More and more German pensioners dream of spending their golden years abroad. At the top of the wish list is the neighboring country Austria, as the magazine “Capital“ reported.
Austria is the most popular emigration destination for Germans
After Pension Atlas 2023 According to the German Pension Insurance (DRV), around 28,000 German insured persons receive their pension in the picturesque Alpine republic. Austria is proving to be the most popular destination for emigrants, followed by Switzerland, Spain, the USA and France.
It is not just the geographical proximity and a similar standard of living to that in Germany that make Austria attractive. With colorful cities such as Vienna, Salzburg and Innsbruck on the one hand and picturesque idylls such as Tyrol, Carinthia and the Salzkammergut on the other, the country attracts numerous German senior citizens.
Austrian cosmetics and food cost 24 percent more than in Germany
However, caution must be taken in view of the higher cost of living. A purchase of food and cosmetics costs on average 24 percent more in Austria than in Germany, according to a Price monitor of the Austrian Chamber of Labour (AK).
As “Capital” further reports, health care for German pensioners in Austria remains largely the same. The reason for this is a social security agreement between the two countries. German health insurance policies remain valid; proof of entitlement from the German health insurance company is sufficient.
Nursing care allowance from German nursing care insurance will also continue to be paid. However, direct nursing care benefits to finance a nursing service cannot be claimed abroad, including in Austria.
No double taxation for emigrants
In order to prevent double taxation of income, Germany and Austria have concluded an agreement. According to this double taxation agreement, company and private pension contributions of emigrants are only taxed in Austria, while income from real estate in Germany continues to be subject to German tax.
However, German pensioners must forego certain tax benefits, such as the annual basic tax allowance of 10,000 euros, unless they submit an application for unlimited tax liability to the Neubrandenburg tax office.
Pensioner emigrates to Thailand and fights for survival
However, emigrating in retirement does not always have to end well, as shown by the fate of 77-year-old John Jones, who left Great Britain for Thailand to spend his retirement. “The cost of living is rising, and what you could get for food 13 years ago is now not even enough for half of it,” said the pensioner.iNews“.
For Jones and many others hit by rising inflation, pensions remain at a consistently low level. There is no hope of adjustment or improvement in living conditions. Since there is no mutual social security agreement between Thailand and the UK, there is no prospect of a pension increase from British policymakers.