Pensions Abroad: This is how it works without any cuts

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Berlin

• About 1.74 million pensions are paid overseas from Germany
• One reason: more people are retiring in another country
• There are a few things to consider if you want to avoid cuts

Here and the Peter Prielmeyer couple fulfilled a dream many years ago: since 2005, the two have been living on the Tunisian Mediterranean island of Djerba for half a year. The couple do their expenses Rest So that’s where the others are Holidays To do.

Average Annual temperature 23 degrees, little rain, lots of sun, amazing beaches. Peter Prielmeyer, 75, said: “We have loved Tunisia for a long time.

Leisure Abroad: Good weather, low costs

Next Climate Are less Cost of living There was a reason to settle there. “You pay the equivalent of 160 euros a month. You can live well with a pension of 1200 euros,” says a retiree from the Eiffel area.

His monthly Pension payments From Germany, Preelmeyer accesses each day via a specially set up Tunisian bank account.

More and more Germans are settling in retirement

The pension model of the Prielmeyer couple has been popular in Germany for many years. According to information from the Germans Pension insurance The number of pension benefits transferred abroad has increased by about 50 percent in the last 20 years.

By 2020, about 1.74 million pensions had gone Abroad. This equates to almost seven percent of all pension payments. In 1999, only 1.16 million pensions were transferred to other states.

More interesting: Opinion on pensions – why a collapse in Germany is imminent

About 14 percent Overseas pension German citizens have a place of residence or a familiar place of residence in another country. Austria has the highest proportion of German pensioners. More than 27,000 pensions are transferred there, followed by Switzerland with 27,000 and the United States with 23,000.

Outside the EU, pensioners face disabilities

The vast majority of overseas pensions – almost 86 percent – go to citizens of other countries who paid for pension insurance while working in Germany and are now on old pensions. Homeland Spend.

Nearly three-quarters go to foreign pensions EU-land. The rest goes to the nations of the world. It is precisely that there may be unpleasant surprises. More precisely: for lower payments.

Also read: Pension taxation – these should be the new rules

Unlike retirees living permanently in the EU country or in Iceland, Norway, Liechtenstein and Switzerland, their full salary can be obtained from Germany. elders home Is complicated in non-European countries. This is especially true if you have been staying there for more than six months. Because then the German classifies Tax Office German retirees have “limited tax liability”.

What initially seems like an advantage is actually a drawback that affects everyone who lives in Germany for less than 183 days a year and immigrates outside of Europe throughout the year. For this group, retirement benefits may be less because they are taxed Basic tax credit No longer applicable, it also applies to pensions.

Application for unlimited tax liability is possible

For Singles If this amount is 9,744 euros in the current year, it will rise to 9,984 euros in 2022. Conversely, if this exemption is no longer available, it means more Guide Are to be paid. As a result, the amount of pensions converted will be lower. This restriction also applies to pensions offered in some countries.

Under certain conditions, retirees living outside the EU can apply for “unlimited tax liability” in Germany. This way, they will continue to benefit from the deductions – for example if they can prove that they have 90 percent money Income There is only low income derived from Germany or from abroad.

If you live within the EU, there are no flaws

Along with many states outside the EU, so is Germany Social Security Agreement Closed. They prevent any exemptions from German pensions, for example by taxing the income of the out-of-state. Retirees should also note that there may be fluctuations in the exchange rate in some countries. More in this case: Retirement at 68 – This is the debate

To avoid tax breaks, the Prielmayer couple spend less than half of the year alone Second house. In the remaining months, the couple meets their children, grandchildren and great-grandchildren in Germany. Peter Prielmeyer said, “We still have a place to live there.

If it happens to his wife and him at some point Health Should go bad ”and we need care, we do not want to stay in Tunisia. Then we want to go back to Germany.