New culture on the example of pensions!



In Germany, the highest form of recognition is envy..                                                                                                Arthur Schopenhauer


nvy is truly a more than questionable form of (supposed) recognition … and that determines not only in German countries, as one must fairly admit. Nevertheless, our German neighbor has recently been striking in connection with the not unfounded suspicion of social envy in the context of the taxation of Luxembourg pensions – or pension benefits, knowing that there is corresponding legislation, which can, however, cause a certain level of excitement. It is about the taxation of pensions and pensions – and there seems to be a problem of interpretation on the part of the German tax authorities regarding the term “pension” or that of the “pension” itself – no matter how the statutory retirement benefits to the insured who are in Germany registered and who receive their statutory pensions – or pension benefits from their respective insurance periods in full or at least in part from Luxembourg – are paid monthly. According to the agreement between Luxembourg and Germany to avoid double taxation, the retirement benefits paid out by social security are generally taxable in the country in which they are actually paid. At least that is the generally applicable regulation, which should be clear and in itself.

As a result, a person who lives in Germany and also officially lives there, but who receives a pension from Luxembourg due to their rights, is subject to Luxembourg tax law. Only this year there are more and more known cases in which retirees – let’s stay with this general term for all forms of statutory old-age benefits – will be “delighted” with bad news from German tax offices, such as one, sent by the post at the end of the year The recipient of a modest widow’s pension, which had to pay around 13,000 euros to the German tax authorities. It should come as no surprise that news of this kind caused little enthusiasm and many questions at the end of the year …

So there is an evident need for clarification regarding the avoidance of double taxation with Germany. One cannot get rid of the suspicion that the overzealous German tax authorities can be associated with a clear culture of envy. A prankster who thinks bad …

Would it be due to the fact that there are already enough complications in pension and pension insurance, as well as in tax legislation, which are often more than incomprehensible in terms of text and the “normality” of our society – and “EU obligations “- Isn’t it finally time for our political leaders to provide final clarity in the context of the double taxation of statutory pension insurance across the EU? So that it is allowed for all insured persons concerned to have the right perspective for their case, or at least to be warned accordingly due to the position of the legislation applicable for the respective EU country? … and to finally avoid such painful bad news not only from German tax offices!


Frank Bertemes







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