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Emigrate and keep your bank account: How to secure your finances!
Many expatriates face the question of whether to keep their German bank account. It can offer advantages but also carry risks. Learn how to make the most of your account and discover what alternatives are available. Do you need personalised advice? Contact us for a personal analysis of your situation.
The topic short and concise
Many expatriates face the question of whether to keep their German bank account. It can offer advantages but also carry risks. Learn how to make the most of your account and discover what alternatives are available. Do you need personalised advice? Contact us for a personal analysis of your situation.
Many expatriates face the question of whether to keep their German bank account. It can offer advantages but also carry risks. Learn how to make the most of your account and discover what alternatives are available. Do you need personalised advice? Contact us for a personal analysis of your situation.
Many expatriates face the question of whether to keep their German bank account. It can offer advantages but also carry risks. Learn how to make the most of your account and discover what alternatives are available. Do you need personalised advice? Contact us for a personal analysis of your situation.
Are you planning to emigrate and wondering if you can keep your German bank account? Learn about the benefits it offers, what to watch out for, and which banks have the best conditions for expatriates.
Are you planning to emigrate and wondering if you can keep your German bank account? That's a valid question, as a German bank account can offer you many advantages even abroad. At GoMovin, we understand that moving abroad involves many changes. Therefore, we want to help you manage your finances optimally. Keeping a German bank account can help you simplify financial transactions in Germany and maintain access to the German deposit protection. However, there are also challenges and risks that you should consider.
Advantages of a German bank account abroad
A German bank account offers several significant advantages when you are abroad. One of the most important is the simplification of financial transactions in Germany. For instance, if you earn rental income from property in Germany, you can easily have it transferred to your German account. Insurance payments or contract handling are also simpler if you have a German account. Another crucial point is the access to German deposit protection. This protects your assets up to 100,000 euros per depositor. This can provide you with an additional sense of security, especially if you are keeping your money in a country with a less stable economic situation.
Challenges and risks
However, there are also challenges and risks associated with maintaining a German bank account abroad. One of the biggest challenges is the possible account closure by banks. This can have various reasons. On the one hand, there are international information exchange agreements (CRS) that require banks to share information about their customers with tax authorities. On the other hand, banks face increased administrative burdens when managing customers who are not tax residents in Germany. If you move to a low-tax country, this can lead to extended limited tax liability. Therefore, it's important to inform yourself about the tax implications in advance. For more information on this topic, you can refer to easydigitax.de.
Reporting a Change of Residence: How to Avoid Tax Pitfalls
When managing your German bank account after relocation, legal and tax aspects play a crucial role. It is essential to be aware of your reporting obligations and understand the tax implications to avoid unpleasant surprises. GoMovin recommends addressing these topics early to safeguard your finances optimally. Compliance with the reporting obligations and the Common Reporting Standard (CRS) is crucial to avoid legal issues. Notify your bank promptly about your change of residence to ensure your data is accurate and that you comply with applicable laws.
Reporting Obligations and CRS
The disclosure of change of residence is an important step to avoid problems with your bank. Inform your bank as soon as possible about your move abroad. This is not only a matter of courtesy but also a legal obligation. By notifying the bank early, you can ensure that your account is not frozen, and you continue to have access to your finances. The bank is required to pass your data on to tax authorities. Failing to report your change of residence can lead to issues. Another critical point is avoiding issues with the anti-money laundering law. Banks are obliged to verify their customers' identities and report suspicious transactions. If you don't notify your bank about your residence change, it may consider you suspicious and freeze your account. Further information on this topic can be found on the European Consumer Centre's website.
Tax Implications
Keep an eye on the tax implications as well. The capital gains tax is a significant aspect to consider. By providing written notification to your banks and brokers, you can avoid capital gains being taxed in Germany. Instead, your capital gains will be taxed in your new country of residence, which could potentially save you taxes. Also, be aware of the limited tax liability, especially if moving to a low-tax country. In this case, you may still be tax-liable in Germany even if you're no longer residing there. It is advisable to consult a tax advisor to understand the tax consequences of your move and plan your finances optimally. Our insurance experts are happy to assist you with this.
Direct banks stand out: How expats can find the right account model
When choosing the right bank for expats, various factors come into play. Online banks often offer attractive terms, but it is important to consider individual needs and requirements. At GoMovin, we help you find the best solution for your financial situation. A comparison of online banks like DKB, N26, and Comdirect can help you find the suitable account model. These banks often offer favourable fee structures and flexible conditions for managing accounts abroad. Pay attention to the conditions for fee-free account management and check whether the bank offers video identification for opening an account from abroad.
Comparison of Online Banks
DKB, N26, and Comdirect are popular options for expats. DKB and Comdirect often require a minimum monthly salary deposit of 700 euros to maintain free account management. N26 offers a basic account without a mandatory minimum salary deposit. It is important to carefully review the respective terms to ensure the chosen account model meets your needs. The video identification for opening an account from abroad is another important factor. Many online banks offer this option to simplify the account opening process. However, specific procedures can vary depending on the bank. Therefore, make sure you thoroughly research the respective bank's approach in advance. Further information on the various banks and their offers can be found on rheinplan.finance.
Criteria for Choosing the Right Bank
When choosing the right bank, you should consider various criteria. The fee structure is an important factor. Pay attention to account management fees, fees for cash withdrawals abroad, and fees for transfers. The conditions for managing accounts abroad are also crucial. Check if the bank has any restrictions on account management abroad and whether you can easily notify them of your change of residence. The availability of video identification is another key point, especially if you wish to open an account from abroad. Compare the different offers and choose the bank that best suits your needs. Our relocation experts are happy to advise you on choosing the right bank.
Seamless Account Management: Tips for Using Your German Account Abroad
Managing a bank account abroad requires some special measures to function smoothly. Clear communication with the bank, using online banking, and avoiding unnecessary fees are crucial. At GoMovin, we provide practical tips on how to make the most of your German bank account abroad. The written notification of a change of residence is essential to avoid issues with your bank. Inform your bank as early as possible about your move abroad to ensure your details are correct and you comply with applicable laws.
Communication with the Bank
The regular review of account conditions is another important point. Banks change their conditions from time to time. Therefore, it is important to regularly check whether the current conditions still meet your needs. Pay particular attention to changes in fees and interest rates. The use of online banking offers you the ability to manage your account conveniently from anywhere in the world. Ensure that you have secure access to your account and that you monitor your transactions regularly. This helps you to avoid fraud and keep track of your finances. Our guides on health insurance abroad could also be helpful.
Avoiding Fees
The optimisation of account usage can help you avoid fees. Make sure that you do not overdraw your account and that you deposit money regularly to avoid maintenance fees. Comparing various bank offers can also help you save on fees. There are many banks that have special offers for expatriates. Compare different offers and choose the bank that best suits your needs. Through careful planning and mindful account management, you can ensure that you make the most of your German bank account abroad.
International Alternatives: Flexibility through foreign accounts and FinTech solutions
Besides keeping a German bank account, there are alternative options available for expatriates. International bank accounts and FinTech solutions offer flexibility and can be a sensible addition or alternative. At GoMovin, we help you weigh up the pros and cons of the different options. Opening a local account in your new country of residence can be wise to simplify local transactions and save on fees. Find out about the various banks and account models in your new country of residence and choose the option that best suits your needs.
International Bank Accounts
International bank accounts allow you to manage your money in different currencies and benefit from flexible transfer options. However, fees for international bank accounts may be higher than for local accounts. Carefully weigh the advantages and disadvantages before deciding on an international bank account. Transferring funds from Germany can incur high fees. Explore the various transfer options and choose the most cost-effective one. FinTech solutions like Wise (TransferWise) and Revolut often offer cheaper alternatives for international transfers. Our information for retirees moving abroad might also be relevant.
FinTech Solutions
FinTech solutions like Wise (TransferWise) and Revolut offer you cost-effective alternatives for international transfers and managing money in different currencies. These providers utilize innovative technologies to reduce the cost of international transactions. However, you should inform yourself about the respective conditions and fees in advance. These solutions can effectively complement your German bank account or serve as an alternative, especially if you need to transfer money abroad regularly. By using FinTech solutions, you can save on fees and manage your finances more flexibly.
Adjust contracts and insurance: How to avoid unnecessary costs when emigrating
When emigrating, it's important to review your existing contracts and insurances to adjust or cancel them if necessary. This can help you avoid unnecessary costs and ensure that you're adequately covered abroad. We at GoMovin assist you with terminating or adjusting contracts. The termination or adjustment of contracts such as rental agreements, insurances, and subscriptions is an essential step in preparing for emigration. Review your existing contracts and cancel those you no longer need abroad.
Termination or Adjustment of Contracts
For credit agreements, there are various options for termination or adjustment. Inform yourself about your rights and obligations and check if you can terminate the credit contract prematurely. With Riester pensions and building society savings contracts, you should be aware of the consequences of termination. Typically, you must repay state allowances and tax benefits if you cancel the contract prematurely. Weigh the pros and cons carefully before making a decision. Our information for pensioners in Switzerland might be of interest to you.
Specific Contracts in Detail
There are also important considerations for insurances. Health insurance is a crucial aspect. Find out about the health insurance requirements in your new country of residence and take out new health insurance if necessary. The liability insurance covers damages you cause to others. Check whether your existing liability insurance is valid abroad or if you need to take out new liability insurance. The household insurance protects your belongings. Check whether your existing household insurance is valid abroad or if you need to purchase new household insurance. Car insurance is required if you own a car. Cancel your existing car insurance and take out new car insurance in your new country of residence. The term life insurance protects your family in the event of death. Check if your existing term life insurance is also valid abroad or if you need a new term life insurance. Further information on this topic can be found at evz.de.
Financial Preparation: Checklist for Expats Secures Your Future
Careful financial preparation is crucial for a successful start to your new life abroad. At GoMovin, we have compiled a checklist to help you consider all important aspects. Informing your bank about the change of residence is a key step to avoid issues with your account. Notify your bank as early as possible about your move abroad to ensure your details are correct and you comply with applicable laws.
Before Emigrating
Reviewing and adjusting existing contracts is another important point. Check your existing contracts and cancel those you will no longer need abroad. Opening additional accounts (domestic and foreign) can be beneficial for managing your finances more flexibly. If necessary, open a local account in your new country of residence or an international bank account. It's advisable to set up additional personal accounts and deposits before emigrating, both in Germany and abroad, and attempt to transfer these to your new residence after emigrating, as recommended on easydigitax.de.
After Emigrating
Regularly reviewing account movements is important to prevent fraud and keep track of your finances. Check your account statements regularly and report any suspicious transactions to your bank immediately. Adjusting your tax return is necessary to ensure you comply with current tax laws. Familiarize yourself with the tax laws in your new country and adjust your tax return accordingly. Using online banking for convenient account management allows you to manage your account from anywhere in the world. Ensure you have secure access to your account and monitor your transactions regularly. With this checklist, you are well-prepared to manage your finances optimally when emigrating. If you plan to emigrate and wish to keep your bank account, thorough preparation is essential. Our experts at GoMovin are happy to assist you every step of the way, making your move as easy as possible.
Further useful links
The Europäische Verbraucherzentrum provides information and support for consumers on cross-border issues within the EU.
The Deutsche Bundesbank provides information on deposit protection in Germany, which safeguards your funds up to 100,000 euros.
The Die Deutsche Kreditwirtschaft offers information on banking and international payments.
The Bundesfinanzministerium provides information on tax aspects of emigrating.
FAQ
Which advantages does a German bank account offer after emigration?
A German bank account simplifies financial transactions in Germany (e.g., rental income) and offers access to the German deposit protection scheme (up to 100,000 euros per investor).
Can the bank close my account if I move abroad?
Yes, banks can close accounts if they become aware of your change of residence, due to international exchange of information agreements (CRS) and increased administrative burden. Therefore, inform your bank as soon as possible.
Which direct banks are suitable for expats?
DKB, N26 and Comdirect often offer good terms for expats. DKB and Comdirect usually require a minimum income (around 700 euros), while N26 offers a basic account without a minimum income requirement.
How can I avoid capital gains tax in Germany after emigration?
Inform your banks and brokers in writing about your new residence to avoid capital gains being taxed in Germany. Taxation will then occur in your new country of residence.
What must I consider when terminating Riester pensions and building society contracts?
When terminating Riester pensions and building society contracts, you usually have to repay state subsidies and tax benefits. Weigh the pros and cons carefully.
Which insurances must I adjust or cancel when emigrating?
Check your health insurance, liability insurance, household insurance, and car insurance. Adjust these to the conditions in your new country of residence or cancel them if necessary.
How can I make optimal use of my German bank account abroad?
Inform your bank in writing about your change of residence, use online banking, and be mindful of fees. Compare different banking offers to save costs.
What alternatives are there to a German bank account abroad?
International bank accounts and FinTech solutions like Wise (TransferWise) and Revolut offer flexible alternatives for international transfers and managing money in different currencies.
