Germany offers numerous tax-saving and wealth management opportunities for expats. At Expat Finances, we guide you on how to invest your money in Germany while taking full advantage of available tax benefits and financial optimization strategies.
Taxation, tax exemption and finance
For whom?
What are the investment options available in Germany?
Germany offers various ways to invest your money, tailored to your financial goals and personal profile. Whether you're looking for secure savings, high-performing financial investments, or smart tax optimization, there are solutions specifically well-suited for expats living in Germany.
- Secure savings
- Financial investments
- Tax-deductible retirement plan
- Life assurance and Lebensversicherung
- Rental property in Germany
Secure savings
The German savings plans (Bausparvertrag), the Sparbuch, and the Festgeld are low-risk investment options, ideal for those looking to protect their capital while earning attractive interest rates.
Financial investments
Opening a brokerage account in Germany allows you to invest in stocks, bonds, ETFs, thematic funds, helping you diversify your portfolio.
Tax-deductible retirement plan
The Rürup pension (Rürup-Rente) is a retirement savings plan in Germany that offers significant tax benefits, making it an effective way to prepare for the future while lowering your taxable income.
Life assurance and Lebensversicherung
A Lebensversicherung is a long-term savings solution with favorable tax treatment, making it ideal for efficient estate planning and wealth transfer.
Rental property in Germany
Investing in real estate allows you to generate stable rental income and benefit from tax deductions on mortgage interest.
Taxation of Investments in Germany – Guide for Expats :
| Type of Investment | Taxation in Germany | Notes / Key Consideration |
|---|---|---|
| Bank accounts, brokerage accounts, savings plans | Investment income (interest, dividends, capital gains) is taxed at a flat rate of 26.375% (Kapitalertragsteuer + solidarity surcharge). | All worldwide investment income is taxable in Germany if you are tax resident here. Double-taxation treaties may apply. |
| Life insurance / Investment-linked policies | Returns are not taxed until you withdraw the funds. | What matters is your residency in Germany, not the country where the policy was issued. Always check the applicable Double Taxation Treaty (DTT). Being taxable in Germany does not automatically mean the income is exempt abroad. |
| Private pension schemes (e.g. Rürup, Riester, company pensions) | Contributions are tax deductible from taxable income. Depending on your tax bracket, you can save up to 47% in taxes. | The German government actively promotes private retirement savings with tax advantages and subsidies. |
| Real estate | Rental income for real estate located in Germany is taxed as ordinary income (progressive tax rates, up to ~47%). Mortgage interest, depreciation and expenses are deductible. You may also offset rental losses against other income. | Always check the applicable Double Taxation Treaty (DTT). Being taxable in Germany does not automatically mean the income is exempt abroad. |
| Gold, crypto-currencies | Capital gains are tax-free after 1 year of holding. | The FIFO method (first in, first out) is applied to determine the holding period. |
What we offer in tax and financial planning:
Definition of a wealth management strategy:
Every expatriate has unique financial goals—whether it's building capital, preparing for retirement, or optimizing taxes. We help you analyze your financial situation, set clear priorities, and develop a wealth management strategy tailored to your status in Germany. Our expert guidance covers the best saving, investment, and tax-efficient solutions to help secure your financial future.
Salary negotiation advice
Expat compensation in Germany can be optimized by considering various elements: gross salary, benefits in kind, social security contributions, and taxation. We help you negotiate your salary with a deep understanding of the German tax system, aiming to maximize your purchasing power and long-term savings.
Tax return advice :
Filing a tax return in Germany can be complex for expats
We help you understand your tax residency status, complete your German tax return, and optimize your tax liability.
Questions like "Do I need to file a tax return in Germany, and if so, how?", "Am I eligible for a tax refund?" are common—we guide you through the process based on your situation, whether you're an employee, entrepreneur, or investor.
Depending on your status, you may qualify for tax deductions, refunds, or tax credits. Our goal is to help you reduce your tax burden and make the most of the benefits available to you.
Tax optimization and tax saving strategies
Germany offers numerous tax-efficient schemes for expatriates looking to invest and save wisely. We help you identify and make use of these opportunities to minimize your taxes while growing your wealth :
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- PER and Rürup-Rente : Retirement savings plans that offer immediate tax deductions and help you build capital for retirement.
- Rental property investment : Tax deductions on loan interest and depreciation.
- Life insurance and German Lebensversicherung : Inheritance-friendly savings plans with reduced taxation.
- SCPI and Stock Market Investments : Investment strategies to reduce tax on capital gains and passive income.
Opening a savings plan :
We help you choose and subscribe to savings plans that match your financial goals and personal circumstances :
- Opening a German home savings plan (Bausparvertrag) : A home savings plan specific to Germany that helps you prepare for a future real estate purchase while benefiting from guaranteed interest rates.
- Subscribing to a sparbuch or festgeld account : Secure savings products with guaranteed returns — ideal for safely growing your money.
- Opening Livret A and LDDS Liquidity solutions for savings available at any time.
Financial investment management and wealth planning :
We guide you in selecting and subscribing to investment products in Germany, based on your risk profile and return objectives :
- Subscribing to a life insurance policy (Lebensversicherung) : A long-term savings product that allows you to build capital with favorable tax treatment and plan for wealth transfer in Germany.
- Setting up a tax-deductible retirement plan : The Rürup pension (Rürup-Rente) is an ideal solution for retirement planning in Germany, offering immediate tax advantages and secure supplementary income.
- Brokerage account and stock market investing : Opportunity to invest in stocks, ETFs, bonds, or thematic funds, tailored to your return strategy.
- Alternative investments : Precious metals, dividend-paying funds… alternative investments to diversify your portfolio with tangible and profitable assets.
Support for rental property investment in Germany :
Real estate investment in Germany allows you to generate rental income while benefiting from tax advantages such as mortgage interest deductions and property depreciation. We support you throughout the process — from property selection and financing to rental management — to help you maximize your returns.
Support for investment in SCPI Germany:
Investing in a Société Civile de Placement Immobilier (SCPI) allows you to benefit from rental income without direct management, while enjoying attractive yields and optimized tax treatment. We can help you select the best German SCPIs to diversify your real estate portfolio.