According to information from Deutsche Rentenversicherung, around 1.8 million people in more than 150 countries around the world receive a pension from Germany every year. Pensioners receive their full pension if they receive it within EU countries,  but if pensioners are located outside the EU, they must expect certain deductions. 

Within the European Union, pensioners have security if they want to live abroad for a few months. First is international health insurance.

On the other hand, pensions remain the same, that is, no additional tax is paid.

However, the situation is different if you register your place of residence outside the EU and outside Norway, Iceland, Liechtenstein and Switzerland (European Free Trade Association).

Here you have to weigh whether, as a pensioner, you really want to reduce your hard-earned pension to live in your dream country?

But if you want to receive a pension outside the EU, you must know two important things: whether Germany has concluded a social security agreement with the country in question and how long the stay abroad lasts.

If the stay abroad is not longer than six months, pensioners can also receive the full pension outside the EU, which can increase if pensions in Germany itself rise.

This also applies to countries such as Australia, Chile or Japan – three of the 20 countries that are not EU members and with which Germany has a corresponding agreement.

German pension outside the EU

Outside the European Union, pensioners with permanent residence outside Germany have a “limited tax liability”.

Because of this, the pension may be lower. Another reason why less money could end up in the account at the end of the month: the fluctuating exchange rate.

As reported by German media, some pensioners therefore opt for a model in which they spend half the year in their homeland and the other half abroad.

By the way, anyone who has residence in Germany for more than 183 days is again considered a taxpayer in Germany. The basic allowance then ensures a higher pension, that is, more money remains for living.

Disability pension

In the case of a disability pension, different regulations sometimes apply abroad than in Germany. Thus, a full disability pension can quickly turn into a partial one, due to different criteria for proving disability.

Before a potential change of residence at retirement age, it is in any case important to seek advice. Deutsche Rentenversicherung offers possible options on its website.

Who keeps the pension after death?

When it comes to inheriting a pension, pensioners should be aware that there are many changes in the law on pension inheritance in other countries.

In the event of death, the provisions of the EU country that was the last place of residence are decisive.

With German citizenship, however, it is possible to request in a will the provisions of German inheritance law.

Source: fenix-magazin.de