German Pension Refund: How to Get Your Money Back
If you have worked in Germany, there is a remarkable opportunity awaiting you: the German pension refund. It’s likely that pension contributions were deducted from your salary each time you were paid. This enticing chance allows you to reclaim lost funds and potentially receive a substantial sum of money.
Now, if you have left Germany, or have no plans to retire there, you may be wondering how you can claim back your German pension refund.
The answer to that question depends on your personal circumstances.
So, with that in mind, we’ve put together this complete guide to explain everything you need to know about your German pension refund.
I am working in Germany. Do I have to pay into a pension fund?
Germany’s pension system is one of the best in the world.
Participation in the statutory pension insurance benefit - gesetzliche Rentenversichering (RV) is mandatory for anyone who is working in Germany (including many self-employed workers).
Up to a maximum contribution ceiling (Beitragsbemessungsgrenze), everyone must contribute 9.35% of their gross monthly salary (including expats) to their pension.
The employer matches the compulsory contribution of the employee and the sum is transferred to the employee’s personal pension account.
What is German pension refund?
If you paid mandatory contributions to the German pension fund for fewer than 5 years and now live outside of the EU, you may be eligible for a German pension refund.
Keep in mind too that you will not receive your pension refund automatically. You must apply for it yourself.
Is it possible to claim the money back from the German pension refund when you leave Germany?
Whether you can get your pension money back when you leave Germany depends on your nationality and where you live after leaving. We will take a closer look at who can and cannot apply for a pension refund below.
Who can claim a German pension refund when leaving Germany?
To be eligible for a German pension refund, you must meet the following requirements:
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You reside outside the European Union (EU), European Economic Area (EEA), Switzerland, and the UK.
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You have not made any contributions to the German pension fund within the past 24 months. AND
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You are not allowed to voluntarily contribute to the German pension fund. OR
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You have reached the retirement age in Germany but do not qualify for pension benefits. To qualify, you need to have made contributions for at least 5 years. Currently, the retirement age in Germany for the year 2023 is 66 years, and it will be raised to 67 years by 2031.
The average German pension insurance refund is €5410
Is it possible to receive a German pension refund after contributing for 5 years?
No, you cannot. Once you've contributed for five years or more, you can't get a refund anymore, regardless of your age or where you live.
However, when you reach the statutory retirement age, you can apply for a German pension instead of claiming a refund.
Are UK nationals eligible for a German pension refund after Brexit?
For UK citizens, the possibility of claiming a German pension refund for their contributions depends on the timing of their employment.
If they started working or had already been working prior to Brexit taking effect (January 1st, 2021), their social security contributions will be treated as those of an EU citizen. Consequently, no refund can be obtained, even for the period worked in Germany after Brexit.
Following Brexit, the UK is classified as a contracting country. This means that if an individual began working in Germany only after the Brexit transition period concluded (January 1st, 2021), they will have the potential to claim a pension refund in the future if they meet the following criteria:
- They have not contributed to the German pension fund in the past 24 months.
- They reside outside the EU, EEA, and Switzerland.
- They have worked and made contributions in Germany for fewer than 60 months.
I am eligible for a German pension refund! How do I claim it back?
You can either apply directly yourself with the German authorities. Or alternatively, if you would like some help, you can apply with Taxback.
Our experienced team will ensure you receive your maximum refund amount (we can even go back as far as 1994) and transfer your refund straight to your bank account anywhere in the world.
When can I claim my German pension refund?
If you are a non-EU citizen, you can apply for a refund if more than 24 months have passed since your last German Pension contribution.
What is the average pension refund in Germany?
The average German pension refund the Taxback.com customers get is €5410. However, exactly how much you will receive will depend on your personal circumstances.
The actual refund amount you receive will depend on how long you worked in Germany and how much you earned. In many cases, it can add up to several thousand euros.
How long does it take to get your German pension refund?
After you submit your documents, it takes between 1 and 6 months to be processed. (Please, note that you can only apply for a pension refund from Germany at the earliest 24 months after you have stopped working in the country.) While you are not eligible to receive a refund until two years have passed since you left Germany, you can still start your application. This will help you to save some time when submitting your application.
Is my German pension refund taxable?
No, your refund is not taxable.
How to claim my German pension refund
If you decide to claim the refund yourself, once you have your forms completed, you must add a copy of your passport and send it to the Deutsche Rentenversicherung.
Afterwards, you should wait up to six months before the Deutsche Rentenversicherung reviews your case. They will send you a ‘Bescheid’ letter, to the address you provided in the application form, which will contain the period of contribution and the amount refunded.
It’s important to be aware that, while you can apply in any language, Deutsche Rentenversicherung replies only in formal German. So, depending on your level of German, this can make the process more difficult.
Who can help me claim my German pension refund?
Many non-German nationals find it difficult to communicate with Deutsche Rentenversicherung, due to the language barrier and an unfamiliarity with the refund application process.
If you find the prospect of applying for your German Pension Refund to be daunting, Taxback.com can help you.
We take the stress out of applying for your German Pension refund.
Our agents will keep you updated throughout the process and communicate directly with the German pension office on your behalf.
Feel free to contact us, and ask us any questions. We have Live Chat Support and our tax experts are available 24/7.
How to apply with Taxback.com?
The process is as simple as possible. You will need to complete a simple registration form and send us copies of your final payment document, passport/ ID card, and current bank account statement. Email this to us, and leave all the tricky paperwork to our team of German tax experts.
The average German pension insurance refund is €5410
Why choose Taxback.com?
- Your maximum German pension refund guaranteed
- Stress-free online process
- We handle the paperwork
- We transfer your income tax refund from Germany to your bank account, anywhere in the world
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