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Keeping a German bank account when emigrating: How to secure your benefits!
You are planning your emigration and wondering if you can keep your German bank account? This is often possible and offers many benefits. Be sure to inform your bank about your new tax situation to avoid unwanted account closures. Need support in clarifying your financial situation before emigrating? Contact us for personalised advice.
The topic short and concise
You are planning your emigration and wondering if you can keep your German bank account? This is often possible and offers many benefits. Be sure to inform your bank about your new tax situation to avoid unwanted account closures. Need support in clarifying your financial situation before emigrating? Contact us for personalised advice.
You are planning your emigration and wondering if you can keep your German bank account? This is often possible and offers many benefits. Be sure to inform your bank about your new tax situation to avoid unwanted account closures. Need support in clarifying your financial situation before emigrating? Contact us for personalised advice.
You are planning your emigration and wondering if you can keep your German bank account? This is often possible and offers many benefits. Be sure to inform your bank about your new tax situation to avoid unwanted account closures. Need support in clarifying your financial situation before emigrating? Contact us for personalised advice.
Learn how to keep your German bank account even after emigrating, what advantages this brings, and what you need to be aware of. Avoid account closures and ensure access to your finances!
Many expatriates face the question of whether they should keep their German bank account. The answer is often yes, because maintaining a German bank account upon moving abroad offers numerous advantages. It allows you to maintain financial ties to Germany, benefit from the German deposit guarantee, and enjoy flexibility with foreign currency accounts. However, there are also challenges and risks you should consider. We at GoMovin assist you in staying informed and making the best decision for your individual situation.
Maintain Financial Ties to Germany
A German bank account can make your life considerably easier if you continue to have financial obligations in Germany. This particularly applies to:
Income and Expenses
If you continue to receive income from Germany, such as rental income or freelance work, a German bank account is essential. It allows you to manage these earnings without hassle. Settling bills in Germany, such as insurance premiums or subscriptions, is also significantly simplified with a German account. Moreover, you can conveniently receive payments from Germany, for example from family or friends. This is particularly important if you continue to receive financial support from your relatives or occasionally want to send money to them.
Utilising the German Deposit Guarantee
Another important benefit is the German deposit guarantee. This offers you:
Security up to 100,000 EUR
The German deposit guarantee protects your balance up to an amount of 100,000 EUR per bank. This provides you with protection against bank insolvency and gives you confidence in the German banking system, even if you live abroad. In the event of a bank failure, you will be reimbursed up to this limit. This is a reassuring feeling, especially in economically uncertain times. Further information on managing accounts abroad can be found here.
Flexibility with Foreign Currency Accounts
Some German banks offer you the opportunity to hold foreign currency accounts. This can be particularly interesting if you:
EUR, USD, CHF
By maintaining foreign currency accounts in EUR, USD, or CHF, you can hedge against inflation and diversify your assets. This is especially sensible if you plan to invest in another currency in the future or make expenditures in a different currency. A well-diversified portfolio can help you protect and grow your wealth in the long term. We at GoMovin are happy to advise you on how to best structure your assets.
Avoid closing accounts: Challenges and risks in maintaining them
While maintaining a German bank account offers many advantages, there are also challenges and risks you should be aware of. One of the biggest challenges is:
Account Termination by Banks
Some banks terminate accounts as soon as they learn of your move abroad. This is mainly due to:
Address Change and Tax Status
If you move abroad, you are obliged to inform your bank. The notification obligations when moving abroad may change your tax status, which can lead to the bank terminating your account. This is because banks are required to comply with CRS regulations (Common Reporting Standard). These regulations are intended for the automatic exchange of information on financial accounts for tax purposes and aim to prevent tax evasion. Therefore, it is important to inform your bank about your move to avoid account termination. Further information on this topic can be found at auswandern-handbuch.de.
Tax Aspects
Another important aspect is the tax implications. This specifically concerns:
Extended Limited Tax Liability
If you emigrate to a low-tax country (e.g. Dubai), extended limited tax liability may apply. This means that your domestic assets continue to be taxed in Germany. Therefore, it is advisable to seek tax advice before emigrating to avoid unexpected tax payments. We at GoMovin work with experienced tax advisors who can provide you with comprehensive advice. You can also find more information in our article on emigrating to Dubai.
Credit Rating When Returning to Germany
Your credit rating may also be affected by emigration, especially if you:
Basic Account as a Last Resort
If you return to Germany after emigrating, it may be difficult to open a regular bank account. This is because your credit rating may have suffered. In this case, you often only have a basic account as a last resort. This can make it more difficult to obtain credit and limit your financial options. Therefore, it is advisable to inform yourself about the possible impact on your credit rating before emigrating and, if necessary, take measures to preserve it. Our relocation assistants can also support you in this regard.
Expat-friendly direct banks: DKB, N26 and Comdirect compared
Not all banks are equally suitable for expatriates. Particularly recommended are:
Direct banks with expat-friendly services
Comdirect, DKB, and N26 offer special services for expatriates. These include:
Simple account opening, worldwide cash withdrawal, multilingual support
These direct banks stand out for their simple account opening, the ability for worldwide cash withdrawal, and multilingual support. This is especially important if you are in a foreign-speaking country and need assistance. Additionally, these banks often offer attractive terms and low fees. Therefore, a comparison of the different offers is worthwhile. Our article on health insurance abroad might also be of interest to you.
DKB
DKB offers you:
Free worldwide cash withdrawal with Visa debit card
DKB enables you to withdraw cash worldwide for free with the Visa debit card. This is particularly convenient if you travel frequently or are in countries where cash still plays an important role. In addition, DKB is suitable for EU, Norway, Liechtenstein or Iceland residents. DKB also offers a basic account in case you have difficulty opening a regular account. More information about DKB can be found on the DKB website.
N26
N26 offers you:
Basic account on a credit basis
N26 offers a basic account on a credit basis, which means you can only spend the money that is in your account. This helps you control your spending and avoid debt. Furthermore, N26 offers a quick online account opening and is accessible from most countries (except India and the USA). N26 also provides a free debit card with which you can make payments worldwide. More information about N26 can be found here.
Comdirect
Comdirect offers you:
Interest on overnight money
Comdirect offers you interest on overnight money, meaning you earn interest on your balance. This is particularly attractive if you want to make short-term investments. Additionally, Comdirect offers attractive terms for short-term investments and a wide range of financial products. Comdirect also provides a free credit card with which you can make payments worldwide. Visit the Comdirect website for more details.
Secure tax advantages: Managing accounts before emigrating
Before emigrating, you should consider how to manage your existing accounts. This is particularly relevant for:
Private accounts and portfolios
For private accounts and portfolios, it is important that you:
Inform the bank about your new foreign tax residence
You should inform your bank about your new foreign tax residence to avoid account closures and ensure compliance with CRS reporting requirements. Otherwise, there may be issues with the tax authorities. It is advisable to seek tax advice before emigrating to take all necessary steps. We at GoMovin can help you stay on top of things and make the right decisions. Further information on deregistering your residence can be found at heydubai.de.
Business accounts
For business accounts, you should focus on:
Separate usage for German and foreign business activities
You should use your business accounts separately for German and foreign business activities to avoid tax disadvantages. If you decide to cease your German business activities, you should liquidate the account. Failure to do so might lead to problems with the tax authorities. It is advisable to seek tax advice before emigrating to take all necessary steps. Avoid using a German business account for foreign transactions to prevent German tax authorities from claiming these revenues, as advised by easydigitax.de.
Opening additional accounts and portfolios
It may be sensible before emigrating:
Both in Germany and abroad
It can make sense to open additional accounts and portfolios both in Germany and abroad to ensure flexibility in wealth management. Try to transfer these to your new country of residence. This can help you structure your assets optimally and save taxes. We at GoMovin are happy to advise you on how to manage your assets optimally. Also, our article on retirement abroad might be of interest to you.
Secure German IBAN: Opening an Account with a Foreign Company
Even with a foreign company, you can open a German bank account. This offers you:
Benefits of a German Account for Foreign Companies
A German account provides you:
German Deposit Protection and German IBAN
A German account provides you with German deposit protection and a German IBAN. This builds trust with German customers and facilitates transactions. Many German customers prefer to make payments to a German account. Therefore, a German IBAN can give you a competitive advantage. We at GoMovin help you find the right bank for your needs.
Challenges in Opening an Account
However, there are also:
Banks are Often Reluctant
Many banks are reluctant to open accounts for foreign companies. Therefore, careful selection of the bank and preparation of the necessary documents is important. It is advisable to find out in advance about the requirements of different banks and to gather all necessary documents. We at GoMovin support you in the preparation and help you find the right bank.
Risk of Account Termination: Consequences of Not Reporting Emigration
If you do not report your emigration, you risk:
Risk of Account Closure
Failing to report your emigration may lead to account closure, as it breaches the:
Breach of Bank's Terms and Conditions
You are in violation of the bank’s terms and conditions. Banks are obliged to report to the financial authorities and must ensure all customer data is accurate. Not reporting your emigration may lead to avoiding allegations of money laundering. It is therefore crucial that you inform your bank about your move. We at GoMovin assist you in completing all the necessary formalities.
Legal Consequences
Failure to report can also:
Possible Fines for Incorrect Information
Failure to report may result in possible fines for incorrect information. You have a legal obligation to provide the bank with accurate information and must provide all relevant information truthfully. Otherwise, there could be legal consequences. Therefore, it is advisable to seek legal advice before emigrating to undertake all necessary steps.
Utilising Local Alternatives: Accounts in Your New Country of Residence
In addition to maintaining a German bank account, there are also alternatives. One of them is:
Accounts in the new country of residence
An account in the new place of residence allows you to:
Adapt to local circumstances
You adapt to local conditions and benefit from the familiarity with the banking system. Additionally, you avoid fees for international transfers. A local account can significantly ease your life abroad. We at GoMovin help you find your way in your new country of residence.
International Accounts
Another alternative is:
Flexibility and worldwide availability
International accounts provide you with flexibility and global availability. They are suitable for frequent travellers and give you the ability to manage your money in different currencies. However, it's important to compare the conditions of various providers to find the best offer. We at GoMovin are happy to advise you on which type of account is best suited to your needs.
Find an individual solution: Weighing the pros and cons of the German bank account
Maintaining a German bank account when moving abroad can be sensible, but it is important to weigh the pros and cons. Here are some key points you should consider:
Maintaining a German bank account can be sensible
It is important to:
Weigh the pros and cons
You should consider your individual situation and, if necessary, seek professional advice. There is no one-size-fits-all answer. The decision depends on your personal needs and goals. We at GoMovin help you make the best decision for your individual situation.
The importance of transparent communication with the bank
The crucial thing is:
Avoiding problems and misunderstandings
You should maintain open and honest communication with your bank to avoid problems and misunderstandings. Provide all relevant information truthfully and inform your bank of any changes in your personal circumstances. This is the only way to ensure your account functions smoothly and you can take full advantage of it. Our GoMovin administrative experts are happy to support you in communication with banks and authorities.
Government grants for moving services offer an excellent opportunity to make your international move less stressful and more cost-effective. Whether it's a complete move or just the relocation of a few possessions, the available funding programs and tax benefits make moving abroad more attractive and financially attainable.
With a variety of funding programs and tax incentives, there are numerous ways to reduce the costs of your move. GoMovin offers you comprehensive advice and support in planning your move, fulfilling all necessary formalities, navigating the application process, and avoiding potential problems.
By choosing GoMovin, you are investing in a smooth transition to your new life abroad. You not only reduce your moving costs and secure professional support, but you can also focus on the important things: your new home and your new career.
Now is the perfect time to explore the funding opportunities for your move. Contact us today to start your individual consultation and submit your funding application quickly and easily. Visit our Contact Page to learn more.
Further useful links
FAQ
What are the benefits of keeping a German bank account when emigrating?
Maintaining your account allows you to retain financial links to Germany, benefit from the German deposit protection up to 100,000 EUR, and enjoy the flexibility of foreign currency accounts.
Can banks close my German account if I move abroad?
Yes, some banks may close accounts once they learn of your move, particularly if you relocate to a non-EU country. This is due to compliance requirements (CRS) and changes in your tax status. Inform your bank in good time.
Which direct banks are particularly expat-friendly?
Comdirect, DKB, and N26 offer special services for emigrants, such as easy account opening, worldwide cash withdrawal, and multilingual support.
What is extended limited tax liability and how does it affect me as an emigrant?
If you emigrate to a low-tax country (e.g., Dubai), extended limited tax liability may apply, meaning your domestic assets may still be taxed in Germany. Seek tax advice.
What happens to my credit rating if I return to Germany after emigrating?
Your credit rating may suffer, making it difficult to open a regular bank account. A basic account might be the only option. Plan ahead and learn about the impact on your credit rating.
Should I inform my bank about my move abroad?
Yes, the obligation to notify the bank of a move abroad is important. Otherwise, you risk account closure and legal consequences. Inform your bank of your new tax residence.
Can I open a German bank account with a foreign company?
Yes, this is possible and provides you with a German IBAN and German deposit protection. However, many banks are cautious. Prepare all necessary documents carefully.
What alternatives are there to keeping a German bank account?
You could open an account in your new country of residence or use an international account. Compare terms from different providers to find the best solution for your needs.
