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German Pension with Residence in Dubai — Payment, Taxation 2026
German Pension with Residence in Dubai
The statutory pension is also transferred to the UAE (§ 110 SGB VI — German Social Code, pension payments abroad). Since the expiry of the Germany-UAE double taxation agreement on 31 December 2021, the right of taxation lies with Germany — limited tax liability under § 49 Abs. 1 Nr. 7 EStG (German Income Tax Act, income from pension payments). The UAE itself levies no income tax on pensions. Annual life certificate mandatory.
Payment Route
Renten Service GmbH of Deutsche Post handles foreign pensions. Pensions can be paid in EUR to a German account, in EUR to a UAE account, or converted into AED. The conversion surcharge of Renten Service GmbH is typically 0.3–0.7 % — more favourable than standard bank conversion. For larger pensions, payment in EUR and FX management on one's own account is advisable.
Tax Treatment — Without DTA Since 2022
| Aspect | Treatment |
|---|---|
| Right of taxation | Germany (no DTA) |
| Norm | § 49 Abs. 1 Nr. 7 EStG |
| Taxable share 2026 | 84 % (pension commencement 2026) |
| Basic allowance | Not applicable (limited tax liability) |
| Tariff | Linear entry tariff (~14 %+) |
| UAE tax | 0 % on pensions |
Note: For combined income (pension + AED rents + EU capital), individual assessment with a tax adviser is often worthwhile. AXD arranges vetted DACH-UAE dual-qualified advisers.
Life Certificate in Dubai
Source: German Embassy Abu Dhabi, Consulate General Dubai, or Notary Public + Apostille (MOFA UAE). Deadline: annually, receipt by DRV by September of the following year. Form: Deutsche Rentenversicherung sends a pre-filled form automatically each year. Consequence of failure: suspension of payments after 6 months' reminder.
What Has Changed Since the DTA Expiry in 2022
The Germany-UAE DTA of 2010 was terminated by the German side and ceased to be in force on 31.12.2021. A new agreement is not in prospect (as at BMF May 2026). Consequences for pensioners: German right of taxation applies in full, no withholding tax offset, no reduction to 50 % as under Art. 18 of the old DTA. In practice, this means an effective burden of 14–22 % on the taxable share.
Related Topics
- DTA Germany-UAE — Status and Consequences
- 183-Day Rule — German Tax Liability in Dubai
- Health Insurance Dubai for DACH Emigrants
- Tax Residency Certificate UAE for Germans
Sources
- DRV — Pensions Abroad
- § 110 SGB VI
- § 49 EStG
- BMF — Notice on the Expiry of the Germany-UAE DTA (2021)
- Renten Service GmbH (Deutsche Post)
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