Relocating from Germany to the United States offers exciting new opportunities — whether for career advancement, family, or a lifestyle change. However, managing your finances across two very different tax and legal systems can be complex. The US financial system and tax rules differ greatly from Germany’s, so it’s essential to plan ahead to avoid double taxation, protect your assets, and ensure your investments remain compliant.
At Blacktower Financial Management, we specialise in cross-border financial planning for expatriates moving between Europe and the United States. With nearly four decades of experience, our advisers provide strategic guidance to help you transition smoothly — ensuring your wealth remains structured, compliant, and optimised for your new life in the US.
Understanding the US Tax System
The United States applies taxation on a worldwide income basis, meaning that once you qualify as a US tax resident under the Substantial Presence Test, you must declare and pay tax on income from all global sources — including employment, pensions, and investments held in Germany.
The US–Germany Double Taxation Agreement helps prevent you from paying tax twice on the same income, but compliance is key. You’ll still need to report foreign bank and investment accounts under FATCA (Foreign Account Tax Compliance Act) and FBAR (Foreign Bank Account Reporting) requirements. Blacktower’s experienced advisers can guide you through these reporting rules and ensure a compliant transition.
Reviewing German Investments and Savings
German investment products such as Fondsdepots, Rentenversicherungen, or Sparpläne are not typically recognised as tax-efficient under US law. Many European mutual funds are classified as PFICs (Passive Foreign Investment Companies) by the IRS, resulting in punitive taxation.
Before moving to the US, you should:
- Review and possibly restructure your investments to ensure they are US-compliant.
- Plan the timing of any sales or withdrawals to minimise exposure to capital gains tax.
- Consider switching to US-approved investment structures that align with your long-term goals.
Our advisers help you make these adjustments strategically — avoiding unnecessary tax consequences and maintaining portfolio performance.
Pensions and Retirement Income
If you have a German pension or retirement savings (such as a Riesterrente, Rürup-Rente, or company pension plan), these may be taxable in the US once you become resident there. The US–Germany tax treaty allows for coordination to ensure fair taxation, but reporting and timing are essential.
We can help you:
- Understand how your German pension will be treated under US tax law.
- Develop a long-term income strategy that balances US tax efficiency and currency exposure.
- Integrate your retirement planning into a global wealth management strategy.
Why Blacktower
At Blacktower, we offer bespoke financial advice for expatriates relocating from Germany to the US. Our cross-border expertise covers:
- Tax and residency planning.
- Investment restructuring and portfolio management.
- Pension and retirement income planning.
- Estate and inheritance strategies for dual jurisdictions.
With advisers experienced in both European and American financial systems, we ensure your wealth is protected and positioned for long-term success.
Speak to us today to arrange a confidential consultation with a Blacktower adviser and make your move from Germany to the US with complete financial confidence.