Can I pay voluntarily into the statutory pension scheme to close gaps?

Yes. Voluntary contributions are possible for people who aren't subject to compulsory insurance, e.g. the self-employed or German citizens living abroad. For past periods there's the option of back-payment under certain conditions.

Do I get my German pension contributions back if I leave Germany?

No, not directly. Anyone who has paid contributions for less than five years (and comes from a country without an agreement) can apply for a refund under certain conditions. Anyone who reaches the five qualifying years is entitled to a German pension, even if they live abroad.

Do I have to pay tax in Germany if I have income from abroad?

Anyone resident in Germany is subject to unlimited tax liability. That means: all income worldwide is taxed in Germany, unless a double-taxation agreement provides otherwise. Germany has double-taxation agreements with most countries.

Am I covered by health insurance as a non-EU citizen if I work in Germany?

Yes. Anyone in employment subject to social insurance is automatically in the statutory health insurance, regardless of citizenship. The cover applies from the first working day.

Finances in Germany as an expat: pension, tax, insurance

You've moved to Germany and you're wondering: what have I built up in the statutory pension? What applies to Elterngeld? What does health insurance really cost? With concrete model figures.

Germany has one of the most complicated social security systems in the world. Anyone who has moved here faces an extra question: of everything I learned, worked, earned, and paid in before, what counts here?

The details below apply to people in employment subject to social insurance in Germany. The self-employed, civil servants, and people with certain residence permits are subject to different rules.

Statutory pension: do my earlier working years count?

The answer depends on where you come from. For EU countries, EU coordination of social security applies: contribution periods from other EU states can be counted toward the qualifying period. For many non-EU countries there are bilateral social security agreements.

EU nationals: employment periods from all EU states count toward the qualifying period. But the size of the pension is based only on the contributions paid in Germany.
Countries with a social security agreement: among others the USA, Canada, Australia, Türkiye, Morocco, Tunisia, South Korea, Japan, Brazil. Periods count toward the qualifying period, but not toward the size of the German pension.
Ukraine: there is no agreement in force (as of 2026). Ukrainian contribution years count neither toward the qualifying period nor toward the size of the pension.
Countries without an agreement: only the years paid in Germany count, for both the qualifying period and the size of the pension.

Anyone in the statutory pension scheme in Germany collects Entgeltpunkte (pension points). In 2026, one pension point corresponds to the average wage of €51,944 gross a year. From July 2026, each point is worth around €42.52 of monthly gross pension.

The pension gap for people who moved here: an example

Olena, 38, has been in Germany for four years and earns €38,000 gross. She comes from Ukraine, so her ten working years there don't count. What that means for her pension gap: she has 29 more working years in Germany ahead of her until 67.

Pension points per year at €38,000: around 0.73 (€38,000 ÷ €51,944)
Total pension points after 33 German years: around 24
Gross pension per month: 24 × €42.52 = around €1,020
After health and long-term care insurance (around 12.5%): around €893 net
Last net pay: around €2,150
Monthly gap: around €1,255

Elterngeld for people who moved here

Elterngeld is in principle available to everyone who lives in Germany and is employed or in training (§ 1 BEEG). EU citizens have the same entitlement as Germans.

For people without EU citizenship, the entitlement depends on the residence permit. The following permits usually qualify: settlement permit (Niederlassungserlaubnis), EU Blue Card, residence permit for employment (§§ 18 to 21 AufenthG), temporary protection (applies to Ukrainian nationals since 2022). Seasonal-work, student, and job-search permits don't qualify.

Health insurance: statutory or private?

Anyone in employment subject to social insurance in Germany earning a gross annual salary below the compulsory insurance threshold (Jahresarbeitsentgeltgrenze, 2026: €77,400) is automatically in the statutory health insurance (GKV, gesetzliche Krankenversicherung). In 2026 the contribution rate is 14.6 percent plus a fund-specific supplementary contribution (averaging around 2.9 percent), split equally between employee and employer.

Anyone earning above the threshold can switch to private health insurance (PKV, private Krankenversicherung). The PKV can be cheaper or more expensive than the GKV, depending on age, health, and the cover chosen. In old age, the PKV can become considerably more expensive.

Tax: a progressive system, six tax classes

Germany has a progressive tax system. The basic allowance (Grundfreibetrag) is €12,348 in 2026. Above that, the tax rate rises from 14 percent up to 42 percent (the top rate from around €69,879) and 45 percent (the wealth tax rate from around €277,826). On top of that comes the solidarity surcharge for higher incomes.

The six wage tax classes determine the monthly deduction. Married couples can choose tax class III/V or IV/IV. Single people without children pay tax class I. Single parents can apply for tax class II.

Unemployment benefit I: entitlement for people who moved here

Unemployment benefit I is available to everyone who meets the qualifying period: at least twelve months of employment subject to social insurance in the last 30 months (§ 142 SGB III). Citizenship plays no role. EU citizens, non-EU citizens with a work residence permit, and Ukrainian nationals with temporary protection are treated equally.

Miravel simulates your personal situation in Germany: pension gap, household take-home pay, Elterngeld, and protection, all based on the German tax and social insurance rules. Free, no account, right in your browser.