What Happens to my Old-Age Pension When I Move to Spain?

I bet you are one of those people who are fed up with the weather in Germany and would like to relax in a more pleasant climate such as Mallorca. Why not? So what will happen to your German pension?

Nothing much will happen to your German pension. It will follow you – in full. The reason is that most European countries have signed conventions on social security to avoid disadvantages from relocation. Even though your pension will not be reduced by your relocation, you can expect to cover the transfer and exchange costs. That is the general rule. In any case, keep in touch with your social security agency!

The main exception relates to the so-called "Riester-Rente". This subsidized pension will be taxed when it is paid out. If you leave Germany in your post-work part of life you will no longer be subject to German taxation. That would be unfair to the rest of pensioners living in Germany. That is why the German government considers this to be nonconstructive and demands reimbursement for the subsidies granted to you. However, the European Commission is examining whether this regulation conforms to European law. So stay tuned…