If you want to retire in Germany as an American, you won’t be alone. A New York Times article cites figures ranking Germany fourth in the world for the number of Americans who retire there.
Key Takeaways
- You can visit Germany for as many as 90 days without a visa, plenty of time to test the retirement waters.
- The cost of living in Germany is surprisingly low.
- Healthcare in Germany is first-rate, but expensive.
- Renting is more prevalent than homeownership in Germany.
Why Americans Like to Retire in Germany
What attracts retirees to Germany? Numbeo.com, which ranks countries based on various quality-of-life criteria, ranks it very high on purchasing power, high on safety, and high on healthcare. One factor that may work against it as a retirement favorite is that Germany can’t claim a whole lot of sunshine during the year. Berlin’s average of 1,625 hours of annual sunshine just can’t compete with Barcelona’s 2,524.
Still, there are other pluses. Other (perhaps sunnier) European countries are just a train ride away. What’s more, a not-insignificant number of Americans have come to know Germany because they were stationed there in the U.S. military, which had 35,068 personnel deployed there as of March 31st 2024, according to the U.S. government’s Defense Manpower Data Center.
Paperwork Needed to Retire in Germany as an American
Americans won’t need a visa for a visit of up to 90 days. If you decide to stay longer, it is possible to apply for a residence permit while you are there. Use those first three months to test the waters and decide whether Germany is the right place for you, but remember that no paid work is allowed while you’re there.
Cost of Living in Germany
Life in Germany is not as inexpensive as some of the other destinations that attract retiring Americans. Expatistan.com’s ranking of the most expensive cities in Europe puts Munich, Germany in 17th place. Berlin follows at 16th, and Frankfurt notches at 21st.
Numbeo’s 2024 comparison of the cost of living in Chicago and Berlin shows that, in general, consumer prices in Berlin are 19% less than in Chicago, while consumer prices plus rent are 34% lower. Groceries are 45% less, and a monthly transit pass will cost $50. To rent a one-bedroom apartment in the center of Berlin costs an average of $1,371 per month; outside the center, $976. To buy a one-bedroom apartment would cost $560 to $764 per square foot, depending on how central you want to be. To join a fitness club, expect to pay $38 per month. A pint of domestic beer will cost you less than $2, a movie ticket $14.
Note
In 2013, out of the 373,224 retired Americans living abroad in 2013, 24,499 chose to move to Germany.
Surprising Facts About Housing in Germany
Well, at least they’re surprising to Americans. In 2021, 70% of the EU population lived in households that owned their homes, with Romania, Slovakia, Hungary, and Croatia showing the highest ownership rates. Germany was the only EU country where renting was more common, with over 50% of the population as tenants.
Probably because renting is considered a viable long-term option, very few flats are rented furnished. And the term “furnished” doesn’t just refer to beds and chairs; kitchen cabinets and appliances may be absent too. One blogger shares her experience: “We were lucky that our flat had a fitted kitchen, so we didn’t find ourselves making a mad dash to Ikea for cupboards, but we did have to buy ourselves a dishwasher, washing machine, and light fittings.”
Important
If you plan to retire in Germany, or even just want to do a test run, learn some German before doing so.
Healthcare in Germany
Germany’s healthcare system is one of the best in the world, but with the high standards come high costs. That is why you absolutely must have comprehensive health insurance before you go. It should be one of the first things you arrange. You will find that most doctors will speak some English, but if you want someone who is fluent, you can check with the U.S. embassy or consulate.
Dental treatment is extremely costly—although as an American, you’ll be used to that—and insurance often doesn’t cover dental work. It is not unusual for foreign residents of Germany to return to their home country for dental treatment.
Do I Need a Residence Permit to Retire in Germany?
Generally speaking, yes. U.S. citizens need a residence permit to retire in Germany. You can apply for this permit either before arriving in Germany or once you are there on a 90-day tourist visa.
Can I Receive Social Security Benefits While Living in Germany?
Yes, Americans can receive U.S. Social Security benefits while living in Germany. The U.S. and Germany have a social security agreement that ensures you won’t lose access to your benefits when living abroad. However, you may still be liable for U.S. taxes on your Social Security income, depending on your total income level.
How Do I Apply for Health Insurance in Germany as a Retiree?
To apply for health insurance in Germany, you will need to choose between public and private health insurance. Private health insurance is often required for retirees without an employment history in Germany.
The Bottom Line
This is how the online newsletter “Insider Monkey” summed up why Germany may be a good retirement destination for Americans: It offers culture, safety, first-world perks, recreation, and great healthcare. Also, it is a country where “you can maximize your cashed out retirement funds and pension.”
If you want to retire in Germany as an American, or even if you are just going to try out the idea, you will greatly enhance your time there by learning some German before you go. Many Germans, particularly in larger cities, speak some English, but in smaller towns that may not be as true. Knowing some German will make meeting new people substantially easier, and feeling that you can make yourself understood will reduce the stresses of starting life in a new country.
Read the original article on Investopedia.