Why always stay in Germany?  

The cost of living is rising, pensions are tight – many retirees are wondering whether they can spend their retirement abroad for less money and more comfortably. Instead of rainy days in the Black Forest, would you rather enjoy breakfast with a view of the sea? It sounds like a luxury, but it's often cheaper than in Germany – if you choose the right country.

Every year, the German Pension Insurance (DRV) transfers pensions to over 150 countries . While many recipients are foreign pensioners who have acquired benefits in Germany, a growing number of German pensioners are also moving abroad permanently. Over 250,000 German pensioners already live outside Germany , and the number is rising. Twenty years ago, there were almost 100,000 fewer.

The most popular countries include Switzerland, Austria, France, and the USA . Sunny countries such as Spain, Italy, Greece, Croatia, and Turkey are also particularly popular. However, those considering emigrating should consider important factors such as the cost of living, taxes, and health insurance.

Cheaper properties abroad

Germany remains an expensive place when it comes to real estate prices. Even after the end of the low-interest-rate phase, housing costs remain high.
While a new apartment in Germany costs an average of 4,600 euros per square meter , the situation is much better in other countries:

Anyone who owns a property in Germany can sell/rent it profitably and often afford a larger or cheaper apartment or even a house abroad.

Cost of living: Where retirees can save

With an average German pension of €1,152 (as of 2022), life in Germany isn't exactly cheap. Rising inflation, in particular, is putting pressure on budgets. But in many countries, this pension goes much further:

(Source: Federal Statistical Office, December 2024)

If you plan cleverly, you will not only have more financial flexibility for everyday life abroad, but also for small moments of luxury.

Avoiding double taxation – Where is it worth it?

Since 2005, pensions have been taxed deferred, i.e. only when they are paid out. Therefore, anyone emigrating should choose a country with which

Germany has a double taxation agreement . These agreements stipulate that pensioners only have to pay tax on their income once – either in Germany or in their country of residence.

Such an agreement applies to all countries of the European Economic Area (EEA) and some other states. Anyone wishing to emigrate outside the EEA should consult a tax advisor or the German Tax Administration (DRV) beforehand to determine whether and where taxes are due.

Particularly important: Anyone receiving a Riester pension and living outside the EEA must repay the state subsidies . This can be expensive—so be sure to seek advice beforehand!

Social security agreements – which countries are advantageous?

Health and long-term care insurance can be a significant financial burden. It's especially difficult for older people to obtain private insurance in a new country, as premiums increase significantly with age. It's better to emigrate to a country with a social security agreement . These include: ✅ All EU countries ✅ Switzerland, Turkey, Tunisia

Important to note: While health insurance is often covered without any problems in these countries, this only applies to long-term care insurance in the EEA and Switzerland . Anyone who emigrates to another country loses this insurance coverage.

Overwintering instead of emigrating – A clever alternative

Not everyone wants to leave Germany permanently. An alternative to complete emigration is wintering abroad . Those who spend less than six months abroad are not officially considered emigrants. This has several advantages:

✔ Health insurance remains unchanged
✔ Tax residence remains in Germany
✔ Pension is paid without additional deductions
✔ Lower living costs for several months

Many retirees therefore choose to spend the cold months in Spain, Portugal or Thailand while enjoying the summer in Germany.

MFRadio.de & Mission Freedom Ltd. – Your experts for worry-free emigration

🌍 Are you planning your retirement abroad? We can help! 🌍

Cyprus-based Mission Freedom Ltd., together with MFRadio.de , supports retirees interested in living abroad. Our network of licensed lawyers, tax advisors, and insurance experts offers all the important information for a secure and relaxed retirement abroad.

💡 Our free services: ✔ Tax advice for pensioners abroad
✔ Support with residence permits & visas
✔ Help with health insurance questions
✔ Contacts to German-speaking experts on site
✔ Free webinars & information materials

📩 Contact us now, without obligation! Send us a message with your preferred country, and we'll send you free information and contact details for our partners .

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