For retired German civil servants (Ruhestandsbeamte) who move abroad, the first question is: does the civil service pension (Beamtenpension) remain payable in full if they live outside Germany? The short answer: German civil service pension law does not provide for any general reduction of the retirement pension (Ruhegehalt) simply because the place of residence is moved abroad. The real issues lie elsewhere: in the duties to notify the pension authority, in payment to a foreign bank account, in taxation between Germany and the new state of residence, in the state healthcare allowance for civil servants (Beihilfe) and private health insurance, and in the provision for surviving dependants. This article assesses these points from a German perspective, based on the law as at October 2026.
First, a clarification of scope: this article deals with the retirement pension from a German civil service relationship under the Federal Civil Service Pensions Act (Beamtenversorgungsgesetz, BeamtVG) and the comparable laws of the federal states (Länder). Anyone who also receives a statutory pension will find the pension insurance issues in the article Pension insurance when emigrating.
Is the Pension Reduced Because of Residence Abroad?
The retirement pension is calculated on the basis of the pensionable salary and the pensionable period of service; the place of residence is, in principle, irrelevant. Neither the BeamtVG nor, to our knowledge, the pension laws of the federal states provide for a flat-rate deduction for residence abroad.
What can change, however, is the net amount, for several reasons:
- Tax: Moving away usually ends unlimited tax liability in Germany. However, the pension often remains taxable in Germany, only under different rules (limited tax liability, beschränkte Steuerpflicht).
- Transfer costs: Where payment is made to an account abroad, the pension recipient generally bears the costs and the risk of the transfer under Section 49 (7) BeamtVG.
- Health insurance and Beihilfe: Contributions and reimbursements may change if treatment takes place abroad.
- Rules on suspension: Anyone who earns additional income abroad before reaching the standard retirement age (Regelaltersgrenze) may fall under the suspension rules (Ruhensvorschriften) of Section 53 BeamtVG.
Payment of the Retirement Pension Abroad
Account in Germany or Abroad
Section 49 (7) BeamtVG obliges pension recipients, at the request of the competent authority, to name or open an account to which the pension payments can be transferred. The paying office bears the transfer costs up to the credit to the account. If the account is abroad, the provision stipulates that the recipient bears the costs and the risk of the transfer as well as the fees for reports under foreign trade law (Außenwirtschaftsrecht); the recipient likewise bears account opening, account maintenance and booking fees. Payment by any means other than transfer to an account may only be granted if the recipient cannot reasonably be expected to open or use an account for good cause.
Many therefore keep an account in Germany, which can also be used for health insurance contributions or German taxes.
Authorised Recipient in Germany
Under Section 49 (6) BeamtVG, the highest service authority may make payment of the pension conditional on the appointment of an authorised recipient in Germany (Empfangsbevollmächtigter im Inland) if the person entitled to the pension has their residence or habitual abode outside the territory in which the Act applies. This is a discretionary provision; whether the authority makes use of it must be clarified in the individual case. Anyone who already has a trusted person in Germany can combine this role with a comprehensive power of attorney. Guidance on drafting is given in the article Advance power of attorney when living abroad.
Duties to Notify the Pension Authority
Notify a Change of Residence without Delay
Section 62 (2) no. 1 BeamtVG obliges the person entitled to the pension to notify the pension-determining authority (Regelungsbehörde) of any change of residence without undue delay. Deregistering at the residents’ registration office (Einwohnermeldeamt) is not enough, because the registration authority does not automatically inform the pension office.
The consequences of failing to do so can be significant. Under Section 62 (4) BeamtVG, payment of the pension may be temporarily suspended if the person entitled culpably fails to notify the change of residence. For culpable breaches of the duties to notify income and remarriage (Section 62 (2) nos. 2 and 3 BeamtVG), Section 62 (3) BeamtVG even provides that the pension may be withdrawn in whole or in part, temporarily or permanently.
Further Duties to Notify
In addition to the place of residence, the following must in particular be notified under Section 62 (2) BeamtVG:
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| Duty to notify | Legal basis | Relevance when living abroad |
|---|---|---|
| Change of residence | Section 62 (2) no. 1 BeamtVG | required for every move, including moves within other countries |
| Receipt and change of certain income | Section 62 (2) no. 2 BeamtVG | income from work abroad may also be relevant |
| Marriage, for widows and widowers | Section 62 (2) no. 3 BeamtVG | affects the survivors’ pension |
| Completion of the general qualifying period in the statutory pension insurance | Section 62 (2) no. 5 BeamtVG | important where the pension coincides with a statutory pension |
In addition, the person entitled must provide evidence on request or consent to its transmission by third parties. Some pension offices require residents abroad to provide evidence at regular intervals that the conditions for entitlement continue to be met.
Federal Government and Federal States
The provisions cited apply to pension recipients of the Federal Government (Bund). The federal states regulate the pensions of their civil servants in their own laws, with rules that are often comparable but differ in detail. State civil servants should ask their pension office about the relevant provision before moving.
Additional Income Abroad
Anyone who works abroad before reaching the standard retirement age must observe the suspension rules. Under Section 53 (1) BeamtVG, pension payments are suspended to the extent that earned income or income replacing earnings, together with the pension, exceeds a maximum limit. After reaching the standard retirement age, only income from employment in the public service (Verwendungseinkommen) is taken into account under Section 53 (8) BeamtVG. How foreign income is recorded and evidenced in the individual case should be clarified with the pension office before taking up any work.
Taxation of the Civil Service Pension When Living Abroad
From Unlimited to Limited Tax Liability
As long as a retired civil servant has a residence or habitual abode in Germany, they are subject to unlimited income tax liability. Anyone who gives up both becomes subject to limited tax liability under Section 1 (4) of the Income Tax Act (Einkommensteuergesetz, EStG) to the extent that they earn domestic income within the meaning of Section 49 EStG. When the residence has actually been given up is a question of the individual case; a home in Germany that is retained and available for use at any time can mean that unlimited tax liability continues. The criteria are explained in the article Habitual abode in tax law.
Under Section 49 (1) no. 4 (b) EStG, civil service pensions are domestic income if they are paid from German public funds in respect of a current or former employment relationship. Under German law, the pension therefore remains taxable in Germany even after moving away.
Extended unlimited tax liability under Section 1 (2) EStG, by contrast, requires an existing employment relationship and typically concerns active staff posted abroad, not retired civil servants who move abroad privately.
What Limited Tax Liability Means in Practice
Limited tax liability brings a number of special features:
- Wage tax deduction: The pension office continues to withhold wage tax (Lohnsteuer). The wage tax deduction criteria for employees with limited tax liability are determined by the tax office of the paying office’s place of business (Betriebsstättenfinanzamt) (Section 39 (2) sentence 2 EStG).
- Final withholding: Under Section 50 (2) sentence 1 EStG, income tax is generally deemed to have been settled by the wage tax deduction. An assessment takes place, among other cases, if it is applied for (Section 50 (2) sentence 2 no. 4 (b) EStG).
- Basic tax-free allowance: Section 50 (1) sentence 2 EStG provides that, for persons with limited tax liability, taxable income is increased by the basic tax-free allowance (Grundfreibetrag). For income under Section 49 (1) no. 4 EStG, which includes the civil service pension, this increase applies only to a limited extent. As a result, pension recipients bear a lower burden than other persons with limited tax liability; the calculation in the individual case is, however, demanding.
- Pension allowance: Unlike the basic tax-free allowance, the pension allowance (Versorgungsfreibetrag) and the supplement to the pension allowance (Zuschlag zum Versorgungsfreibetrag) under Section 19 (2) EStG remain available under limited tax liability. They already take effect when the income is determined and reduce the taxable pension itself, whereas the basic tax-free allowance only applies at the level of the tax scale and is specifically neutralised for persons with limited tax liability by Section 50 (1) sentence 2 EStG. The list of provisions that do not apply under limited tax liability in Section 50 (1) sentence 4 EStG does not mention Section 19 (2) EStG. The amount of the allowance depends on the year in which the pension began (Section 19 (2) sentence 3 EStG).
- Special expenses: Under Section 50 (1) sentence 5 EStG, employees with income under Section 49 (1) no. 4 EStG may deduct, among other things, pension and insurance expenses (Vorsorgeaufwendungen) under Section 10 (1) no. 2 (a) and no. 3 EStG. These generally include contributions to basic health and long-term care insurance.
- Joint assessment: Under Section 26 (1) EStG, the income splitting procedure generally requires both spouses to be subject to unlimited tax liability; it is therefore usually not available to persons with limited tax liability. Exceptions arise under Section 1 (3) and Section 1a EStG.
Application for Unlimited Tax Liability under Section 1 (3) EStG
For retired civil servants in particular, notional unlimited tax liability under Section 1 (3) EStG is of practical importance. On application, persons without a residence in Germany are treated as subject to unlimited tax liability if at least 90 percent of their income in the calendar year is subject to German income tax or if the income not subject to German income tax does not exceed the basic tax-free allowance. This amount is reduced to the extent necessary and appropriate in view of the circumstances in the state of residence. The amount of the foreign income must be evidenced by a certificate from the foreign tax authority.
Since, because of the paying-state principle (see below), the pension is often taxed exclusively in Germany, many pensioners without significant other income reach the 90 percent threshold. For spouses resident in an EU or EEA state, Section 1a (1) no. 2 EStG then opens up joint assessment, subject to further conditions. Whether the application is beneficial overall depends on the other income and the state of residence and should be calculated in advance.
Double Taxation Agreements: The Paying-State Principle
Principle: Taxation in the State of the Paying Fund
Whether Germany may actually tax the pension or whether the right to tax lies with the state of residence is determined by the relevant double taxation agreement (Doppelbesteuerungsabkommen, DBA). For pensions from the public service, the German agreements largely follow the OECD Model Tax Convention. Under its Article 19 (2) (a), pensions paid by a contracting state or one of its political subdivisions or local authorities in respect of services rendered are taxable only in that state. This is known as the paying-state principle (Kassenstaatsprinzip).
For the German retired civil servant this means: the pension is usually still taxed in Germany, and the new state of residence exempts it from its own tax. Many states, however, take exempt income into account when determining the tax rate on the remaining income (exemption with progression, Progressionsvorbehalt). How the state of residence treats the German pension depends on its own law; a local tax adviser should be consulted on this. The basics of how the agreements work are explained in the article Double taxation agreements: basics for emigrants.
Exception: National of the State of Residence
Article 19 (2) (b) of the OECD Model Tax Convention contains an important exception: the pension is taxable only in the state of residence if the person is resident there and is also a national of that state. This becomes relevant, for example, for retired civil servants who hold another nationality in addition to German nationality or who later become naturalised. How dual nationals are treated in detail is regulated independently in each agreement. Anyone considering naturalisation in the destination country should therefore have the tax consequences reviewed beforehand, as well as the question of whether German nationality will be retained.
Deviations and Transitional Rules in Individual Agreements
Not every agreement follows the Model Convention, and agreements are amended or renegotiated. The Cologne Tax Court (Finanzgericht Köln) had to decide on the pension of a German civil servant resident in Hungary, where, after the new agreement with Hungary of 2011 entered into force, the tax office had revoked the exemption from wage tax deduction. The court found that the agreement contained a provision protecting legitimate expectations for persons who were already resident in Hungary when the instruments of ratification were exchanged (Article 17 DBA-Ungarn 2011; FG Köln, judgment of 24.05.2016, 1 K 1796/13, confirmed by BFH, judgment of 24.01.2018, I R 49/16). The case shows that the precise wording and the transitional provisions of the relevant agreement are decisive.
Exemption from Wage Tax Deduction and Proof of Residence
Where the agreement allocates the right to tax to the state of residence, the exemption is not taken into account automatically. Under Section 39 (4) no. 5 EStG, on application by the employee or the employer, it can be recorded as a wage tax deduction criterion that the wages are to be exempt from wage tax under an agreement. Proof of residence in the other state is regularly required for this; details are given in the article Certificate of tax residence.
Where the position under the agreement is unclear or a larger arrangement is planned, such as a move combined with naturalisation, it is advisable to obtain a binding ruling (verbindliche Auskunft) from the tax office under Section 89 (2) of the German Fiscal Code (Abgabenordnung, AO) before implementation and, where possible, a corresponding ruling from the tax administration in the state of residence.
Beihilfe and Health Insurance Abroad
Beihilfe Generally Continues
Entitlement to Beihilfe depends on the status as a pension recipient, not on residence in Germany. For federal civil servants, Section 11 of the Federal Beihilfe Regulation (Bundesbeihilfeverordnung, BBhV) governs expenses incurred outside Germany:
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| Place of treatment | Rule under Section 11 BBhV (Federal Government) |
|---|---|
| EU member state | treated like expenses incurred in Germany |
| State outside the EU | generally only up to the amount of eligible expenses in Germany |
| Exceptions outside the EU | including emergencies, treatment near the border, prior approval, small amounts up to a maximum limit |
Anyone living outside the EU must therefore expect treatment costs above the German level to be reimbursed only in part. For state civil servants, the Beihilfe rules of the respective federal state apply, which may differ in detail. The information provided by the competent Beihilfe office is decisive; it should be requested before the move, including on the form in which foreign invoices are to be submitted.
Private Health Insurance: Contract and Residence
Most civil servants are privately insured for the share not covered by Beihilfe. When it comes to continuing the insurance after moving abroad, a distinction must be made:
- Move within the EU or EEA: Under Section 207 (3) of the Insurance Contract Act (Versicherungsvertragsgesetz, VVG), the insurance relationship continues if the insured person moves their habitual abode to another member state of the EU or the EEA. However, the insurer remains obliged to provide at most the benefits it would have to provide during a stay in Germany.
- Move to a third country: There is no comparable statutory continuation rule. Whether and to what extent cover remains in place depends on the insurance conditions and the tariff.
Long-term care insurance is also important. Whether and which care benefits are provided for residents abroad depends on the contract and the state of residence. Before a contract is terminated or changed, it should be clarified whether a later return to the previous tariff is possible. A deferred insurance policy (Anwartschaftsversicherung) can be an instrument for this. On the starting position, see also the article Civil servants are not subject to compulsory insurance in either PKV or GKV.
Whether there is a separate obligation to take out health or social insurance in the state of residence depends on local law, which a local adviser should review.
Survivors’ Pensions When Living Abroad
Under Section 16 BeamtVG, the survivors’ pension comprises payments for the month of death, death grant, widow’s pension, widow’s settlement, orphan’s pension, maintenance contributions and widower’s pension. Residence abroad does not exclude these entitlements. For the survivors, however, there are practical hurdles:
- Proving death abroad: The pension office requires a death certificate, where applicable with translation and certification or apostille. Payment may be delayed until it is submitted.
- Overpayments: If the death is reported late, the pension office reclaims amounts overpaid. With a foreign account, the survivors’ access to the account may also be more difficult.
- Duties to notify of the widow or widower: Under Section 62 (2) no. 3 BeamtVG, remarriage among other things must be notified.
- Tax: Widow’s and orphan’s pensions are also pension payments from public funds; the tax issues described above arise separately for each survivor.
Couples should therefore record before the move who will inform the pension office in the event of death, which documents are ready and who has access to the German account. On the question of which succession law applies to the estate, see the article German succession law when living abroad.
Returning to Germany
On return and with a new residence in Germany, unlimited tax liability arises again; in the year of arrival, limited and unlimited tax liability coincide. The consequences of leaving the previous state of residence there should be clarified with a local adviser.
In terms of pension law, the return must in turn be notified as a change of residence under Section 62 (2) no. 1 BeamtVG. Private health and long-term care insurance is more critical: anyone who gave up the German contract when moving away may find it difficult to be readmitted on comparable terms.
Checklist before the Move
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| Step | Contact |
|---|---|
| Notify change of residence, clarify account | Pension office |
| Clarify Beihilfe for treatment abroad | Beihilfe office |
| Health and long-term care insurance, deferred insurance | Health insurer |
| Position under the agreement, application under Section 1 (3) EStG | Tax adviser, tax office |
| Adjust powers of attorney and will | Lawyer |
| Law of the destination state | Local adviser |
Conclusion
The civil service pension is not reduced across the board when the pensioner lives abroad. The accompanying issues are decisive: the change of residence must be notified to the pension office without delay, otherwise payment may be suspended. For tax purposes, under the paying-state principle the pension usually remains taxable in Germany, with exceptions for nationals of the state of residence and under deviating agreements. Beihilfe continues, but outside the EU it is regularly limited to the German level, and private health insurance must suit the new residence.
Frequently Asked Questions
Will my civil service pension be reduced if I move abroad?
No, the BeamtVG does not provide for a general reduction because of residence abroad. However, the net amount paid out may change due to taxes, transfer costs, health insurance or the suspension rules where there is additional income.
Where is my pension taxed if I live abroad?
Under most German double taxation agreements, the paying-state principle applies to pensions from public funds: taxation takes place in Germany. An exception may apply if you are resident in the state of residence and are also a national of that state. The wording of the relevant agreement is decisive.
Do I have to tell the pension office that I am moving abroad?
Yes. Section 62 (2) no. 1 BeamtVG requires every change of residence to be notified without delay. In the event of a culpable breach, payment may be temporarily suspended (Section 62 (4) BeamtVG). State civil servants will find comparable rules in the pension law of their federal state.
Will I continue to receive Beihilfe abroad?
In principle, yes. For federal civil servants, expenses within the EU are treated like expenses in Germany; outside the EU, reimbursement is generally limited to the amount of the costs in Germany, with some exceptions (Section 11 BBhV). For state civil servants, the rules of the respective federal state apply; the information provided by the Beihilfe office is decisive.
Can I be treated as subject to unlimited tax liability despite living abroad?
On application under Section 1 (3) EStG, if at least 90 percent of your income is subject to German income tax or your other income does not exceed the (possibly reduced) basic tax-free allowance; a certificate from the foreign tax authority is required. If you are resident in the EU or EEA, joint assessment may be available under Section 1a EStG.
Attorney Dr. Johannes Fiala and the Munich-based firm, which focuses on international succession law, tax law and asset protection, advise retired civil servants and their families on moving their residence abroad, from the duties to notify the pension office and the taxation of the pension under double taxation agreements to providing for surviving dependants. Dr. Fiala has published extensively on questions of emigration and asset protection. Please get in touch with the firm without obligation to discuss your individual situation in an initial consultation.
