<h2>Retiring Abroad -- What You Need to Know</h2>
<p>More and more German retirees are spending their retirement abroad. The reasons are clear: milder climate, lower living costs, and often higher quality of life than in Germany. Around 240,000 German pensions are transferred abroad -- and the trend is rising. This article explains what costs you can expect and what to consider when planning.</p>
<h2>German Pension Abroad: How It Works</h2>
<p>The good news: your German pension is generally paid worldwide. The Deutsche Rentenversicherung (German Pension Insurance) transfers the pension to an account of your choice -- including abroad. However, there are some specifics:</p>
<ul><li><strong>EU/EEA and Switzerland:</strong> No restrictions. The full pension is paid out, including all supplements.</li><li><strong>Countries with social security agreements:</strong> (e.g., USA, Canada, Turkey, Thailand) Full pension is paid, but certain supplements may be dropped.</li><li><strong>Other countries:</strong> Generally full pension, but some particularities possible with East German pension periods and foreign pensions (repatriate pensions).</li></ul>
<p>Important: Notify the Deutsche Rentenversicherung early about your move. You must submit a life certificate annually.</p>
<h2>Health Insurance for Retirees Abroad</h2>
<p>Healthcare is the most important and often most expensive factor for retirees abroad:</p>
<ul><li><strong>EU/EEA countries:</strong> With the European Health Insurance Card (EHIC), you have access to the host country's state healthcare system. German statutory health insurance covers costs according to the host country's rules. In countries like Portugal, Spain, or Greece, this works well -- though quality can be limited in rural areas.</li><li><strong>Outside the EU:</strong> In most countries, statutory health insurance coverage ends. You need private international health insurance. Cost: EUR 200 to 600 per month, depending on age and destination country. In countries like Thailand or Mexico, private health insurance offers good coverage at moderate prices.</li></ul>
<p>Tip: Before moving, check whether your German health insurance still applies in the destination country. A gap in insurance coverage can be very expensive in an emergency.</p>
<h2>Taxes on Your Pension Abroad</h2>
<p>Those who relocate their residence abroad must pay taxes on their pension -- the question is just where. Germany has double taxation agreements (DTAs) with many countries that regulate which country has taxation rights:</p>
<ul><li><strong>Portugal, Spain, Greece, Thailand:</strong> The pension is taxed only in the country of residence. Depending on the country, this can be significantly cheaper than in Germany.</li><li><strong>USA, Canada:</strong> Taxation in the country of residence with credit for German taxes.</li><li><strong>No DTA or special regulations:</strong> In some countries, double taxation can occur. Get tax advice before moving.</li></ul>
<p>Note: Since 2005, German pensions have been increasingly subject to tax. The taxable portion increases each year. If you become subject to limited tax liability in Germany after your move, the basic tax allowance is dropped -- which can lead to a higher tax burden.</p>
<h2>Popular Countries for Retirees and Their Costs</h2>
<ul><li><strong>Portugal (Algarve):</strong> EUR 1,200 -- 1,800/month. Mild climate, good healthcare, EU freedom of movement. Large German retiree community.</li><li><strong>Spain (Costa del Sol):</strong> EUR 1,300 -- 2,000/month. Similar to Portugal, even more sunshine, larger expat community.</li><li><strong>Greece (Crete):</strong> EUR 1,000 -- 1,500/month. Very affordable, excellent food, but medical care on islands may be limited.</li><li><strong>Thailand (Chiang Mai):</strong> EUR 800 -- 1,300/month. Excellent and affordable healthcare, tropical climate, friendly culture. Retirement visa available.</li><li><strong>Hungary (Lake Balaton):</strong> EUR 900 -- 1,400/month. EU country, close to Germany, thermal bath culture, low living costs.</li></ul>
<h2>Checklist for Retiring Abroad</h2>
<ul><li>Check health insurance and take out international health insurance if needed</li><li>Notify Deutsche Rentenversicherung about the move</li><li>Clarify tax implications with a tax advisor</li><li>Check double taxation agreement of the destination country</li><li>Long-term care insurance: clarify entitlement abroad</li><li>Bank account: maintain a German account (for pension receipt)</li><li>Will and inheritance law: different regulations may apply abroad</li><li>Trial period: live in the destination country for 3 to 6 months as a trial first</li></ul>
<p>Calculate your monthly costs in the destination country with our <a href="/en/cost-of-living-calculator">Cost of Living Calculator</a> and compare different options.</p>