatures tend to put a strain on the circulation.

Another key reason for emigrating as a pensioner is being able to leave all obligations behind, gain new impressions, get to know new cultures – finally do what before there was never any time for. Where better to do that than in the place you have always dreamed of?

If you are a pensioner and are considering emigrating, you should first clarify the legal requirements. These depend very much on the country you want to emigrate to.

One of the first things you should clarify is whether you need a visa for the country in question. You do not need a visa of you are staying within the European Union and the European Economic Area, You will only have to register in the respective country, usually after three months at the latest. If you are considering emigrating outside the EU and EEA, you should find out if there is a visa for pensioners. Many countries offer this sort of visa, for example, Panama, Costa Rica, Thailand, the Philippines, Mauritius, etc. Check that you meet the requirements for this visa.

Find out exactly what you need to do with regard to registration in Germany and in the country to which you want to emigrate. It is also best to make an appointment with the German pension insurance organisation and clarify what impact your emigration will have on your entitlement to social benefits.

The registration obligation in Germany stipulates that you must always deregister at the residents’ registration office if you emigrate. Keep your deregistration certificate safe, as you may need it for the foreign authorities.  

Different regulations apply at your destination, depending on the country. As an EU citizen, you will usually have to re-register in countries within the EU and the EEA, after three months at the latest. Very different requirements apply in countries outside the EU and the EEA, which will also depend on your visa, so find out exactly what your obligations are.

The financial planning for emigrating as a pensioner is basically similar to any other emigration. You should calculate exactly how much money you will need for relocation and your visa. Even as a pensioner, you should make sure you have some reserves put aside for unforeseen events.

Whether and to what extent you are still entitled to your pension after emigration depends on the country you want to emigrate to. The following requirements apply:

• For a short period (up to three months): Full pension entitlement
• Within the EU or EEA: Full pension entitlement
• Outside the EU/EEA: Full pension entitlement only if there is a social security agreement between the country and Germany, otherwise no full pension entitlement

Note: Pensioners who live abroad and receive a pension from Germany always receive a “life certificate” mid-year. This must be completed and returned. This certificate confirms to the German pension insurance that the person living abroad is still alive and may continue to receive a pension.

Even abroad, your pension is still subject to tax if it comes from a statutory pension insurance scheme. Whether and how your pension is additionally taxed in the new country of residence depends on the respective double taxation agreement (DTA) between Germany and the destination country. This agreement is designed to prevent your pension from being taxed twice. If such an agreement exists between the destination country and Germany, your pension will be taxable only in Germany. It is best to seek advice from experts on all tax issues at an early stage.

Within the EU and the EEA, you can usually continue to be insured with the statutory health insurance fund if you receive your pension in Germany. Outside the EU and EEA, this depends on whether Germany has a social security agreement with the respective country. This applies, for example, to countries such as Turkey or the USA. If no such agreement exists, you are no longer entitled to social benefits from Germany and must take out private health insurance.

If you want to emigrate as a pensioner, you should also be well prepared for everyday life and the various social aspects in order to feel at home in the new country in the long term. In addition to financial and legal issues, language, social contacts, health care and appropriate living space in old age also play an important role.

Even though you might be able to get by with English and sometimes German in many countries, it is important that you learn the language of the respective country. This not only makes your everyday life easier but also helps you to build local contact. Even basic knowledge of the respective language can help you when shopping, visiting the doctor or talking to neighbours. Ideally, you will start acquiring your first basic language skills while still in Germany and expand your knowledge after you arrive with further language courses locally if necessary.

As a pensioner, you will not have the opportunity, like many other expats, to socialise at work. You should therefore actively seek out contact with other emigrants, e.g. via regular expat meet-ups, clubs or online forums. You can also get to know people through engaging in local volunteer work. Maybe there are clubs or hobbies through which you can meet new people. Find out what your new place of residence has to offer in this regard.

How does the health care system work? Are there English or German-speaking doctors? What medical examinations do you need and are the respective medical practices available locally? How far is it to the nearest hospital? Find out about medical care in your new place of residence as early on as possible.

Especially in old age, it can be important to find suitable housing. You should look at the appropriateness of not only the apartment or house itself but also of the environment in which you want to live. How good is the infrastructure? Are there supermarkets and medical care facilities in your area? Choose your new place of residence and your apartment or house carefully.

You have many options when it comes to emigrating as a pensioner, but some countries are more suitable and some less so. So which countries are best for spending your retirement in? For your selection, you should consider the following criteria:

• Taxation: Countries that have concluded a double taxation agreement with Germany are particularly suitable.
• Cost of living: The lower the cost of living, the further your pension will stretch, so you should definitely consider this aspect.
• Proximity to Germany: You do not want to live too far away from your family? Then you should also consider this criterion.

• Austria: Proximity to home, a common language and an excellent healthcare system make Austria a particularly popular destination for German pensioners.
  ✓ Double taxation agreement with Germany in place
• Switzerland: Switzerland attracts with political stability, beautiful nature and a high quality of life. The proximity to Germany and the excellent healthcare system are plus points – but the cost of living is quite high in comparison.
  ✓ Double taxation agreement with Germany in place
• Spain: Sun, sea and Mediterranean flair – Spain scores with its climate, especially on the Costa Blanca or in Andalusia.
  ✓ Double taxation agreement with Germany in place
  Since 2023, there have been new reporting obligations for foreign income – tax advice is recommended.
• USA: States such as Florida or California are particularly popular with pensioners because of the warm climate and excellent leisure opportunities. However, the cost of living and health insurance are expensive, which requires careful preparation.
  ✓ Double taxation agreement with Germany in place
  ✓ Additional tax return in the USA for additional income
• France: France offers a culture of enjoyment, a high quality of life and attractive regions such as Provence or Alsace. The proximity to Germany, good infrastructure and a functioning healthcare system make the country an interesting prospect for retirement.
  ✓ Double taxation agreement with Germany in place
• Netherlands: If you like to stay close to Germany and do not want to have to deal with a completely different culture, you will find a safe, well-organised environment in the Netherlands.
  ✓ Double taxation agreement with Germany in place
  ✓ Registration in the Dutch social system
• Poland: Attractive due to the low cost of living, good medical care and geographical proximity to Germany. Many German pensioners find a new home in western Poland in particular.
  ✓ Double taxation agreement with Germany in place
  ✓ German health insurance can be kept
• Canada: For the adventurous, Canada offers a high quality of life, impressive nature and a stable social system. However, the cost of living and distance to home are higher.
  ✓ Double taxation agreement with Germany in place
  ✓ Private health insurance necessary
• 9. Australia: Offers an excellent healthcare system and a high quality of life, but due to the distance and visa requirements, it is rather an option for expats who are well-prepared. 
  ✓ Double taxation agreement with Germany in place
  ✓ Local tax obligations, if applicable
  ✓ Retirement Visa required
• Italy: The “Dolce Vita” attracts many retirees – cheap real estate in the south, good food and a mild climate speak for themselves, even if bureaucratic hurdles may exist.
  ✓ Double taxation agreement with Germany in place
  ✓ Special tax regulations for foreign pensioners, especially in certain regions

Which country is perfect for you to emigrate to in retirement depends entirely on your personal needs and financial possibilities.