Investing after moving to Germany: what to review before adding new investments

Moving to Germany does not mean your investment life starts from zero.

You may already have:

• savings accounts;
• ETFs or funds;
• individual shares;
• pension contracts;
• life-insurance investments;
• employee share plans;
• property;
• investment accounts in another country.

So the first investment question should not be:

“What should I buy in Germany?”

It should be:

“What do I already own, what job is each asset doing, and what changed when I moved?”

That review can prevent you from creating duplicate, expensive or tax-sensitive structures simply because a new German product is available.

1. Start with the purpose of the money

Before choosing a product, classify the capital.

Money you may need soon

Examples:

• emergency reserve;
• moving costs;
• rental deposit;
• tax payments;
• planned vehicle purchase;
• home purchase;
• family expenses.

This money should not automatically be exposed to market risk.

Money for a medium-term goal

The appropriate level of risk depends on how fixed the spending date is.

A five-year goal is different from a 25-year retirement horizon.

Long-term capital

Money that can genuinely remain invested for a long period can tolerate a different risk profile.

The investment should follow the purpose and horizon.

Not the other way around.

Savings planning in Germany

2. Build an inventory before opening a new depot

List every existing asset.

For each one, record:

Asset	Country	Owner	Current value	Purpose	Access	Costs	Tax question
ETF portfolio	France	You	€…	Long term	Liquid	…	German tax treatment
Livret A	France	You	€…	Emergency	Immediate	…	German interest treatment
Employer pension	Germany	You	€…	Retirement	Restricted	…	Later taxation
Assurance-vie	France	You	€…	[purpose]	Contract-specific	…	Cross-border treatment

This exercise often reveals that the real issue is not “lack of investments”.

It is lack of structure.

3. German tax residence can change the context of foreign investments

If you have a residence or habitual abode in Germany, § 1 EStG generally creates unlimited German income-tax liability.

That does not mean every foreign asset is taxed in the same way.

But it does mean the German tax position cannot be ignored simply because:

• the broker is in France;
• the bank account remains abroad;
• the product has a French tax label;
• the investment was opened before the move.

German tax law includes interest, dividends and other capital income within the capital-income framework under § 20 EStG.

The exact treatment of:

• distributions;
• gains;
• foreign funds;
• life-insurance contracts;
• foreign withholding tax;
• double-taxation agreements

depends on the product and individual circumstances.

Do not close or sell an investment only because you moved.

Do not assume its old tax treatment still applies unchanged either.

Tax adviser or financial adviser: who should handle what in Germany?

4. Check whether your old provider still supports German residents

A financial account can remain technically open while becoming administratively awkward.

Ask the provider:

• Can I remain a client while resident in Germany?
• Do you need my German tax identification number?
• Can I continue contributing?
• Can I buy new products?
• Are some securities restricted?
• Can I change my address online?
• Which tax documents will you provide?
• Will you withhold tax in the original country?
• What happens if I later move to another country?

The answer is provider-specific.

A product being legal to hold does not necessarily mean the provider offers the same service to non-residents.

5. Separate account location from investment exposure

A French broker does not make an investment “French”.

A German broker does not automatically make it “German”.

What matters economically is what you own underneath.

For example, a globally diversified equity ETF bought through a German depot can contain companies from:

• the United States;
• Europe;
• Japan;
• emerging markets;
• many other countries.

So diversification should be measured by the underlying assets, not by the number of countries in which you hold accounts.

6. More products do not automatically mean more diversification

You can own five ETFs and still be highly concentrated.

For example:

• one MSCI World ETF;
• one S&P 500 ETF;
• one US technology ETF;
• one Nasdaq ETF;
• one “global innovation” fund

can all contain many of the same large US companies.

The number of lines in the portfolio is not the same as the number of independent risks.

Verbraucherzentrale recommends broad diversification and notes that suitable global equity ETFs can spread exposure across thousands of companies.

The useful question is:

“What am I actually exposed to?”

not:

“How many funds do I own?”

7. Review concentration created by your career

International professionals can accidentally concentrate their financial life around one company or sector.

For example:

• salary from one employer;
• bonus linked to that employer;
• company shares;
• employee stock plan;
• career prospects in the same industry.

Adding more employer shares can increase concentration even if the investment itself has performed well historically.

Your portfolio should be reviewed together with your human capital — where your future income already depends.

8. Understand currency exposure

If you live and spend primarily in euros, foreign-currency assets can create another source of fluctuation.

That does not mean all investments should be denominated in euros.

But distinguish:

Account currency

The currency in which your broker displays the investment.

Trading currency

The currency in which a fund or share trades on an exchange.

Underlying economic exposure

The currencies and economies of the companies or assets held underneath.

Changing an ETF listing from USD to EUR does not necessarily remove the underlying currency exposure.

Currency should be considered in the context of:

• spending needs;
• future country of residence;
• asset allocation;
• investment horizon.

9. Compare all layers of cost

Investment cost is not only the visible annual fund fee.

Potential costs can include:

• broker custody fees;
• transaction costs;
• spreads;
• fund ongoing charges;
• active-management fees;
• adviser / distribution costs;
• insurance-wrapper costs;
• performance fees;
• currency-conversion costs;
• exit / surrender costs.

Verbraucherzentrale repeatedly highlights the long-term impact of investment costs and recommends checking product information and cost disclosures.

A difference that looks small as a yearly percentage can become material over decades.

10. ETF does not automatically mean diversified

ETFs are a legal / trading structure, not one single investment strategy.

An ETF can track:

• a broad global market;
• one country;
• one sector;
• commodities;
• bonds;
• leveraged strategies;
• highly concentrated themes.

Verbraucherzentrale notes that many ETFs are not appropriate as broad long-term wealth-building tools simply because the underlying index is too narrow.

So if an ETF is being considered, review at least:

• underlying index;
• number of holdings;
• geographic concentration;
• sector concentration;
• cost;
• fund size;
• replication / structure where relevant;
• distributing vs accumulating mechanics.

Do not buy a product simply because the name contains “ETF”.

11. Do not confuse historical return with expected return

Past market returns can help illustrate risk and historical behaviour.

They cannot provide a guaranteed future return.

Avoid building a plan around statements such as:

• “stocks return 8% every year”;
• “this ETF cannot lose over 10 years”;
• “property always appreciates”;
• “bonds are always safe”.

Any long-term projection should clearly state its assumptions and show how the plan changes under weaker outcomes.

12. Keep liquidity separate from long-term investment

The most common investment mistake after relocation is sometimes not choosing the wrong ETF.

It is investing cash that will be needed soon.

International moves can still create unexpected expenses involving:

• housing;
• tax;
• travel;
• family;
• visa / administrative matters;
• job changes;
• moving again.

Do not invest the reserve simply because cash interest feels disappointing.

Investment risk should be taken only with capital whose horizon allows it.

13. Review old insurance-based investments carefully

International residents can arrive with:

• assurance-vie;
• private pension insurance;
• unit-linked insurance;
• endowment policies;
• other long-term wrappers.

Do not compare them only on current account value.

Collect:

• guarantees;
• surrender value;
• fees;
• future contributions;
• investment allocation;
• death benefit;
• tax position;
• maturity conditions;
• penalties / bonuses;
• beneficiary clauses.

An existing contract can be unattractive for new contributions while still containing valuable legacy features.

A review is different from an automatic cancellation.

14. Pension assets and flexible investments are not interchangeable

A pension product can offer tax treatment or retirement structure but restrict access.

A normal investment account can offer much greater liquidity but different tax treatment and no guaranteed lifetime income.

Do not rank them only by expected investment return.

Compare:

• access;
• time horizon;
• tax;
• cost;
• survivor rules;
• flexibility;
• portability;
• investment risk.

Retirement audit in Germany: 8 things to check

15. Property is not automatically the “safe” part of the portfolio

Direct property can involve:

• one location;
• one large asset;
• financing;
• maintenance;
• transaction costs;
• illiquidity;
• tenant / vacancy risk if rented.

A home can be valuable for lifestyle and long-term planning.

It should not be treated as risk-free diversification simply because the price does not update every second like a stock-market account.

Investing in Germany

16. Think about what happens if you leave Germany again

An internationally mobile person should ask:

• Can I keep the depot?
• Can I continue contributing?
• Will the broker serve the new country?
• How will tax reporting change?
• Does an insurance contract remain usable?
• Are there exit / transfer costs?
• Does the next country recognise the same tax wrapper?
• Will I need another currency?
• Is a property purchase compatible with another move?

A product that is highly efficient only while you stay in one country for 30 years may be a poor fit if your career is genuinely mobile.

That does not mean you should avoid long-term investments.

It means portability deserves a place in the decision.

A portfolio review after moving to Germany

Use this sequence.

1. List everything

Accounts, pensions, insurance, property and debts.

2. Assign each asset a job

• emergency;
• short-term goal;
• retirement;
• long-term growth;
• property;
• protection.

3. Identify cross-border questions

Mark anything where:

• tax treatment is uncertain;
• provider residency rules changed;
• currency matters;
• ownership is unclear.

4. Measure real diversification

Look through funds to underlying:

• countries;
• sectors;
• companies;
• asset classes.

5. Calculate all costs

Do not compare products on TER alone.

6. Define the target horizon and risk

Separate capital by when it may be needed.

7. Only then consider adding a new investment

The new product should solve a specific portfolio problem.

When does adding a new investment make sense?

Potentially when it:

• fills a genuine diversification gap;
• matches a new long-term goal;
• reduces unnecessary cost;
• improves portability;
• replaces a structure only after a proper comparison;
• puts previously unallocated long-term cash to work.

Not simply because:

• a German broker is advertising it;
• colleagues own it;
• it performed well recently;
• it has a tax feature;
• you feel you should “invest more”.

Frequently asked questions

Should I close my foreign investment account after moving to Germany?

Not automatically. Check provider rules, German tax treatment, costs and whether the account still fits the plan.

Is a German broker always better for a German resident?

No. A German provider can simplify some administration, but service, cost, investment access and future mobility also matter.

Do I need several ETFs to diversify?

Not necessarily. One sufficiently broad fund can provide much more diversification than several overlapping narrow funds.

Are ETFs always low risk?

No. ETFs inherit the risks of the assets / index they track. An equity ETF can fall substantially.

Should I sell a French assurance-vie after moving to Germany?

Not automatically. Existing guarantees, surrender terms, costs and German tax treatment need to be reviewed first.

Is cash a bad investment?

Cash has lower long-term growth potential than riskier assets but serves a different role. Accessible reserves should not be judged as failed long-term investments.

Should I invest differently because I may leave Germany?

Mobility can affect provider access, tax and product practicality. It should be included in the design, but it does not automatically require a short-term portfolio.

Can Plan Save Shine tell me how Germany taxes every foreign investment?

Individual cross-border tax treatment should be confirmed by a Steuerberater or another authorised tax professional. Financial planning can identify the tax dependency and use the validated answer in the wider investment decision.

Add investments only after you understand the portfolio you already brought with you

Moving to Germany can make your financial life feel new.

Your assets are not new.

Before opening another account or buying another product:

• map what already exists;
• identify the purpose of each asset;
• check tax and provider changes;
• measure diversification;
• understand costs;
• preserve enough liquidity;
• consider future mobility.

Then invest because the new asset has a job.

Not because the move made the old portfolio invisible.

Explore investment support Contact Plan Save Shine

Sources

This article was reviewed against current sources including:

• Verbraucherzentrale — ETFs: advantages and disadvantages: ETFs can be low cost but are not suitable for every objective or every index;
• Verbraucherzentrale — ETF selection, March 2026: broad diversification, costs, fund size and index selection;
• Verbraucherzentrale — Diversification with equity ETFs: broad underlying exposure rather than fund count;
• Verbraucherzentrale — Financial-product costs: ongoing and one-off costs materially affect long-term outcomes;
• EStG §§ 1 and 20: German residence / unlimited tax liability framework and capital-income category.

Individual investment suitability and cross-border taxation depend on personal circumstances, product structure and residence.