US citizens living in Germany encounter significant challenges when saving for retirement, primarily due to bureaucratic hurdles and tax regulations. Many respondents to a recent survey expressed frustration over being turned away from major German banks, which avoid American customers due to the complexities introduced by the Foreign Account Tax Compliance Act (FATCA). This law requires foreign banks to report American account holders' assets, complicating account opening. Additionally, the double taxation requirement mandates that US citizens declare their foreign income to the IRS, adding further difficulties to planning for retirement.
The challenges faced by US citizens working in Germany regarding retirement savings stem from complex regulations, bank reluctance, and the burden of double taxation laws.
German financial institutions are hesitant to serve American clients due to the Foreign Account Tax Compliance Act (FATCA), which requires them to report US account holders’ assets.
Double taxation complicates saving for retirement as Americans must declare their income both in Germany and to the US, despite potentially not owing additional taxes.
Many US citizens living in Germany feel frustrated by the lack of accessible and secure savings options due to these financial and bureaucratic obstacles.
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