Moving to Germany: Expat Taxes, Visas, and Money Tips

Navigating the financial and logistical complexities of life as a U.S. expat in Germany requires proactive planning and a deep understanding of localized tax regulations. Jordan Vlastuin, a cross-border financial planner, highlights how strategic timing—such as liquidating assets or distributing inherited IRAs before establishing German tax residency—can prevent significant tax leakage due to Germany’s high marginal rates. The discussion emphasizes the importance of securing flexible visas, like the EU Blue Card, to decouple legal residency from specific employers. Managing currency risk is equally vital, with recommendations to maintain two to three years of local currency for near-term stability while keeping long-term investments in U.S. dollars. Additionally, while German corporate pensions offer favorable treaty treatment, private pension products often carry high commissions and U.S. tax complications. Success abroad ultimately hinges on building a localized professional network and maintaining an adaptable mindset toward cultural hurdles like the "build-your-own-kitchen" tradition.