German retirees and emigrants face varied pension, tax and citizenship rules abroad

More German citizens are choosing to live abroad, with pension payments to foreign residents rising by about 20 % since 2000. In 2026 roughly 1.24 million German pensions will be paid to EU countries, the largest shares to Italy (≈347 000), Spain (≈190 000) and Austria (≈130 000). Pensions sent to EU, EEA or Switzerland are paid in full and the German health‑insurance contribution generally continues, but recipients must verify procedures with their insurer. For the 21 bilateral social‑security partners outside the EU – including the USA, Australia, Japan and Turkey – similar full‑pension treatment applies, now supported by a mandatory electronic certification system from 1 January 2026. In countries without an agreement, retirees face cuts, loss of statutory health coverage and must obtain private insurance, costing €35‑150 per month. Tax treatment follows double‑taxation agreements; a recent German court ruling warned that a retiree in Portugal could still be taxed by Germany, prompting advice to consult a cross‑border tax specialist.

A separate study (MIPEX 2020) ranked the ten countries with the easiest naturalisation for immigrants. New Zealand tops the list, requiring five years of residence, basic English and a clean record, with a fee of NZ$560. Argentina, Brazil, Canada, the United States, Portugal, Sweden, Luxembourg, Ireland, Australia, Albania, Finland, France and Belgium also score highly. These findings guide German emigrants who consider acquiring new citizenship for political rights and travel freedom.