Germany is not the first country that comes to mind when people dream of retirement, and that can be an advantage. You get an orderly health system, a high standard of public services and a clear tax framework. You also get paperwork, and a tax system that does not give pensioners a special regime. To retire in Germany well, three questions matter most: how you are insured for health, how your pension is taxed and which country pays what.
Can you retire in Germany as an EU citizen?
Yes. As an EU or EEA citizen, you may live in Germany without a permit. Without employment, your right to stay depends on having enough resources and adequate health insurance. If your pension comes from another EU country, the S1 form gives you the right to full health cover in Germany (Your Europe). The one obligatory step is the address registration within two weeks of moving in: see the Anmeldung guide. British citizens have a different path, which we explain in moving to Germany from the UK.
How do you get health cover with an S1?
If your pension comes from another EU state, ask the health insurer of the country that pays it, before you leave, for the S1 form. In Germany, register it with a Krankenkasse of your choice, which gives you a card and full coverage of care, paid for by the country that pays your pension (Your Europe).
If you also receive a German pension, even a small one, the country of residence becomes responsible for your cover: you fall under German insurance, even if other pensions exist. You enter the statutory pensioners' insurance (KVdR) if you were insured in the statutory system, or as a dependant, for at least 9/10 of the second half of your working life. Otherwise voluntary insurance can be discussed with the fund. Inside the KVdR, foreign statutory pensions are subject to contributions: 7.3% plus half of the fund's additional rate, paid directly to the fund, whereas on a German pension the Deutsche Rentenversicherung deducts it. See health insurance in Germany for expats.
The mix of an S1, a small German pension and pensions from two other countries is common, and it changes who insures you and who pays. Moovy, our AI assistant, can lay out the questions to put to your insurers, in plain English. It does not apply for the S1 or your pension for you.
How are pensions taxed in Germany?
As a resident you are in principle taxable on worldwide income, including foreign pensions, unless the treaty between Germany and the paying country gives the right to tax the pension to that country. Even then, the pension is used to set the rate on your other income (Progressionsvorbehalt).
For a statutory pension, the taxable share depends on the year the pension starts: 83.5% for 2025, 84% for 2026, 84.5% for 2027, and so on up to 100% for 2058 (§ 22 EStG). The non-taxable remainder is fixed in euros the year after the start and stays the same; later increases are fully taxable. A foreign pension comparable to the German statutory pension follows the same rule. A private lifetime annuity is taxed on a share that depends on your age at the start, such as 22% at age 60 or 61, 20% at 63 and 18% at 65.
Declare foreign pensions in the Anlage R-AUS of your return; if the treaty leaves the tax to the other country, you only fill in the Anlage AUS, for the rate calculation. Do not subtract foreign tax yourself from the amount: it is reported separately in the Anlage AUS and, in principle, credited against German tax, or deducted from income if you ask (§ 34c EStG, subject to the treaty). For deadlines and the 2026 scale, see taxes in Germany for new residents.
What do the tax treaties say about pensions?
Each treaty splits the right to tax differently for public-service pensions, social-security pensions and private pensions. Examples: under the Germany-UK treaty, the UK State Pension and the German statutory pension remain taxable only in the country that pays them (article 17), while a private pension is generally taxed in the country of residence (the same article, with exceptions such as a fifteen-year rule for pensions whose contributions were tax-relieved in the paying country) and a civil-service pension is taxed in principle by the paying state (article 18). Check your own treaty on the Federal Ministry of Finance website.
When can you retire, and how do you apply?
The standard German retirement age is 67 for people born from 1964. For people born in 1960 it is 66 years and 4 months, 66 and 6 months for 1961, 66 and 8 months for 1962 and 66 and 10 months for 1963 (§ 35 and § 235 SGB VI). The minimum insurance period varies from 5 to 45 years depending on the pension type, and periods completed in other EU states count towards it.
There is no single European pension. Each country pays for its own periods at its own legal age. If you worked in several countries, file one application in your country of residence, that is in Germany with the Deutsche Rentenversicherung, and declare all your periods. If you have no insurance periods in Germany at all, you can also apply directly in the last country where you were insured. Apply within three calendar months after the month in which you meet the conditions, otherwise the pension starts only from your application month.
Which mistakes should you avoid?
- Assuming Germany cannot tax your foreign pension. Only the treaty can reserve the tax to the other country.
- Subtracting foreign tax from the figure you declare. It goes in the Anlage AUS instead.
- Forgetting to report a foreign pension to your fund when you are in the KVdR. It is subject to contributions, and you must report it without delay, with the pension notice.
- Leaving without an S1. Check whether the country that pays your pension will cover care in Germany.
- Expecting a special retiree tax regime. Germany has none.
What documents should you prepare to retire in Germany?
- The S1 form (or PD S1) from the country that pays your pension.
- Your ID, your registration certificate and your tax ID (how to get it).
- Pension notices from each country, showing the gross amount and start date, for your fund and the tax office.
- A career record for each country where you worked, for your pension claim.
- Proof of foreign tax already paid on your pensions.
If you also hold a pension from the UK, GOV.UK says that a UK State Pension recipient living in Germany may be entitled to an S1, requested from the NHS Overseas Healthcare Services and registered with a German fund. According to the DVKA, someone who only receives a British pension and was living in Germany before 2021 stays covered by the UK through the S1, including long-term care, taken in charge by a German fund; with a German pension in addition, German law applies. If you settled after 2021, ask your German fund to confirm what your S1 covers, long-term care included.
Retire in Germany: how do you budget for the real costs?
Your pension is not the only number that matters. Think about the health contribution if you are in the KVdR, income tax on a share of your pension, the broadcasting contribution, rent or property tax, and the service charges. Our article on the cost of living in Germany shows what the official statistics say about a typical household. Property buyers should read buying property in Germany first, since the transfer tax and a ten-year rule on resale gains can weigh on a retirement budget.
Does Germany offer anything special for pensioners?
The Income Tax Act (EStG) contains no special regime for foreign retirees. You are taxed on the normal scale, with the first €12,348 of taxable income free in 2026, and only the taxable share of your pension counts. Whether you end up paying income tax depends on your own figures.
Before you decide, have your situation confirmed by your pension fund and by a tax adviser (Steuerberater) or an association for wage and pension earners (Lohnsteuerhilfeverein), especially if your pension is large or comes from several countries.
What happens to your pension if you move again later?
If you leave Germany, you deregister your address, your fund and the tax office. The German statutory pension is paid abroad in many cases, and your tax position changes with your new residence and the treaty. The S1 and the tax treaty both depend on where you live and which country pays your pension, so check both again before you move.