Retire in Germany from the US: the residence permit, the 2026 livelihood test, and where a lifetime annuity fits
Written by Hans Goldstein, licensed insurance agent · CA 4273294Short answer: Germany has no dedicated retirement visa; an American retires there on a residence permit under § 7(1) sentence 3 of the Residence Act, with no fixed euro figure: in 2026 offices measure income against the basic-needs rate of €563 a month for a single person or €506 per partner (€1,012 for a couple), plus rent and health insurance. A spouse of a German citizen is usually exempt from the livelihood test. A life-only annuity bought in the US gives the regular income offices ask for, and Germany taxes it on only an age-based share (21% if payments start at 62, 18% at 65). Germany has no wealth tax.
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Income rules and taxes by country: Norway, Switzerland, Sweden, Italy, Spain, Malta and more, plus how a lifetime annuity fits.
If you want to retire in Germany from the US, the paperwork side is one of the easier ones in Europe: US citizens can enter without a visa and apply for a residence permit at the local immigration office (Ausländerbehörde) within 90 days. The hard part is proving you can support yourself. Here is how that works for retirees and spouses in 2026, and where a US lifetime annuity helps.
The routes for an American
| Route | Livelihood test | Notes |
|---|---|---|
| Spouse of a German citizen (§ 28 AufenthG) | Usually not required: the permit “should as a rule” be issued without it | German must live in Germany. The consulate checklist asks for health insurance and a statement on how you will live |
| Spouse of a foreign resident (§ 30 AufenthG) | Required (§ 5), plus adequate housing | § 30(1) sentence 3 no. 4 waives the German language requirement in cases tied to nationalities that may enter visa-free for long stays, which include the US; ask how your office applies it |
| Retiree or person of independent means (§ 7(1) sentence 3) | Required, and discretionary | “In justified cases” a permit can be issued for a purpose the Act does not list. Retirement with secure income is the classic use |
The consulate’s checklist for joining a German spouse still lists A1 German. § 28(1) applies the § 30 language exemptions to spouses of Germans only by analogy, and the exemption for visa-free nationalities is worded around the nationality of “the foreigner”, so do not assume it covers you: ask your consulate or local office how they apply it.
What “secured livelihood” means in 2026
Under § 2(3) of the Residence Act, your livelihood is secured when you can pay for it, including adequate health insurance, without public funds. Berlin’s immigration office describes it as being able to pay housing, food, clothing, personal needs and health insurance permanently from your own regular income. There is no national euro threshold for retirees. Offices compare your net income with what basic income support would pay (Grundsicherung für Arbeitsuchende, which replaced Bürgergeld on 1 July 2026; the 2026 standard rates are set in the Regelbedarfsstufen-Fortschreibungsverordnung 2026):
| Component | 2026 figure |
|---|---|
| Standard rate, single person | €563 a month (unchanged from 2024 and 2025) |
| Standard rate, each partner in a couple | €506 a month |
| Housing | Your actual rent and heating |
| Health insurance | Your actual premium. Most Americans arriving as retirees need private cover; get a quote early |
So the real target depends on your city and your health premium. For planning, I use an illustrative €2,000 a month for a single retiree (€563 plus about €900 rent plus about €537 insurance). That is my assumption, not an official figure. Your local office decides.
Why I write about this. My mom is Norwegian, my dad is American, and they’re planning the move from the US to Norway. My mom is the sponsor (the host, or “reference person” in UDI’s words), so Norway’s income test falls on her income, not my dad’s. UDI told us in writing that money in an account does not count as income, and only lifelong income does. Their savings were not the problem; the paperwork wanted a monthly number in the host’s name. The rules in Germany are different, but the problem is the same one many retirees hit: the income test, not the net worth. I’m writing this to help others in the same boat as my parents. Read how we worked through the Norway income requirement.
In the same boat? Let’s run your numbers
See roughly what a lifetime annuity would cost to close your income gap, then get my personal read by email. I can help while you still live in the US.
Estimates use the September 9, 2026 ImmediateAnnuities.com payout survey (life only) and a 15% cushion. Illustrative, not a quote.
Do pensions, annuities and savings count?
- Pensions count. Berlin asks retirees for a pension statement (Rentenbescheid) as proof.
- A lifetime annuity is not named, but monthly payments for life from an insurer are regular income of the kind offices ask for. Bring the insurer’s letter and bank statements.
- Savings are not ruled out by the statute, but practice varies by office and the permit is discretionary. Regular income is the cleanest evidence, and it does not shrink at each renewal. Ask your Ausländerbehörde before relying on a balance.
Single or married: how much income you need to retire in Germany
| Household | 2026 basic-needs rate | Plus | Who must show it |
|---|---|---|---|
| Single retiree | €563 a month (about $659) | Rent, heating and health insurance | The applicant |
| Couple | €506 per partner, €1,012 a month (about $1,184) | Rent, heating and health insurance for both | The household; ask your office how it counts each spouse’s income |
| Each dependent child | A lower age-based rate (set in the same 2026 regulation) | Share of housing, insurance | The household |
| Spouse of a German citizen | Livelihood test usually waived (§ 28) | Health insurance still needed | Nobody, as a rule |
FX: $1.17 per euro, a planning rate; the ECB reference rate was $1.1225 on 2 October 2026, so these dollar figures include about 4% of headroom. There is no official all-in euro figure for retirees; the office adds your real rent and premium to the rate.
Example: a 62-year-old American moving to Germany
Single target: my illustrative €2,000 a month from above, about $2,340, plus 15% headroom, so about $2,691. Couple target: €1,012 plus about €900 rent plus about €1,074 insurance for two, rounded to €3,000, about $3,510, plus 15%, so about $4,037. These are my assumptions, not official figures. Payout at 62: ImmediateAnnuities.com survey of September 9, 2026, life-only, per $100,000 a month: man $603 average ($660 best), woman $582 ($637 best). Illustrative, not a quote.
| Buyer, 62 | Monthly gap | Premium at average rate | Premium at best rate |
|---|---|---|---|
| Single man, no other income | $2,691 | about $446,000 | about $408,000 |
| Single woman, no other income | $2,691 | about $462,000 | about $422,000 |
| Couple, $2,000 a month combined Social Security started at 62, annuity on the husband’s life | $2,037 | about $338,000 | about $309,000 |
Premium equals the monthly gap divided by the payout per $100,000, times $100,000. Social Security can start at 62, and any pension reduces the gap further. A joint and survivor annuity for a couple pays less per dollar than single life, so get a quote before you size it.
When the sponsor is not the breadwinner
This matters mainly for an American joining a non-German spouse who lives in Germany (§ 30), and for couples applying together under § 7; a German citizen’s spouse usually skips the test. Berlin’s immigration office says partners you live with and children up to 24 are included in the livelihood calculation, so the test looks at the household. It does not say in so many words that the American applicant’s own Social Security or annuity can carry the whole household, so ask your Ausländerbehörde how it will count each spouse’s income.
If the resident spouse is the lower earner and the pensions and savings sit with the American, the safest fix is a lifetime annuity owned by and paying the resident spouse, priced on that spouse’s age and sex, bought while you still live in the US, with payments started well before you apply so they show in the sponsor’s records. If your office confirms it counts the household together, the annuity can be in either spouse’s name.
US gift note (general information, confirm with a tax adviser): between two US-citizen spouses, gifts are unlimited. If the sponsor is not a US citizen, there is no unlimited marital deduction; for 2026 the annual exclusion for gifts to a non-citizen spouse is $194,000. Above that you file Form 709 and use part of your lifetime exemption, and generally no tax is due.
Which annuity counts
German law does not say income must be lifelong, but offices want regular income that lasts, and a life-only SPIA or joint and survivor SPIA, or an existing deferred annuity or MYGA converted to lifetime payments, shows exactly that at every renewal. Lifetime payments also get the age-based Ertragsanteil tax treatment below. A period-certain annuity ends, and an annuity still accumulating, or an income rider with a cash value you can still withdraw, reads as savings, which some offices discount.
Three common cases
| Your situation | Does an annuity help? |
|---|---|
| Married to a German citizen who will live in Germany with you | Usually not for the permit, since the livelihood test is normally waived. It can still give steady income for daily life |
| American couple retiring together, Social Security below the local target | Yes. It fills the gap with income that counts at every renewal |
| Large savings, little income, discretionary office | Often. It converts a balance the office may discount into the regular income it asks for |
Health insurance deserves its own line. Under § 2(3) adequate cover is part of a secured livelihood, and the consulate checklist for spouses asks for proof of cover at entry. For retirees the premium is often the largest single item after rent, so it drives how much income you must show.
How the annuity is taxed: Germany and the US
This is the good part. Germany taxes a private life annuity that falls under § 22 no. 1 sentence 3(a)(bb) of the Income Tax Act on only its Ertragsanteil, the interest share fixed by your age when payments start:
| Age when payments start | Taxable share of each payment |
|---|---|
| 58 | 24% |
| 60 to 61 | 22% |
| 62 | 21% |
| 65 to 66 | 18% |
| 67 | 17% |
| 69 to 70 | 15% |
| 75 | 11% |
Example: $14,300 a year starting at 65 means about $2,570 is taxable income in Germany, at normal progressive rates (14% to 45% under § 32a of the Income Tax Act, plus solidarity surcharge at high incomes). The share is fixed for life when payments start. Whether a contract from a US insurer is treated the same way as a German private annuity is a question for a German tax adviser (Steuerberater); the statute’s category (bb) covers every life annuity outside the German public and Basisrente schemes and does not distinguish by insurer country, but confirm before you rely on it.
US side. As a US citizen you stay taxable on worldwide income wherever you live. A US single premium immediate annuity bought with after-tax savings is taxed under IRC 72: an exclusion ratio makes part of each payment a non-taxable return of your premium until the premium is recovered. If you bought it with IRA money, every payment is taxable. The foreign earned income exclusion does not cover annuities (IRC 911(b)(1)(B)(i)). Foreign tax on the payments can be credited on Form 1116, through the treaty’s relief article where there is one. Since January 1, 2026, a US citizen with a foreign residence address cannot opt out of federal withholding, even if payments go to a US account (IRC 3405(e)(13), Treas. Reg. 31.3405(e)-1). Withholding is a prepayment, not extra tax. An annuity from a US insurer is not reported on FBAR or Form 8938, and it is not a PFIC.
Treaty. Under Article 18(2) of the US-Germany treaty, an annuity paid to a resident of Germany is taxable only in Germany. The saving clause (Article 1(4)) lets the US keep taxing its citizens, and Article 23(5), added by the 2006 Protocol, sets out how double tax is relieved for a US citizen living in Germany. US Social Security paid to a German resident is taxable only in Germany under Article 18(5), and the 2006 Protocol carves that rule out of the saving clause, so it applies to US citizens too.
Net result. Germany taxes only the age-based share (11% to 24% for payments starting between 75 and 58), while the US taxes the non-excluded part of each payment, which is usually the larger slice. In most cases the US tax is the binding one after credits, and the German bill is light. For a US annuity, Germany is a tax-friendly place to live compared with drawing down an investment account whose gains are taxed in both countries.
Does Germany have a wealth tax?
No. Germany has not levied its wealth tax (Vermögensteuer) since 1997, so neither your savings nor a US annuity sits in any wealth tax base, and there is no wealth-tax reason to convert savings. In Germany the annuity case rests on the livelihood test and the light Ertragsanteil income tax.
Practical steps
- Pick your city and get a rent estimate and a private health insurance quote; that sets your real target.
- Buy a life-only SPIA for the gap plus headroom while you still have a US address.
- Avoid cash-out or commutation features; ask for a letter stating the amount “for the lifetime of the annuitant”.
- Start payments 3 to 12 months before your appointment so statements show real deposits.
- Enter Germany visa-free, register your address within two weeks, and apply within 90 days.
The trade-offs, once: the premium is gone for good, a level payment loses buying power unless you add a cost-of-living rider, and you are paid in dollars against euro costs. In Germany the annuity is the way to meet the livelihood test with income that looks the same at every renewal, with a light tax bill on top.
Married? Make the income outlive either of you. In Germany spouses may add their incomes together, so two smaller annuities, one on each spouse, can work as well as one larger one. If a single-life annuity is on one spouse and that spouse dies first, the payments stop, and the surviving spouse may have to show income of their own at the next renewal. A joint and survivor annuity, which keeps paying until the second death, or a separate annuity on each spouse closes that gap. Joint and survivor pays less per dollar than single life, so ask for both quotes and compare.
Frequently asked questions
Free annuity gap analysis for Germany. Tell me your ages, your Social Security or pension, and whether you are single or a couple. I will show how far your income is from the Germany requirement and what a lifetime annuity would cost to fill the gap, in the sponsor’s or main applicant’s name where that matters.
Related reading
- Moving abroad on a fixed income: hub
- Austria settlement permit for retirees
- Switzerland retirement and wealth tax
- Netherlands income requirement and Box 3
- How European countries tax a US annuity
- The exclusion ratio for Americans abroad
- Immediate annuity calculator
Sources
- Aufenthaltsgesetz section 7
- Aufenthaltsgesetz section 2 (secured livelihood)
- Aufenthaltsgesetz section 28 (family of Germans)
- Aufenthaltsgesetz section 30 (spouse reunification)
- German Missions in the US: Residence visa
- German Missions in the US: Family reunion with a German spouse checklist
- Service Berlin: Calculating livelihood for residence titles
- Regelbedarfsstufen-Fortschreibungsverordnung 2026, section 2 (standard rates)
- US-Germany 2006 Protocol (Art. 18(5) social security, Art. 23(5))
- Aufenthaltsverordnung section 41 (visa-free nationals apply within 90 days)
- Einkommensteuergesetz section 22 (Ertragsanteil table)
- PwC Worldwide Tax Summaries: net wealth tax rates by country
- IRS: tax inflation adjustments for 2026 (gifts to a non-citizen spouse)
- US-Germany income tax treaty (IRS text)
- 26 U.S.C. 3405 (withholding on pensions and annuities)
- ImmediateAnnuities.com: annuity rates by age (survey September 9, 2026)
Goldstein & Co. LLC dba Goldstein Insurance Services · Hans Goldstein, licensed insurance agent, CA lic. #4273294 · NPN 20602398 · 213-414-2808 · hans@hansgoldstein.com
Education, not tax, legal or immigration advice. Rules, thresholds and exchange rates change; confirm with the consulate or immigration authority and a local tax adviser before you act, and get answers in writing. Hans Goldstein is a licensed insurance agent (CA 4273294) and can only offer annuities to residents of states where he is licensed. Annuity payments are guaranteed by the issuing insurer’s claims-paying ability, not by any government. Payout figures are illustrations from a published survey, not quotes. Immediate annuities are generally irrevocable.