Australian Superannuation While Living in Germany: What Happens to Your Super?

Australian superannuation is one of the most commonly overlooked financial considerations when Australians plan a move to Germany. Many people simply stop thinking about their super once they board the plane — and come back years later to find they have missed contribution opportunities, paid unnecessary fees, or created a tax situation they did not expect.

This guide covers exactly what happens to your super when you move to Germany, what your obligations are, what options you have, and the key decisions to make before you leave.

The Short Answer

Your Australian superannuation does not disappear when you move to Germany. It stays in your Australian super fund and continues to be subject to Australian superannuation law. The money is not lost and generally continues to grow (or decline) based on your fund's investment performance.

However, several things change or require attention when you move overseas:

• Employer contributions stop (unless you continue working for an Australian employer)
• You may or may not continue making voluntary contributions
• Fees continue to be charged whether you are contributing or not
• Your super may be classified as a foreign pension under German tax law — with implications for how Germany taxes it
• The Double Taxation Agreement between Australia and Germany affects how superannuation is treated
• Accessing your super early while overseas has strict rules

What Happens to Your Super Contributions

Employer contributions: Australian employers are required to pay the Superannuation Guarantee (currently 11.5% of ordinary time earnings in 2026, rising to 12% in 2025) into your super fund when you work for them. Once you leave Australian employment, these contributions stop.

If you move to Germany and work for a German employer, they contribute to the German pension system (Deutsche Rentenversicherung) — not your Australian super. You will accumulate German pension entitlements, but these are separate from your Australian super.

Voluntary contributions: You can continue making personal contributions to your Australian super fund while living in Germany, provided you are still eligible. However, from the financial year you become a non-resident for Australian tax purposes, the tax treatment of contributions changes significantly:

• Personal concessional contributions still attract a 15% contributions tax inside the fund
• Non-concessional contributions can still be made but the personal tax deduction is only available to Australian tax residents

Practical reality: Most Australians living in Germany stop making super contributions while they are away. This is fine in the short to medium term — your existing super balance continues to grow (or fluctuate) with investment returns. For longer absences, consider making periodic voluntary contributions to maintain momentum.

Fees While You Are Not Contributing

Super funds charge fees regardless of whether you are contributing. Common fees include:

• Administration fees (often a flat dollar amount per year)
• Investment management fees (a percentage of your balance)
• Insurance premiums (if you have life, TPD, or income protection insurance through your super)

Insurance through super — critical consideration: Many Australians have life insurance, total and permanent disability (TPD) insurance, or income protection insurance held through their super fund. These policies often have conditions that affect their validity while you live overseas.

Before you leave, check with your super fund whether:

• Your insurance cover remains active while you are a non-resident
• There are exclusions or conditions for overseas residents
• Whether maintaining insurance through super is cost-effective given the premiums

For longer stays in Germany (1+ years), many Australians either cancel insurance through super (relying on coverage through German statutory insurance) or switch to a self-managed arrangement. This is a personal decision requiring advice from a financial planner.

Australian Tax Residency and Super

Whether you remain an Australian tax resident while living in Germany depends on your specific circumstances — not simply on the fact that you live abroad. This is one of the most complex areas of Australian tax law and the rules have been evolving.

Australian tax residency tests: Australia uses a range of tests to determine tax residency, including the:

• Resides test (your ordinary place of residence)
• Domicile test (whether your permanent home is in Australia)
• 183-day test
• Superannuation test (for some government employees)

In practice, many Australians living in Germany remain Australian tax residents — particularly if they:

• Intend to return to Australia
• Maintain a home in Australia (own or rent)
• Have a spouse or dependants in Australia
• Have Australian bank accounts, investments, or ongoing business interests

Non-resident for Australian tax purposes: If you become a non-resident for Australian tax purposes (which generally requires ceasing all connection to Australia as a permanent home), your super balance is treated differently. Investment returns inside the fund continue to be taxed at 15% (the standard super tax rate) — Australian tax residency status does not change the tax rate inside the super fund itself.

Recommendation: Seek advice from an Australian tax accountant before leaving for Germany if you are uncertain about your residency status. Getting this wrong is expensive to fix.

How Germany Treats Australian Superannuation

This is the question that creates the most confusion, and the honest answer is that it is genuinely complex and depends on your specific situation.

The Australia-Germany Double Taxation Agreement (DTA): Australia and Germany have a Double Taxation Agreement that generally prevents the same income from being taxed in both countries. However, the DTA's treatment of superannuation is not entirely clear-cut, and interpretation has been a subject of dispute.

Key points:

Super contributions made before you move to Germany: These were made from Australian pre-tax income. Germany generally does not tax these until they are paid out as a pension or lump sum.

Investment returns inside your super fund: While your super is accumulating, the returns are taxed inside the fund at 15% in Australia. Germany does not generally tax these as they accrue — they are inside a foreign pension vehicle.

When you draw on your super (retirement or other access): This is where it gets complex. If you are a German tax resident when you access your super (either as a pension or a lump sum), Germany may claim the right to tax the payment as foreign pension income or foreign income. The DTA's pension article applies here, but the specific classification depends on how your super is structured and how it is drawn.

Practical situation for most Australians: Most Australians living in Germany for a working holiday, a few years of employment, or on a spouse visa are accumulating super in Australia while paying German tax on their German income. They are not drawing on their super during this time. In this situation, the cross-border tax complexity is largely a future problem — the super sits in Australia, grows, and will be addressed when you eventually draw on it.

Strong recommendation: Consult both an Australian tax accountant familiar with expat situations AND a German Steuerberater (tax adviser) about your specific situation. This is not an area for DIY tax planning.

Can You Access Your Super While Living in Germany?

Australian superannuation can generally only be accessed once you meet a condition of release — primarily reaching preservation age (currently 60) and retiring, or turning 65 regardless of employment status.

Early access conditions: There are limited circumstances where super can be accessed early, but living overseas is not generally one of them. Early access is available for:

• Severe financial hardship (strict criteria apply)
• Compassionate grounds (specific circumstances)
• Terminal illness
• Permanent incapacity
• First home super saver scheme (specific conditions)

Temporary resident departure (important): If you are a temporary resident of Australia (i.e. you held a temporary visa such as a student visa or temporary work visa in Australia and are now departing permanently), you are eligible to claim your super as a Departing Australia Superannuation Payment (DASP) once your Australian visa has ceased.

However, if you are an Australian citizen or permanent resident, DASP does not apply. Your super stays in Australia until you meet a standard condition of release.

The German Pension System: What You Accumulate There

While your Australian super sits untouched, working in Germany means you accumulate entitlements in the German statutory pension system (Deutsche Rentenversicherung — DRV). Contributions are compulsory for employees: approximately 18.6% of gross salary, split equally between employee and employer.

Will you receive a German pension? After a minimum of 5 years of contributions to the German system, you have a vested entitlement to a German pension payable from German retirement age (currently 67, rising further). Even shorter periods of contribution create a partial entitlement.

Australia and Germany have a Social Security Agreement (separate from the DTA) that coordinates pension entitlements between the two countries. This agreement prevents double-counting and allows contribution periods in both countries to be combined for eligibility purposes in some cases.

If you leave Germany before retirement: Your German pension contributions are not refunded (unlike super, which stays in your fund). They remain in the German pension system and you will receive a proportional German pension at German retirement age. For short stays in Germany (1–5 years), the German pension entitlement may be modest but it is real and should not be ignored.

Key Decisions to Make Before You Leave Australia

1. Consolidate your super accounts If you have multiple super accounts from different employers, consolidate them before you leave. Multiple accounts mean multiple sets of fees eroding your balance while you are away. Check for lost super at ato.gov.au/super.

2. Review and adjust insurance Decide whether to maintain or cancel insurance held through your super. If maintaining it, confirm the insurer covers overseas residents. If cancelling, ensure you have alternative coverage in Germany.

3. Choose an appropriate investment option If you are young and moving to Germany for 2–5 years, staying in a growth investment option is generally appropriate. If you are closer to retirement, discuss with a financial planner whether adjustments are warranted.

4. Update your contact details Ensure your super fund has a current email address and contact details. Australian postal addresses for super correspondence become a problem once you are no longer checking Australian mail.

5. Note your nomination of beneficiaries Check and if necessary update your binding death benefit nomination in your super fund. This specifies who receives your super if you die. Living overseas does not change the importance of this.

6. Speak to a financial adviser If you have a significant super balance (particularly $100,000+), professional advice before departing is worth the cost. The tax and structuring considerations for long-term overseas residents with Australian super are complex.

Frequently Asked Questions

Does my super fund need to know I am moving overseas? You should update your contact details but you are not required to notify your fund that you are moving abroad. Your super is governed by Australian law regardless of where you live.

Can I make super contributions from my German salary? Technically yes, as personal non-concessional contributions — but the tax benefits are significantly reduced for non-residents. In most cases it is not financially advantageous compared to investing in Germany or via international investment vehicles.

What is the best super fund for Australians living overseas? Funds with low fees are most important when you are not contributing, as fees erode your balance. Australian Retirement Trust, Hostplus, and AustralianSuper are frequently cited for their low fee structures — but compare your specific balance and situation.

Will I lose my super if I never return to Australia? No. Your super is your money and will be paid out when you meet a condition of release (typically at retirement age) regardless of where you live at that point. However, unclaimed super is eventually transferred to the ATO — maintain contact details with your fund to prevent this.

Summary

Your Australian super stays in Australia when you move to Germany, continues to be subject to Australian law, and continues to grow with investment returns. Employer contributions stop, fees continue, and the cross-border tax situation requires professional advice if you have a significant balance or are staying for many years.

Before you leave: consolidate accounts, review insurance, update contact details, and if you have a substantial balance, speak to a financial adviser who understands Australian expat superannuation. Do not let your super become an afterthought — for many Australians it will be one of their most significant financial assets in retirement.

Related reading: How to Move to Germany from Australia | Double Taxation Agreement Australia Germany Explained | German Health Insurance for Australians