UK State Pension Transfer to Germany

If you’re relocating from the UK to Germany, you may want to know how to manage your pension arrangements after the move. Although the German pension system (Deutsche Rentenversicherung) can be complex – and pension transfers from the UK have become more complicated since Brexit – the good news is that it’s still possible to access both state and private retirement funds while living in Germany.

This guide explains how a UK state pension transfer to Germany works, along with the options for transferring or accessing private and workplace pensions from the UK. It also looks at how providers such as Wise can help reduce the high fees and exchange rate markups often charged by banks when receiving your pension payments in a different currency.

Can I transfer my UK pension to Germany?

The UK and Germany have broadly similar three-tier pension systems consisting of a compulsory state pension, workplace pensions, and private pensions. If you move from the UK to Germany, what happens to your pension depends on the type you have.

You cannot transfer a UK state pension abroad. However, you can still receive your state UK pension in Germany. This can be paid into either a UK or German bank account. To qualify, you must have made enough National Insurance (NI) contributions in the UK.

Because Germany is in the EU, your UK State Pension should continue to increase each year in line with UK pension uprating rules. However, you generally cannot claim pension credit if you move abroad.

You can transfer many workplace and private pensions to Germany. Transfers are usually via a Qualifying Recognized Overseas Pension Scheme (QROPS) approved by HMRC. Transferring to a non-QROPS can lead to significant tax charges.

You may also be able to transfer a Self-Invested Personal Pension (SIPP), although not all overseas schemes accept these transfers.

Most “defined contribution” workplace pensions can usually transfer overseas. However, “defined benefit” pensions (e.g., many public sector and civil service pensions) are often difficult or impossible to transfer out of the UK.

If a transfer is not possible or worthwhile, you can normally keep the pension in the UK and receive payments into either a UK or German bank account when you retire.

UK pension type	Can you transfer to Germany?	Typical option
State	No	Receive payments into a UK or German account
Workplace (defined contribution)	Usually yes	Transfer to a QROPS or keep in the UK
Workplace (defined benefit)	Often no	Keep in the UK and receive payments abroad
Private/SIPP	Yes	Transfer to a QROPS or keep in the UK

Transferring the UK State Pension to Germany

You can’t transfer a UK state pension to Germany but you can still claim your pension while living there.

How it works post-Brexit

Before Brexit, the UK was part of the European Union’s pension coordination system. This allowed people who lived and worked in more than one EU country to combine their social security contribution records when applying for a state pension.

Although the UK has left the EU, similar rules still apply between the UK and EU countries, including Germany, under the post-Brexit social security agreements.

If you move from the UK to Germany, your pension rights are generally kept separate between the two countries. Your UK State Pension is based on your UK National Insurance (NI) contributions, while any German state pension depends on contributions made in Germany.

Both countries have minimum qualifying periods. In the UK, you normally need at least 10 qualifying years to receive any State Pension. In Germany, the minimum period is usually five years. However, contribution periods from the UK and Germany can usually be combined to help you qualify.

The UK government will continue to pay your UK State Pension if you live in Germany. You can choose to have it paid into a UK bank account or directly into a German bank account in euros.

Claiming your pension from abroad

Here is a step-by-step process to claiming your UK state pension in Germany:

1. Check your state pension age – this is the earliest age at which you can claim your pension, although you can delay it if you wish. The current UK pension age is between 66 and 67. This is the same as in Germany, although you can claim a state pension from the age of 63 if you have made enough contributions.
2. Get a state pension forecast – this will tell you how much you will get, based on your NI contributions.
3. Contact the UK International Pension Centre (IPC) or the German Pension Authority – if you live in Germany and have worked there, you can usually make your claim through Deutsche Rentenversicherung, which coordinates with the UK authorities. Alternatively, you can contact the IPC either online or by claim form. This is the Department for Work and Pensions (DWP) system for people living abroad. You should normally begin the process around four months before you want payments to start.
4. Gather your documents – you will need to provide your passport/valid ID, your NI number, your German social security number (if applicable), details of your UK and German employment history, and dates that you’ve lived/worked abroad.
5. Decide where you want to be paid – you can receive payments to a UK account in GBP or a German account in EUR. You’ll need to provide bank details to the IPC.
6. Choose your payment frequency – UK state pension payments are usually every four weeks.
7. Check whether you qualify for a German pension – if you have paid into the German system, you may also be entitled to a German state pension. The UK and German pension authorities will coordinate contribution records where applicable.

Transferring Private and Workplace Pensions

You can transfer most private and workplace UK pensions to Germany. The main vehicle for this is QROPS.

What is QROPS?

A Qualifying Recognised Overseas Pension Scheme (QROPS) is an overseas pension scheme that meets HMRC requirements and can receive transfers from UK-registered pension schemes, including private and workplace pensions. Although the pension is regulated overseas, the scheme must broadly comply with rules similar to those applying to UK pensions – including minimum pension access ages (currently 55, rising to 57 in 2028).

There are currently QROPS schemes in 27 overseas countries, including Germany which has five current schemes. The list updates frequently, so check that a scheme still qualifies before transferring your pension.

Transferring a UK pension to a non-QROPS overseas scheme can trigger significant UK tax penalties, including unauthorised payment charges of at least 40%. Because of these risks, many UK pension providers will only transfer pensions to recognised QROPS schemes.

If you place your pension in a QROPS in Germany, you will receive it in EUR and are usually taxed in Germany if you are a German tax resident. Receiving your pension in euros can also reduce exposure to currency exchange fluctuations.

HMRC continues to monitor QROPS transfers for five full UK tax years after the transfer. Certain withdrawals or changes in circumstances during this period could trigger substantial UK tax charges if the scheme no longer meets HMRC requirements or exemption conditions cease to apply.

QROPS schemes can offer a wide range of investment options, including collective funds, equities and bonds, although the available investments vary by provider. One disadvantage is that QROPS arrangements often involve relatively high fees, including setup charges, annual administration costs, and adviser fees.

The 25% Overseas Transfer Charge

In 2017, the UK government introduced a 25% overseas transfer charge on QROPS transfers. However, you are usually exempt from the charge if:

• Your employer sponsors the QROPS
• You live in the country where your QROPS is based and you haven’t exceeded your available overseas transfer allowance (currently set at £1,073,100)

If your transfer exceeds the overseas transfer allowance, the 25% charge may apply to the excess amount.

SIPPs for expats in Germany

An alternative to transferring a private pension into a QROPS is to keep your pension in the UK through a Self-Invested Personal Pension (SIPP). A SIPP is a flexible type of pension that lets you choose how your money is invested, either by selecting investments yourself or by using investment options managed by the provider.

SIPPs are regulated in the UK by the Financial Conduct Authority (FCA). Many providers allow non-UK residents to keep or manage a SIPP after moving abroad, although some providers may restrict new contributions or account access for overseas residents.

If you move from the UK to Germany and keep a SIPP, pension payments are usually made in GBP. This means exchange rate changes can affect the value of withdrawals when converted into EUR.

SIPPs offer UK tax advantages. UK tax relief on contributions is generally available up to annual limits, currently £60,000 for most people. However, if you become a non-UK resident, tax relief usually only continues for up to five UK tax years unless you have relevant UK earnings. You can normally also take up to 25% of your pension tax-free when you want to start withdrawing – earliest age 55 (increasing to 57 in April 2028).

Before making decisions, it is important to consider cross-border tax rules, as many countries tax residents on worldwide income. You should also check the costs involved, including annual management, investment, and transaction fees.

SIPP vs QROPS in Germany

	Keeping a SIPP in the UK	Moving to a German QROPS
Taxation	Subject to UK pension rules but income taxed in Germany, with double taxation usually avoided through the UK-Germany tax treaty. UK tax relief on contributions and tax-free lump sum withdrawal up to 25%, although may be subject to taxation in Germany.	Income subject to German tax. Overseas transfer charges of 25% if you exceed transfer allowance (just over £1m). Possible tax penalties if you withdraw within five years of setting up.
Investment Flexibility	Highly flexible with access to wide range of investments chosen either by pension holder or SIPP provider.	Often flexible, with multicurrency investment options, but varies depending on provider.
Ease of Access	Easy access and flexible drawdown from age 55 (increasing to 57 in 2028), although not all SIPP providers accept non-UK residents.	Easy access and flexible drawdown from age 55 (increasing to 57 in 2028), although fees (setup and ongoing) often more expensive, and switching later can be complex.

Tax Implications: UK vs Germany

When planning your pension arrangements for your relocation to Germany, you will need to consider the tax implications. Where will your pension be taxed, and what taxes will apply?

Double Taxation Agreements (DTA)

Both the UK and Germany apply income tax at the normal progressive rates for that country. If you move to Germany and become a tax resident, you will pay tax on your worldwide income. Meanwhile, you’ll also be liable for UK income tax on UK-sourced income.

This can have implications for pensions kept in the UK. Fortunately, the UK and Germany have a Double Taxation Agreement (DTA) to reduce the risk of paying tax twice on the same pension. Under the UK-Germany DTA, most pensions are generally taxable only in the country of residence, meaning UK pensions are usually taxed in Germany once you become a German tax resident. UK government service pensions are typically taxable in the UK. In many cases, UK pension payments can be paid gross after obtaining treaty relief from HMRC.

Germany may also levy health insurance contributions on pension income for individuals within the statutory health insurance system.

The UK and Germany do not currently have a comprehensive inheritance tax treaty. This creates potential double-taxation issues for estates and inherited pension assets, particularly as UK rules from April 2027 are expected to bring more unused pension funds within the scope of UK inheritance tax. German tax treatment of inherited pensions and survivor benefits depends on the structure of the pension and the beneficiary relationship.

Because cross-border pension taxation between the UK and Germany is highly complex, specialist tax advice is strongly recommended.

Is my pension taxed in the UK or Germany?

Type of pension	Where taxed?	Income tax rate
State	Germany (included along with other forms of income)	Progressive rates of 14–45% on income above €12,350
QROPS	Germany (included along with other forms of income)	Progressive rates of 14–45% on income above €12,350
Government Service Pensions (defined benefit, e.g., civil service, public sector)	UK (included along with other forms of income)	Progressive rates of 20–45% on income above £12,570(*different rates and thresholds in Scotland)
SIPPS	Germany (included along with other forms of income)	Progressive rates of 14–45% on income above €12,350

The Best Way to Receive UK Pension Payments in Germany

If you are an expat paying a UK pension into a German bank account, or transferring pension payments from a UK account to Germany, one of the biggest problems is the cost involved. Banks often hide fees in the exchange rate. These are typically around 3–4% above the mid-market rate, which can significantly reduce your retirement income over time.

For example, if you receive a monthly pension of £1,500, a 3% exchange rate markup would cost you around €50–55 per month, or €600–660 per year. Apply this across decades of retirement and you can see how the costs can run into thousands.

When receiving pension payments from abroad, using a service like Wise can help you avoid high conversion fees. Wise uses the mid-market exchange rate with no hidden markups, and a small transparent, upfront transfer fee. This will enable you to enjoy more of your pension pot.

Price comparison research has shown that Wise can be cheaper than UK banks for international transfers. In fact, Wise is on average 3x cheaper than UK banks and other money exchange providers on GBP>EUR transfers (June, 2025).

You can also open up a Wise Account to hold your pension in 40+ currencies including GBP and EUR, plus get local UK account details (Sort Code, Account Number) to receive your pension like a local, then convert to EUR at the mid-market rate when you choose to.

Step-by-Step: How to initiate your QROPS transfer

Here are the steps to take to transfer your UK pension to a German QROPS:

• Step 1 – Contact your pension provider: Before you do anything else, you’ll need to make sure that your UK pension provider allows overseas transfers. Most do for QROPS. You should also find out what information your provider needs, what fees apply, and how long the transfer should take.
• Step 2: Check the HMRC list of recognized overseas schemes: The UK government has a list of QROPS for applicable countries, organized alphabetically. You can research each scheme yourself as well as get advice from your pension provider and an independent financial professional.
• Step 3: Seek professional financial advice: It’s always a good idea to get qualified advice when making big financial decisions, especially if it involves finances across borders. The UK Government Money Helper website has information on how to find a pension or retirement adviser.
• Step 4: Set up a Wise account for currency management: A Wise multi-currency account will help you manage your pension payments and any cross-border transactions. You can receive your QROPS payments in EUR, hold and convert into 40+ currencies including GBP, and order a debit card for spending in 150+. All currency conversions are at the mid-market rate with no hidden fees.

FAQ

Can I get my UK state pension if I live in Germany?

Yes – you can usually receive your UK State Pension while living in Germany, provided you have enough qualifying UK National Insurance contributions. Your pension can be paid directly into either a UK or German bank account. You may also be able to combine UK and German contribution periods to help meet minimum eligibility requirements, although the amount paid by the UK is based only on your UK contribution record.

Will my UK state pension increase if I live in Germany?

Yes – if you live in Germany, your UK State Pension should continue to increase each year in line with the UK’s annual “triple lock” uprating rules. Germany is covered by the UK’s social security arrangements with the EU, so British pensioners living there are not subject to a “frozen” state pension.

What happens to my pension if I return to the UK?

If you return to the UK after living in Germany, your UK State Pension will continue to be paid as normal and you’ll keep any annual increases you received while abroad. If you transferred a private pension to an overseas scheme such as a QROPS, the pension would normally remain in that scheme unless you later decide to transfer it again, subject to the relevant rules and potential tax implications. It’s worth reviewing your tax position and pension arrangements if you move back permanently.