Germany is one of Europe’s most attractive destinations for British expatriates. With a strong economy, world-class healthcare, and an exceptional quality of life, it’s no wonder many UK nationals choose to build their careers or retire there. However, while the move may be smooth, managing your UK pension from Germany requires careful thought and professional advice.
A Self-Invested Personal Pension (SIPP) can be one of the most effective and flexible ways to manage your UK pension from abroad. It allows you to retain control of your investments, maintain the protection of the UK’s regulatory framework, and coordinate your pension income with Germany’s tax system.
What Is a SIPP?
A Self-Invested Personal Pension (SIPP) is a UK-registered personal pension that allows you to make your own investment decisions, rather than being restricted to a small selection of funds chosen by a pension provider.
Within a SIPP, you can hold a wide range of assets, including:
- Stocks and shares
- Bonds and gilts
- Investment funds and ETFs
- Cash deposits
- Commercial property
Because SIPPs are regulated by the UK Financial Conduct Authority (FCA), they are subject to strong investor protections and transparency requirements. This makes them particularly attractive to expatriates who want to retain confidence in their pension’s security while living abroad.
Why SIPPs Are Popular with UK Expats in Germany
For many British nationals living in Germany, keeping their pension in the UK through a SIPP offers a balance of flexibility, control, and regulatory protection that few other structures can match.
1️⃣ Retain Control of Your Investments
A SIPP allows you to build a tailored investment strategy aligned with your goals, time horizon, and risk tolerance. You can diversify your pension across global markets, balancing risk and growth — or work with an adviser to have it professionally managed.
2️⃣ Consolidate Multiple Pensions
If you’ve had several employers in the UK, you may have accumulated multiple small pension pots. A SIPP allows you to combine them into one easily managed plan, reducing administration, improving oversight, and often lowering fees.
3️⃣ Maintain UK Regulation and Protection
While you live in Germany, your SIPP remains under UK regulation, with funds typically held in FCA-approved custodians. This ensures a high level of security and legal protection, even when managed from abroad.
4️⃣ Flexible Access to Your Pension
From the age of 55 (rising to 57 in 2028), you can start to access your pension through flexible drawdown. This means you can:
- Take up to 25% of your pension tax-free (under UK rules).
- Withdraw income as and when you need it.
- Leave the remainder invested to continue growing.
For expatriates, this flexibility makes it easier to coordinate pension income with other sources — such as rental income, investments, or German pensions.
5️⃣ Multi-Currency Flexibility
Many SIPP providers offer multi-currency options, enabling you to hold and withdraw funds in both GBP and EUR. This is particularly valuable for UK expats in Germany who receive income in euros but still maintain assets in sterling.
SIPPs and Taxation in Germany
Taxation is one of the most important considerations when managing your UK pension from abroad. Fortunately, the UK–Germany Double Taxation Agreement (DTA) prevents pension income from being taxed twice.
Under the treaty:
- UK private pensions, including SIPPs, are taxable only in Germany, not in the UK.
- UK pension providers will typically pay income gross (without UK tax deducted).
- You’ll pay income tax in Germany according to local rules.
However, Germany’s taxation of pension income can be complex. The portion of your pension that’s taxable depends on several factors, including when you began drawing it and your residency status.
It’s therefore crucial to seek advice from a cross-border financial adviser familiar with both UK pension law and German tax regulations to ensure your income strategy is efficient and compliant.
SIPPs vs. QROPS: Which Is Better for UK Expats in Germany?
While QROPS (Qualifying Recognised Overseas Pension Schemes) are another option for expatriates, many UK expats in Germany prefer SIPPs for their simplicity, regulatory protection, and familiarity.
| Feature | SIPP | QROPS |
|---|---|---|
| Regulation | UK-based and FCA-regulated | Overseas jurisdiction (HMRC-recognised) |
| Currency | GBP (multi-currency options often available) | EUR, GBP, or USD depending on jurisdiction |
| Ideal For | UK expats retaining UK ties or considering return | Long-term expats with no future UK plans |
| Taxation | Income taxed in Germany under DTA | Taxation depends on QROPS jurisdiction |
| Inheritance Tax | Usually outside UK IHT | Often outside UK IHT, depending on structure |
For most British expatriates in Germany, a SIPP provides the right combination of security, control, and cross-border flexibility — without the complexity or cost of transferring to an offshore scheme.
The Role of Professional Financial Advice
Managing a pension across borders can be complicated — particularly when dealing with differing regulations, tax rules, and currencies. Working with a specialist cross-border financial adviser ensures your pension is managed efficiently and in line with your residency status.
At Blacktower Financial Management, we’ve been advising expatriates across Europe since 1986, helping clients in Germany and beyond to:
- Review and consolidate UK pensions into SIPPs
- Structure retirement income tax-efficiently
- Manage multi-currency investment portfolios
- Plan their estate and protect wealth for future generations
With local and international expertise, our advisers make cross-border pension management simple, compliant, and effective.
Secure Your Pension and Your Future in Germany
A SIPP gives you the control, flexibility, and reassurance needed to enjoy your life in Germany without worrying about your financial future. Whether you’re still building your retirement savings or drawing income from them, the right pension strategy can help you make the most of your wealth — wherever you call home.
📞 Book your complimentary consultation today
Speak with one of Blacktower’s cross-border pension specialists to find out how a SIPP can help you manage your UK pension efficiently while living in Germany.