Introduction: The Dream of Living Abroad

More and more German retirees dream of spending at least part of their year abroad. The reasons are diverse: more pleasant climate, lower cost of living, or simply the desire to exchange the gray German winter for sunshine and mild temperatures. But despite all the anticipation of the stay abroad, important legal and practical questions arise: How long can retirees stay abroad? What happens to their pension? What tax consequences need to be considered?

This comprehensive guide answers all important questions about temporary and permanent stays abroad for retirees. We examine the legal framework, the effects on your pension and health insurance, as well as the tax consequences – both for shorter stays and permanent emigration. We also present Cyprus as a particularly attractive destination for long-term stays and show how you can optimally experience the Mediterranean lifestyle with LongStay Cyprus.

Basic Residence Regulations for German Retirees Abroad

Before we go into specific aspects, it's important to understand the basic residence regulations that apply to German retirees abroad. These vary considerably depending on the destination country.

Stays in EU Countries and Switzerland

As EU citizens, German retirees enjoy extensive freedom of movement rights within the European Union:

• Short stays (up to 90 days): For stays of up to three months, you only need a valid identity card or passport.
• Longer stays (over 90 days): For longer-term stays, you usually need to register with local authorities and apply for a residence permit.
• Unlimited stay: As an EU citizen, you fundamentally have the right to settle permanently in any EU country, as long as you can demonstrate sufficient financial means and health insurance coverage.

Important to know: After five years of legal residence, you typically acquire a permanent right of residence in the respective EU country.

Stays in Non-EU Countries

Outside the EU, different regulations apply depending on the country:

• Tourist stays: In many popular countries, Germans can enter visa-free for a specific period (e.g., 90 days in Turkey, 30 days in Thailand).
• Longer stays: For longer stays, special visas or residence permits are required, with conditions varying from country to country.
• Special retiree visas: Some countries offer special visa programs for retirees, including Thailand, Panama, Malaysia, and the Philippines.

Special Feature: The 183-Day Rule

An important regulation that appears in many contexts is the so-called 183-day rule. It states that you are generally considered tax resident in Germany if you spend more than 183 days (i.e., more than half the year) in Germany. This rule has both tax and social security consequences, which we will explain in more detail in the following sections.

Effects on German Pension During Stay Abroad

One of the most important questions for retirees concerns the effects of a stay abroad on their pension payments. The good news: In most cases, you can receive your German pension abroad without restrictions.

Pension Receipt Within the EU, EEA, and Switzerland

Within the EU, the European Economic Area (EEA), and Switzerland, particularly advantageous regulations apply:

• The German pension is paid in full and without deductions.
• You are entitled to the same annual pension adjustments as in Germany.
• Payment transactions are uncomplicated through the SEPA system.
• No additional transfer fees are incurred within the SEPA area.

Pension Receipt in Countries with Social Security Agreements

Germany has concluded bilateral social security agreements with many countries, including:

• USA and Canada
• Australia
• Israel
• Japan
• Turkey
• Tunisia
• Morocco
• and many more

In these countries, your pension is also paid without restrictions. The exact provisions may vary depending on the agreement, but your pension entitlements are generally protected.

Pension Receipt in Countries Without Social Security Agreements

In countries with which Germany has not concluded a social security agreement, restrictions may apply:

• EU citizens: For German nationals, the pension is generally transferred to these countries without reduction.
• Non-EU citizens: For retirees without German or EU nationality, there may be reductions in the pension depending on the country of origin.

Practical Tips for Receiving Pension Abroad

• Timely notification: Inform the German Pension Insurance (Deutsche Rentenversicherung) in good time about your planned stay abroad.
• Keep account details current: Ensure that your bank details are up to date and suitable for international transfers.
• Life certificate: Depending on the country, an annual life certificate may be required to continue receiving your pension.
• Check tax aspects: Inform yourself about the tax consequences in Germany and in the host country (more on this in the following sections).

Health Insurance Abroad for Retirees

Another important aspect of longer stays abroad is health insurance. The regulations here differ considerably depending on the destination region and length of stay.

Health Insurance for Temporary Stays in the EU

For temporary stays within the EU, the EEA, and Switzerland:

• The European Health Insurance Card (EHIC) covers medically necessary treatments.
• You automatically receive this card from your German health insurance.
• Treatment is provided under the same conditions as for locals in the respective country.
• Additional private international health insurance is recommended to close gaps (e.g., repatriation).

Health Insurance for Permanent Residence in the EU

When relocating your residence to an EU country:

• You can get health insurance in the country of residence.
• The German statutory health insurance issues form S1 upon request.
• With this form, you can register in the new country of residence and receive benefits according to the rules there.
• The costs continue to be borne by the German health insurance.

Health Insurance Outside the EU

Different rules apply for stays outside the EU:

• The statutory health insurance generally provides no coverage outside the EU/EEA.
• With permanent emigration, compulsory insurance in the German statutory health insurance ends.
• Options for health insurance coverage:
  • Taking out private international health insurance
  • Joining the healthcare system of the destination country (if possible)
  • Voluntary continued insurance in the German statutory health insurance (under certain conditions)

Special Considerations for Privately Insured Individuals

Special regulations apply to retirees with private health insurance:

• Most private health insurances offer worldwide coverage.
• Nevertheless, check the exact scope of benefits abroad.
• Special tariffs or restrictions may apply in case of permanent emigration.
• Repatriation to Germany is often not automatically covered and should be insured additionally.

Tax Aspects of Extended Stays Abroad

The tax consequences of a stay abroad are complex and depend on various factors, particularly the question of whether you continue to be considered tax resident in Germany.

Tax Residency: When Do You Remain Taxable in Germany?

Tax residency is determined based on various criteria:

• Residence in Germany: As long as you maintain a home in Germany that you regularly use, you remain subject to unlimited tax liability.
• Habitual abode: If you spend more than six months of the year in Germany (183-day rule).
• Close personal and economic ties: Even without residence, close ties to Germany can establish unlimited tax liability.

Unlimited vs. Limited Tax Liability

Depending on the situation, the following tax liabilities may exist:

• Unlimited tax liability: Your entire worldwide income is taxed in Germany.
• Limited tax liability: Only income from German sources is taxed in Germany.
• Extended limited tax liability: Under certain conditions, even with residence abroad, for 10 years after leaving, additional types of income may remain taxable in Germany.

Taxation of Pension Abroad

The taxation of German pensions abroad is a complex topic:

• Double taxation agreements (DTAs): Germany has concluded DTAs with many countries regulating which country has the right of taxation.
• Typical regulation in DTAs: Often, the country of residence has the right to tax pensions.
• Progression clause: Even if the pension is taxed abroad, it may be considered in Germany for the tax rate on other income.

Tax Liability in Popular Emigration Countries

The tax situation varies depending on the destination country:

• Spain and Portugal: In both countries, German pensions are taxed, with Portugal offering temporary tax advantages through the NHR program (Non-Habitual Resident).
• Austria and Switzerland: Here, German pensions are generally taxed in the country of residence.
• Thailand and Philippines: These countries often do not tax foreign pensions or only minimally.
• Cyprus: Offers attractive tax regulations for retirees, with low tax rates on foreign pensions.

Practical Tips for Tax Optimization

• Professional advice: Be sure to consult a tax advisor specializing in international tax law.
• Documentation: Keep accurate records of your days in Germany and abroad.
• Deregistration from Germany: In case of permanent departure, deregistration from the residents' registration office is required.
• Tax return: Even after leaving, continue to file a German tax return if you are subject to limited tax liability.

Registration Requirements and Bureaucratic Aspects

In addition to tax and insurance aspects, there are other bureaucratic requirements to consider.

Registration Requirements for Temporary Stays Abroad

For temporary stays abroad:

• No deregistration from Germany required
• Observe registration requirements in the host country (depending on country and length of stay)
• Inform German Pension Insurance and health insurance

Registration Requirements for Permanent Emigration

For permanent departure from Germany:

• Deregistration from the responsible residents' registration office
• Notification to the tax office (possibly a questionnaire for tax registration when moving abroad)
• Information to the German Pension Insurance
• Arrangement of the health insurance situation
• Possibly application for a residence permit in the destination country

Other Important Aspects

• Bank account: Check if your bank will continue to maintain your account during a permanent stay abroad.
• Powers of attorney: If necessary, grant powers of attorney for matters in Germany.
• Will and living will: Check their international validity.
• Driver's license: Inform yourself about its validity and possible exchange requirements.

Special Conditions in Selected Countries

The specific regulations for retirees vary considerably from country to country. Here's an overview of some popular destinations:

Spain

• Stay: As an EU citizen, registration required after 90 days
• Residencia status: Proof of sufficient financial means and health insurance
• Taxes: Tax resident in Spain after 183 days of stay
• Healthcare: Good public system, access with form S1

Portugal

• Stay: As an EU citizen, registration after 90 days
• NHR program: Attractive tax model for new settlers (valid for 10 years)
• Cost of living: Cheaper than in Germany, especially outside Lisbon
• Climate: Mild climate in the Algarve and on Madeira

Thailand

• Retirement visa: Special visas available for retirees (Retirement Visa)
• Financial requirements: Proof of regular income or bank deposits
• Extension: Annual extension with regular reporting obligations
• Health insurance: Private insurance necessary, with stricter requirements since 2022

Turkey

• Stay: Visa for 90 days, then residence permit required
• Health insurance: Proof of health insurance for residence permit
• Property acquisition: Relatively uncomplicated for foreigners
• Taxes: Tax agreement with Germany in place

Cyprus: An Ideal Destination for German Retirees

Among the many attractive destinations for German retirees, Cyprus stands out particularly. The third-largest Mediterranean island offers a unique combination of pleasant climate, affordable cost of living, and legal advantages.

Residence Regulations for Retirees in Cyprus

Different regulations apply depending on the part of the island:

• South Cyprus (Republic of Cyprus):
  • As an EU member, EU freedom of movement rights apply
  • Registration required after 90 days
  • Proof of sufficient financial means and health insurance
  • After 5 years of continuous residence, permanent right of residence is possible
• North Cyprus (Turkish Republic of Northern Cyprus):
  • Visa-free stay for 90 days
  • Special retiree residence permit with minimal financial requirements
  • Significantly lower cost of living than in the south
  • Annually renewable residence permit

Tax Advantages in Cyprus

Cyprus offers attractive tax conditions for retirees:

• South Cyprus:
  • Foreign pensions are taxed at a rate of only 5%
  • Allowance of €19,500 for all types of income
  • No inheritance and gift tax
  • Double taxation agreement with Germany
• North Cyprus:
  • Lower tax rates than in the south
  • Foreign pensions often only minimally taxed
  • Attractive real estate prices

Quality of Life in Cyprus for Retirees

The advantages of Cyprus as a retirement domicile go far beyond financial aspects:

• Climate: 340 days of sunshine per year, mild winters with temperatures rarely below 15°C
• Health: Mediterranean climate good for respiratory and joint complaints
• Safety: Low crime rate and political stability
• Language: Widespread English knowledge facilitates daily life
• Infrastructure: Good medical care, modern telecommunications
• Cost of living: 20-30% cheaper than in Germany (especially in North Cyprus)
• Community: Active expatriate communities for easy social connection

Special Feature: Using the Divided Island as an Advantage

The political division of Cyprus offers German retirees unique opportunities:

• Living in the more cost-effective North Cyprus while using the amenities of the south
• Uncomplicated border crossings for EU citizens
• The best of both worlds: Cheaper living in the north, using EU advantages in the south

Discovering Cyprus with LongStay Cyprus: Testing Before Deciding

Before making a final decision about a permanent move, it's advisable to thoroughly get to know the potential new home country. This is especially true for retirees who want to spend the winter abroad to escape the gray and cold weather in Germany.

LongStay Cyprus offers the ideal opportunity to experience Cyprus intensively and find out if the island could be the right place for your long-term stay or even your new home.

The LongStay Cyprus Concept

LongStay Cyprus has developed a unique concept specifically tailored to the needs of retirees:

• Flexible duration of stay: Packages from 30 to 80 days
• Comfortable accommodation: Living in selected hotels or apartments in the more cost-effective North Cyprus
• Organized excursions: Discovery of the entire island, both in the north and south
• International travel: Excursion options to neighboring countries such as Egypt or Turkey
• Community: Meeting like-minded people and building social contacts
• Support: Guidance from experienced tour guides and local experts

The 30-Day Package from LongStay Cyprus

An ideal starting point is the 30-day package from LongStay Cyprus, which includes the following services:

• Accommodation in a comfortable hotel or apartment in North Cyprus
• 20 guided excursions to the highlights of the entire island
• 1 international excursion (e.g., to Cairo with a visit to the pyramids)
• Transfer from and to the airport
• Local transportation for all planned activities
• Support from German-speaking tour guides
• Information events about living in Cyprus

This comprehensive stay allows you not only to experience the tourist highlights but also to get to know everyday life on the island, compare different regions, and find out if Cyprus is suitable as a long-term winter domicile or even permanent residence for you.

Advantages of a Trial Stay with LongStay Cyprus

A long-term stay with LongStay Cyprus offers numerous advantages:

• Realistic picture: Experience Cyprus not as a tourist, but as a temporary resident
• Cost efficiency: Cheaper than a self-organized long-term stay
• Carefree: No elaborate planning and organization needed
• Expert knowledge: Benefit from the knowledge of local experts
• Community: Make contacts with like-minded people and local residents
• Comprehensive impression: Get to know both parts of the island
• Legal information: Receive valuable tips on residence regulations and tax aspects

Conclusion: Well-considered Decisions for Retirement Abroad

The question "How long can retirees stay abroad?" has no general answer. The legal framework varies considerably depending on the destination country and personal situation. From temporary winter escapes to permanent emigration – each scenario brings different regulations regarding residence, pension, health insurance, and taxes.

Particularly important when planning a stay abroad as a retiree:

• Thorough research: Inform yourself in detail about the legal and practical aspects of your destination country.
• Professional advice: Get support from experts in international pension and tax law.
• Trial stay: Get to know your potential new home country thoroughly before making a final decision.
• Flexible planning: Start with temporary stays to gain experience.

Cyprus proves to be a particularly attractive destination for German retirees – whether for a winter stay or a permanent move. The unique combination of pleasant climate, affordable cost of living, and attractive tax conditions make the island an ideal retirement domicile.

With a long-term stay through LongStay Cyprus, you have the perfect opportunity to experience the benefits of Cyprus yourself and make an informed decision about your future planning.

Request Your Individual & Non-binding Offer Now

Take the first step towards your winter domicile or new home in Cyprus. Discover with LongStay Cyprus what a longer stay on the Mediterranean island could look like and learn firsthand why so many German retirees choose Cyprus as the ideal destination for their retirement.