Americans Moving to Germany

The numbers

FEIE & US taxes

The FEIE applies in Germany — exclude up to ~$130,000 of earned income from US taxes. However, German progressive tax rates (14%–45% plus solidarity surcharge) are generally higher than equivalent US rates, so most Americans end up owing nothing extra to the IRS after applying the Foreign Tax Credit. Filing in both countries is mandatory. The US-Germany Tax Treaty prevents double taxation. Self-employment tax (US side) is not covered by the FEIE — only income tax. Get a Steuerberater (tax advisor) who knows US-German cross-border situations; they exist in Berlin, Munich, and Frankfurt.

Full FEIE explainer →

Social Security

The US-Germany Totalization Agreement prevents double Social Security taxation. You'll contribute to the German pension system (Rentenversicherung) while working there. You can combine US and German credits for eligibility in either system. US Social Security is payable in Germany via direct deposit. Germany does not tax US Social Security for residents who are also US citizens (treaty provision, but verify with your Steuerberater). German pension claims vest after 5 years of contributions.

Healthcare gap

Medicare stops at the border. Germany's healthcare is mandatory and excellent. If your Blue Card salary is under ~€69,300/yr (2026), you must join a public Gesetzliche Krankenversicherung (TK, AOK, or Barmer are popular). Above that threshold, you can choose private insurance (PKV) — lower premiums when young, but costs rise with age and you can't easily switch back. Public insurance covers your non-working spouse and children for free. Private does not. Most Americans with families choose public. Budget €400–€500/mo for public health + nursing care insurance (split with employer).

Full Medicare abroad guide →

Banking & FATCA

Germany is surprisingly painful for American banking. Deutsche Bank and Commerzbank accept US citizens but require in-person appointments, FATCA declarations, and your Anmeldung (registration) confirmation. N26 does not accept US tax residents. Wise gives you a DE IBAN immediately — use it for initial salary deposits while your bank account is being processed (2–4 weeks). You'll need your Anmeldung, passport, Aufenthaltstitel (residence permit), and tax ID (Steuer-ID). Keep Schwab US for ATM access. FBAR reporting applies to all German accounts over $10,000 aggregate.

Full FATCA guide →

Your US dollars

1 USD buys about 0.86 EUR, and Germany's cost of living runs 14–30% lower than the US — wildly city-dependent. Berlin is dramatically cheaper than Munich, which is dramatically cheaper than San Francisco, which is dramatically cheaper than selling your organs. Your $200K in savings buys roughly $230K–$260K of American-equivalent lifestyle. The real value is in rent: Berlin 1BRs run €800–€1,200/mo in decent neighborhoods, which would get you a closet in most major US cities. If you're earning USD remotely and living in Berlin or Hamburg, you'll feel the difference. Munich? Less so.

Buying property

Fully open to Americans — no residency, visa, or physical presence required. You can theoretically buy a Berlin apartment from your couch in Ohio via power of attorney. Non-resident mortgages require 20–40% down (vs 10–20% for residents), with rates of 3.5–5% for 10–15 year fixed terms. The hidden killer: purchase costs add 8–15% on top of the price (transfer tax, notary, agent commission, land registry). On a €300K apartment, that's €24K–€45K in fees you'll never see again. FATCA makes smaller banks reluctant; Deutsche Bank and Commerzbank are more accommodating. Your FICO score is irrelevant — Germany uses SCHUFA credit scoring. No golden visa exists; business investment residence requires €250K+ and creating 5 jobs. Berlin apartments: ~€5,800/sqm.