American Expat's Money Guide: Germany
Transfers, banking, and US + local taxes for Americans in Germany. Currency: EUR.
The quick answer
- US tax treaty
- Yes
- Totalization (SS) agreement
- Yes
- Special expat tax regime
- None
- Bank account as a US citizen
- Residency needed
Local top marginal income-tax rate (headline): 45%. Effective rates depend on income, residency status, and any special regime. Figures here are general and can change — verify against current law before relying on them.
Informational only — not financial, tax, or legal advice. Cross-border tax is fact-specific; confirm with a qualified cross-border CPA or adviser before acting. Some links are affiliate links — we may earn a commission at no extra cost to you. Full disclaimer.
Cost of living vs. New York City
Germany is about 31% cheaper overall
Typical 1-bed city-centre rent: $1,504/mo. Compare cost of living →
Approximate — Numbeo, NYC = 100, as of 2026-06.
1 Moving your money (USD → EUR)
USD→EUR is a high-liquidity major corridor; use a specialist FX provider for mid-market rates rather than a wire through a US bank.
See exactly what your amount costs across the mid-market rate, a typical bank, and a specialist — then send with the cheapest.
2 Banking as an American in Germany
In practice you need a German address and city-hall registration (Anmeldung) plus ID to open a standard local bank account. Fintechs (e.g. N26) are more flexible, but as a US person you must complete a FATCA self-certification (W-9/SSN) and some banks decline US citizens. Treat as 'registration generally required'.
Local banks generally accept US persons under the FATCA agreement, though some are cautious about the extra reporting.
3 Taxes — the part everyone gets wrong
The US side (you still file)
- You file a US return on worldwide income. FEIE or the Foreign Tax Credit usually prevents true double taxation — which one wins depends on your income and local rates.
- FBAR (FinCEN 114) if your foreign accounts top $10,000 combined at any point in the year.
- FATCA (Form 8938) may also apply above higher thresholds.
The Germany side
Germany has no special expat tax regime. Germany has no special inbound/impatriate tax regime; expats are taxed under standard resident rules. Limited ordinary reliefs exist (moving-cost lump sums, double-household costs) but these aren't an expat regime. A 5.5% solidarity surcharge and 8–9% church tax can apply on top of income tax.
Where this gets people
- German-domiciled funds, ETFs, and insurance-based savings (Riester/Rürup) are typically PFICs to the IRS, and the treaty's saving clause won't shield you — stick to US-domiciled investments.
- Health insurance is mandatory from day one of residence, and you generally need your Anmeldung (city registration) and a German address before a normal bank will open an account.
- You generally can't open a local bank account until residency is sorted — arrange a transfer/multi-currency account for the gap.
- A "special regime" headline rate is not your effective rate — eligibility and exclusions matter a lot.
- State taxes can follow you abroad depending on the US state you left — don't assume you're done with them.
Cross-border tax is fact-specific and the penalties are real. A US-expat tax specialist handles FEIE/FTC, FBAR, and FATCA correctly.
Get expat taxes done with Bright!Tax →4 Investing & brokerage
US brokers sometimes drop customers with a non-US address. A broker that explicitly supports non-resident Americans is the standard fallback. Beware buying local (non-US) funds — PFIC (Passive Foreign Investment Company) rules make them a US tax nightmare.
Open an account with Interactive Brokers →5 Healthcare & insurance
Legal residents generally gain access to Germany's public health system, but there's usually a gap before residency and coverage kick in. Many new arrivals and nomads bridge the gap with international coverage.
See SafetyWing coverage →6 Common residency routes
Your residency route determines your tax residency and bank access — they're connected.
Frequently asked questions
Do Americans living in Germany still have to file US taxes?
Yes. US citizens file with the IRS on worldwide income no matter where they live. The US–Germany tax treaty and tools like the Foreign Earned Income Exclusion (FEIE) or the Foreign Tax Credit usually prevent true double taxation, but you still must file. This is general information, not tax advice.
Do I need to file an FBAR if I move to Germany?
If your foreign financial accounts add up to more than $10,000 at any point in the year, you generally must file an FBAR (FinCEN Form 114). Many expats also have FATCA (Form 8938) obligations. Penalties for missing these are steep — confirm your situation with a cross-border professional.
What's the cheapest way to move money to Germany?
For a relocation lump sum, the cost is almost entirely the exchange-rate spread, not the visible fee. Banks commonly bury 1–3% in the rate. Compare your specific amount with the transfer cost tool before sending.
Can I keep my US brokerage account after moving to Germany?
Some US brokers restrict or close accounts once you have a non-US address. A broker that explicitly supports non-resident Americans is the common fallback. Don't change your address until you've confirmed your broker's policy.
Data last verified 2026-06-03. Primary source: official reference.
Informational only — not financial, tax, or legal advice. Cross-border tax is fact-specific; confirm with a qualified cross-border CPA or adviser before acting. Some links are affiliate links — we may earn a commission at no extra cost to you. Full disclaimer.