Moving from Germany to Spain in 2026: the complete DACH relocation playbook

German nationals moving to Spain face an exit-tax problem that UK and US movers don't: the Wegzugsteuer under § 6 AStG. Any German tax resident with >1% shareholding in a corporation (German or foreign) faces deemed-realisation taxation of unrealised gains at the moment they cease German residency. For founders, executives with vested equity, or family-business owners, this can trigger six- or seven-figure tax bills on departure — even though no actual sale has occurred. The 2022 Wegzugsteuer reform introduced 7-year interest-free deferral for moves within the EU/EEA (Spain qualifies), but the planning window closes the moment German tax residency ends. Combined with the absence of a comprehensive Germany-Spain inheritance tax treaty, the lack of EU-style automatic mutual reduction for some cross-border pension flows, and the German private health insurance (PKV) reactivation problem if you ever return, the German relocation needs careful pre-departure structuring.

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Why BM Consulting

Specialised advice and personal service

BMC advises German nationals through the full DACH-to-Spain transition, coordinating with German Steuerberater for the pre-departure side (Wegzugsteuer assessment + deferral application, bAV pension treatment, DBA documentation, Erbschaftsteuer pre-planning) and handling the Spanish side end-to-end (visa pathway, NIE, empadronamiento, Beckham Law application within 6 months, Modelo 720 setup, ongoing IRPF compliance). Our German-speaking team works directly with you in German and bridges the documentation requirements between Finanzamt and AEAT.

  • **Wegzugsteuer (§ 6 AStG) is the #1 planning issue for German movers** — German exit tax on >1% shareholdings triggered at departure; 2022 reform allows 7-year interest-free deferral for EU/EEA moves (Spain qualifies) but application must be made BEFORE residency ends.

  • Germany-Spain DBA (1966/2011 Protocol) allocates taxing rights for cross-border income — residence-state primary for most periodic income; CRS automatic data exchange between Finanzamt and AEAT makes misreporting detectable.

  • Beckham Law (24% flat IRPF 6 years) available for German movers with Spanish employment — Modelo 149 within 6 months of Social Security registration is hard deadline.

  • Pensions

    statutory + bAV + Rürup typically REMAIN in Germany; DBA allocates taxing rights primarily to residence state (Spain) for periodic payouts; pension transfer (UK-QROPS-style) not generally possible.

How we work

From first contact to case completion

  1. Pre-departure German Wegzugsteuer assessment

    We coordinate with German Steuerberater to assess Wegzugsteuer exposure (§ 6 AStG): inventory of ≥1% corporate shareholdings worldwide, fair-market valuation at planned departure date, calculation of taxable deemed-realisation, structuring options to reduce exposure (gifting before move, restructuring shareholdings, pre-move sales), and the 7-year EU/EEA deferral application for Spain-bound movers.

  2. Spanish visa pathway selection

    We identify the optimal Spanish visa for German nationals (who as EU citizens have simpler pathways than UK/US movers): EU registration certificate for indefinite residence after passing the resources test, Digital Nomad Visa pathway not normally needed (EU mobility), but specific use cases (e.g. early-retirement before resources threshold) may benefit from NLV-style planning. Family registration included.

  3. Arrival and Spanish setup

    EU citizen registration at the Oficina de Extranjería (no visa required), NIE acquisition, empadronamiento at town hall, Spanish healthcare (multiple paths for German movers — see FAQ), Spanish driving licence (EU mutual recognition — no exchange needed), Spanish bank account, residence certificate (Certificado de Registro de Ciudadano de la Unión).

  4. Tax residency optimization + DBA coordination

    Beckham Law Modelo 149 within 6 months of Social Security registration (if eligible — for German movers with Spanish employment), German DBA notification, Modelo 720 setup for foreign assets, integrated Finanzamt + AEAT compliance calendar, ongoing DBA-based residency confirmation for pension and investment income.

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The problem

German nationals moving to Spain face an exit-tax problem that UK and US movers don't: the Wegzugsteuer under § 6 AStG. Any German tax resident with >1% shareholding in a corporation (German or foreign) faces deemed-realisation taxation of unrealised gains at the moment they cease German residency. For founders, executives with vested equity, or family-business owners, this can trigger six- or seven-figure tax bills on departure — even though no actual sale has occurred. The 2022 Wegzugsteuer reform introduced 7-year interest-free deferral for moves within the EU/EEA (Spain qualifies), but the planning window closes the moment German tax residency ends. Combined with the absence of a comprehensive Germany-Spain inheritance tax treaty, the lack of EU-style automatic mutual reduction for some cross-border pension flows, and the German private health insurance (PKV) reactivation problem if you ever return, the German relocation needs careful pre-departure structuring.

Our solution

BMC advises German nationals through the full DACH-to-Spain transition, coordinating with German Steuerberater for the pre-departure side (Wegzugsteuer assessment + deferral application, bAV pension treatment, DBA documentation, Erbschaftsteuer pre-planning) and handling the Spanish side end-to-end (visa pathway, NIE, empadronamiento, Beckham Law application within 6 months, Modelo 720 setup, ongoing IRPF compliance). Our German-speaking team works directly with you in German and bridges the documentation requirements between Finanzamt and AEAT.

Process

How we do it

1

Pre-departure German Wegzugsteuer assessment

We coordinate with German Steuerberater to assess Wegzugsteuer exposure (§ 6 AStG): inventory of ≥1% corporate shareholdings worldwide, fair-market valuation at planned departure date, calculation of taxable deemed-realisation, structuring options to reduce exposure (gifting before move, restructuring shareholdings, pre-move sales), and the 7-year EU/EEA deferral application for Spain-bound movers.

2

Spanish visa pathway selection

We identify the optimal Spanish visa for German nationals (who as EU citizens have simpler pathways than UK/US movers): EU registration certificate for indefinite residence after passing the resources test, Digital Nomad Visa pathway not normally needed (EU mobility), but specific use cases (e.g. early-retirement before resources threshold) may benefit from NLV-style planning. Family registration included.

3

Arrival and Spanish setup

EU citizen registration at the Oficina de Extranjería (no visa required), NIE acquisition, empadronamiento at town hall, Spanish healthcare (multiple paths for German movers — see FAQ), Spanish driving licence (EU mutual recognition — no exchange needed), Spanish bank account, residence certificate (Certificado de Registro de Ciudadano de la Unión).

4

Tax residency optimization + DBA coordination

Beckham Law Modelo 149 within 6 months of Social Security registration (if eligible — for German movers with Spanish employment), German DBA notification, Modelo 720 setup for foreign assets, integrated Finanzamt + AEAT compliance calendar, ongoing DBA-based residency confirmation for pension and investment income.

Why German movers face a different planning problem than UK or US movers

Within the EU, Germans don’t need a visa to move to Spain — EU freedom of movement is unaffected and the entry-side logistics are simpler than for UK or US movers. But the exit side (German side) is significantly more complex than for either UK or US movers, because Germany has the Wegzugsteuer under § 6 AStG: an exit tax on unrealised capital gains for any German tax resident with more than a 1% shareholding in any corporation worldwide.

The Wegzugsteuer alone can dwarf the entire Spanish tax planning equation for founders, executives with vested equity, or family-business owners. The good news: a 2022 reform introduced a 7-year interest-free deferral for moves within the EU/EEA (Spain qualifies). The bad news: the application must be made before German residency ends, and the deferral has ongoing conditions that — if breached — trigger immediate payment plus interest from the original date.

BMC coordinates with German Steuerberater to plan the Wegzugsteuer side and handles the Spanish side end-to-end with a German-speaking team.

Visa pathway — EU freedom of movement still applies

German nationals as EU citizens don’t need a Spanish visa. The path is:

  1. EU registration: register with the Oficina de Extranjería within 3 months of arrival (Certificado de Registro de Ciudadano de la Unión)
  2. Resources test: prove sufficient income/savings (typically €600/month per family member) and EU health coverage
  3. NIE: assigned at registration
  4. Indefinite residence: after 5 years of legal residence (Tarjeta de Residencia Permanente)

No visa fees, no consular file. Simpler than UK/US pathways.

For early-retired German movers below the resources test threshold OR with complex income arrangements, planning around the resources proof is the main pre-arrival logistic.

Wegzugsteuer (§ 6 AStG) — the high-stakes pre-departure issue

The Wegzugsteuer regime affects German tax residents with >1% shareholding in any corporation at the moment they cease German residency. The system treats the move as if the qualifying shares were sold at fair market value the day before departure.

Triggering events:

  • Cessation of German unbeschränkte Steuerpflicht (unlimited tax liability)
  • Most commonly: moving habitual residence (gewöhnlicher Aufenthalt) and centre of life interests to Spain

Taxable amount: difference between fair market value at departure and original acquisition cost (and any subsequent contributions). Taxed at German Einkommensteuer rates as deemed capital gain.

EU/EEA deferral (2022 reform):

  • For moves to EU/EEA (Spain qualifies): 7-year interest-free deferral
  • Application before residency ends, ongoing annual confirmation
  • Triggering events that end the deferral: moving on to non-EU country, actual sale of the shares within the 7 years (then real tax becomes immediately due), or other breach of deferral conditions
  • After 7 years: deferral expires, full payment due (or actual sale triggers earlier)

Pre-move structuring options:

  • Gift shares to family members before move (uses German Schenkungssteuer rather than Einkommensteuer + Wegzugsteuer)
  • Restructure shareholding to drop below 1% threshold (where commercially viable)
  • Pre-move sale of selected positions to crystallise gains at German rates with full credit
  • Time the move around vesting events or stock option exercises

For founders or executives with substantial vested equity, the difference between optimal vs default Wegzugsteuer planning can easily exceed €100k-€500k+.

Germany-Spain DBA — the framework for ongoing income flows

The Germany-Spain DBA was originally signed in 1966 and substantially updated by Protocol in 2011 (effective 2013). It governs how cross-border income is taxed:

  • Article 4 residence determination: tie-breaker rules where both countries claim residency
  • Article 6 real estate: taxed in country where located
  • Article 7 business profits: taxed in country where business is conducted (typically via PE rules)
  • Article 10 dividends: residence-state taxation with source-state withholding (15% typical, lower for corporate parent)
  • Article 11 interest: residence-state taxation generally
  • Article 17 pensions and government service: primary residence-state for private/occupational pensions; source-state for government pensions
  • Article 18-23 various special items: artists, students, professors, etc.
  • Article 24 elimination of double taxation: credit method primarily

CRS automatic exchange of financial account information between Germany and Spain (since 2017) makes asymmetric reporting easily detectable.

Beckham Law — eligible for German movers with Spanish employment

The Beckham Law gives new Spanish tax residents 24% flat Spanish IRPF on Spanish-source income for 6 years. For German nationals with Spanish employment (subsidiary of German group, new Spanish role at Spanish company, professional services delivered from Spain), this can save €30k-150k/year vs standard Spanish IRPF.

Eligibility requirements are the same as for non-German movers:

  • Not Spanish tax resident in 5 prior years
  • Move triggered by qualifying activity (Spanish employment, qualifying entrepreneurial activity, R&D role)
  • Modelo 149 application within 6 months of Social Security registration

Critical for German movers transitioning from German Direktzusage or bAV pension arrangements: foreign pension income from German plans typically remains foreign-source under Beckham — but the rules around “foreign-source” can be technical. BMC reviews each German pension arrangement for Beckham compatibility.

German pensions in Spain — limited transferability vs UK QROPS regime

Unlike UK movers (who have QROPS as a pension-transfer pathway), German movers typically cannot transfer their German pensions to Spanish equivalents. The German pension landscape is:

  • Gesetzliche Rentenversicherung (statutory): payable in Spain via German Rentenversicherung; periodic payments allocated to residence state under 2011 DBA Protocol
  • Direktzusage / bAV (occupational): typically remains in Germany; payouts to Spanish-resident retiree taxed per DBA allocation
  • Pensionskasse / Pensionsfonds: also typically remains in Germany
  • Direktversicherung: stays with the German insurer; payouts allocated per DBA
  • Riester-Rente: not transferable; remains in Germany; treatment of Riester support in Spain is complex
  • Rürup-Rente (Basisrente): remains in Germany; periodic payouts after age 60 allocated to residence state

Result: German pension capital largely stays in Germany. The optimization is in timing payouts (e.g. accumulating in Germany during low-Spanish-tax Beckham years, deferring large lump sums to specific tax years) and DBA classification of each payment stream.

PKV — the irreversible decision

Cancelling German Private Krankenversicherung (PKV) before moving to Spain is largely irreversible: re-entering PKV at later age requires medical underwriting and may be impossible or prohibitively expensive.

For German movers contemplating return to Germany within ~10 years: maintain PKV during the Spanish period if your policy allows EU-wide coverage. Many policies do.

For permanent movers: switch to Spanish coverage (Social Security if employed, Convenio Especial after 1 year empadronamiento, or private insurance for visa or supplemental).

Discuss with German Versicherungsmakler BEFORE termination — many movers regret PKV cancellation later.

Inheritance — German + Spanish dual exposure

No Germany-Spain inheritance tax treaty. Both Erbschaftsteuer and ISD may apply.

  • Germany: 7-50% rate by relationship + amount; allowances €500k spouse, €400k each child
  • Spain: autonomous-community ISD with near-zero rates for direct family in Madrid, Andalucía, Valencia
  • § 21 ErbStG unilateral credit: Germany credits Spanish ISD against German tax — but only up to German rate; when Spanish ISD is near-zero, Germany collects the full German rate
  • Pre-move gifting via Schenkungssteuer 10-year repeating allowances: a major planning lever

For HNW German movers, pre-move inheritance planning is time-sensitive and high-leverage. BMC coordinates with German Steuerberater and notary for asset restructuring before move.

Driving licence — EU mutual recognition

German licences are valid throughout the EU; no exchange needed. Voluntary exchange to Spanish licence is possible. Renewal requirements (over-65 medical) apply when German licence’s printed validity expires, via Spanish DGT for residents.

BMC’s Germany-Spain service

  • Pre-departure (German side coordination): Wegzugsteuer assessment + EU/EEA deferral application, bAV / Rürup / Riester treatment analysis, pre-move gifting, PKV decision support
  • Spanish entry: EU registration, NIE, empadronamiento, healthcare setup, residence certificate
  • Tax setup: Beckham Law Modelo 149 within deadline, Modelo 030 census
  • Ongoing: integrated Finanzamt + AEAT compliance calendar, DBA-based income classification, Modelo 720, annual IRPF + German Mantelbogen filing where required

German-speaking team. Direct coordination with your German Steuerberater on the cross-border issues.

What comes next

FAQ

Frequently asked questions

Wegzugsteuer (§ 6 of the Außensteuergesetz, AStG) is German exit tax triggered when a German tax resident with **>1% shareholding in a corporation** (German or foreign) ceases German tax residency. The deemed-realisation treats the move as if all qualifying shares were sold at fair market value the day before departure, taxing unrealised gains at German Einkommensteuer rates. This can produce significant tax bills for founders, executives with vested stock options, and family-business owners. **For moves within the EU/EEA (Spain qualifies), the 2022 reform provides interest-free 7-year deferral of Wegzugsteuer payment** — but the application must be made before residency ends and requires ongoing annual updates to the Finanzamt. Failure to meet the deferral conditions (e.g. moving on to a third non-EU country) triggers immediate payment of the deferred tax plus interest from the original deferral date. BMC coordinates with German Steuerberater to assess exposure and structure the move.
The Germany-Spain DBA was originally signed in 1966 and substantially updated by a Protocol in 2011 (effective 2013). It allocates taxing rights between Germany and Spain for cross-border income flows: (1) **Residence determination**: Article 4 tie-breaker rules apply if both countries claim residency — permanent home, centre of vital interests, habitual abode, nationality, mutual agreement. (2) **Pensions**: Article 17 (modified by 2011 Protocol) gives primary taxing rights to the residence state for private and occupational pensions; German government pensions remain taxable in Germany; complex source-state withholding rules for some periodic payments. (3) **Investment income**: dividends withholdings reduced (typically 15%); interest typically taxed in residence state; royalties and capital gains by treaty rules. (4) **Real estate**: taxed in country where located. (5) **Information exchange**: Germany and Spain automatically exchange financial account data (CRS), making misreporting more easily detected.
Yes, for German movers with Spanish-source employment income. The Beckham Law (régimen especial de impatriados, art. 93 LIRPF) gives a 24% flat IRPF rate on Spanish-source income up to €600,000 for 6 years, with foreign-source income generally not taxed in Spain. Eligibility: (1) not Spanish tax resident in the 5 years before arrival; (2) move triggered by Spanish employment, Digital Nomad Visa remote work (though as EU citizens, German nationals don't need a visa pathway), entrepreneurial activity, or highly qualified R&D role; (3) Modelo 149 application within 6 months of Social Security registration. For German tech workers moving to Spanish employers, German consultants moving to deliver services from Spain, or German executives joining Spanish subsidiaries of German groups, Beckham Law can save €30,000-150,000/year vs standard Spanish IRPF depending on salary and autonomous community. The 6-month deadline is strict — missing it forfeits eligibility for the entire 6-year window.
Treatment varies by pension type and Germany-Spain DBA allocation. (1) **Statutory German pension (gesetzliche Rentenversicherung)**: continues payable in Spain via German Rentenversicherung; under the 2011 DBA Protocol, primary taxing rights for periodic statutory pensions sit with the residence state (Spain) for new movers; ongoing German withholding may apply with subsequent crediting in Spain. (2) **Occupational pension (betriebliche Altersvorsorge — bAV)**: depends on form (Direktzusage, Pensionsfonds, Pensionskasse, Direktversicherung); transfer to Spanish equivalents typically not possible (no German equivalent of UK's QROPS regime); pension typically remains in Germany and pays out periodically with DBA-allocated taxing rights. (3) **Riester-Rente**: not transferable; remains in Germany. (4) **Rürup-Rente (Basisrente)**: also generally remains in Germany; periodic payouts after age 60 taxed in residence state under DBA. (5) **Lump-sum payments** (e.g. capital-paying bAV): generally taxed in source state per DBA. Spanish tax treatment of German pension income depends on whether you're under Beckham Law (foreign pension generally not exempt — pensions are foreign-source income but not excluded from Spanish tax under Beckham) or standard IRPF.
German private health insurance (Private Krankenversicherung — PKV) is one of the trickier issues for German movers because **once cancelled, returning to PKV is extremely difficult**. PKV admission depends on age, health status, and prior insurance history; older or sicker returnees may be uninsurable. Options for German movers: (1) **Maintain German PKV** during temporary or trial relocation — many PKV policies cover EU-wide treatment, allowing continued German coverage while resident in Spain. Check your specific policy. (2) **Switch to Spanish private insurance** (€40-150/month — significantly cheaper than German PKV typically) — works if your stay is intended permanent and German PKV return not contemplated. (3) **Spanish Social Security** if employed/autónomo — automatic via contributions, broadest coverage. (4) **Convenio Especial** — paid-in arrangement with Spanish public system, €60-157/month, available after 1 year empadronamiento. For Germans over 50 with PKV, the decision to cancel PKV is essentially irrevocable; BMC recommends discussing with German Versicherungsmakler before terminating PKV.
Both German and Spanish inheritance tax may apply, and **there is NO comprehensive Germany-Spain inheritance tax treaty** (the 1966/2011 DBA covers income tax only). German Erbschaftsteuer: rates from 7% to 50% depending on relationship and amount; significant allowances for spouses (€500k) and children (€400k each). Spanish ISD: applied by autonomous community of residence — Madrid, Andalucía, Valencia all apply near-zero rates for direct family Groups I and II. Without treaty allocation, both Germany and Spain may seek to tax the same estate. **Germany applies §21 ErbStG unilateral credit relief** for foreign inheritance tax paid, but only up to the German tax otherwise due on the same property — when Spanish ISD is near-zero, the credit doesn't help much, and Germany collects the full German rate. Pre-move planning via lifetime gifting (Schenkungssteuer with 10-year repeating allowances), trust-equivalent structures, or pre-move asset restructuring can produce significant savings. For HNW German movers, this planning is essential and time-sensitive.
No. German driving licences are valid throughout the EU under mutual recognition. Spanish residents holding a German licence can continue using it indefinitely; voluntary exchange is possible but not required. Note: licence holders over 65 must comply with Spanish renewal periods (5-year renewals with medical certificate from Jefatura Provincial de Tráfico) when the German licence's printed validity expires. The German licence remains the underlying document but renewal happens via the Spanish DGT for residents.

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Frequently asked questions

Questions about Moving from Germany to Spain in 2026: Complete Guide for DACH Movers — Wegzugsteuer, DBA, Beckham Law, Pension Transfer

Wegzugsteuer (§ 6 of the Außensteuergesetz, AStG) is German exit tax triggered when a German tax resident with **>1% shareholding in a corporation** (German or foreign) ceases German tax residency. The deemed-realisation treats the move as if all qualifying shares were sold at fair market value the day before departure, taxing unrealised gains at German Einkommensteuer rates. This can produce significant tax bills for founders, executives with vested stock options, and family-business owners. **For moves within the EU/EEA (Spain qualifies), the 2022 reform provides interest-free 7-year deferral of Wegzugsteuer payment** — but the application must be made before residency ends and requires ongoing annual updates to the Finanzamt. Failure to meet the deferral conditions (e.g. moving on to a third non-EU country) triggers immediate payment of the deferred tax plus interest from the original deferral date. BMC coordinates with German Steuerberater to assess exposure and structure the move.
The Germany-Spain DBA was originally signed in 1966 and substantially updated by a Protocol in 2011 (effective 2013). It allocates taxing rights between Germany and Spain for cross-border income flows: (1) **Residence determination**: Article 4 tie-breaker rules apply if both countries claim residency — permanent home, centre of vital interests, habitual abode, nationality, mutual agreement. (2) **Pensions**: Article 17 (modified by 2011 Protocol) gives primary taxing rights to the residence state for private and occupational pensions; German government pensions remain taxable in Germany; complex source-state withholding rules for some periodic payments. (3) **Investment income**: dividends withholdings reduced (typically 15%); interest typically taxed in residence state; royalties and capital gains by treaty rules. (4) **Real estate**: taxed in country where located. (5) **Information exchange**: Germany and Spain automatically exchange financial account data (CRS), making misreporting more easily detected.
Yes, for German movers with Spanish-source employment income. The Beckham Law (régimen especial de impatriados, art. 93 LIRPF) gives a 24% flat IRPF rate on Spanish-source income up to €600,000 for 6 years, with foreign-source income generally not taxed in Spain. Eligibility: (1) not Spanish tax resident in the 5 years before arrival; (2) move triggered by Spanish employment, Digital Nomad Visa remote work (though as EU citizens, German nationals don't need a visa pathway), entrepreneurial activity, or highly qualified R&D role; (3) Modelo 149 application within 6 months of Social Security registration. For German tech workers moving to Spanish employers, German consultants moving to deliver services from Spain, or German executives joining Spanish subsidiaries of German groups, Beckham Law can save €30,000-150,000/year vs standard Spanish IRPF depending on salary and autonomous community. The 6-month deadline is strict — missing it forfeits eligibility for the entire 6-year window.
Treatment varies by pension type and Germany-Spain DBA allocation. (1) **Statutory German pension (gesetzliche Rentenversicherung)**: continues payable in Spain via German Rentenversicherung; under the 2011 DBA Protocol, primary taxing rights for periodic statutory pensions sit with the residence state (Spain) for new movers; ongoing German withholding may apply with subsequent crediting in Spain. (2) **Occupational pension (betriebliche Altersvorsorge — bAV)**: depends on form (Direktzusage, Pensionsfonds, Pensionskasse, Direktversicherung); transfer to Spanish equivalents typically not possible (no German equivalent of UK's QROPS regime); pension typically remains in Germany and pays out periodically with DBA-allocated taxing rights. (3) **Riester-Rente**: not transferable; remains in Germany. (4) **Rürup-Rente (Basisrente)**: also generally remains in Germany; periodic payouts after age 60 taxed in residence state under DBA. (5) **Lump-sum payments** (e.g. capital-paying bAV): generally taxed in source state per DBA. Spanish tax treatment of German pension income depends on whether you're under Beckham Law (foreign pension generally not exempt — pensions are foreign-source income but not excluded from Spanish tax under Beckham) or standard IRPF.
German private health insurance (Private Krankenversicherung — PKV) is one of the trickier issues for German movers because **once cancelled, returning to PKV is extremely difficult**. PKV admission depends on age, health status, and prior insurance history; older or sicker returnees may be uninsurable. Options for German movers: (1) **Maintain German PKV** during temporary or trial relocation — many PKV policies cover EU-wide treatment, allowing continued German coverage while resident in Spain. Check your specific policy. (2) **Switch to Spanish private insurance** (€40-150/month — significantly cheaper than German PKV typically) — works if your stay is intended permanent and German PKV return not contemplated. (3) **Spanish Social Security** if employed/autónomo — automatic via contributions, broadest coverage. (4) **Convenio Especial** — paid-in arrangement with Spanish public system, €60-157/month, available after 1 year empadronamiento. For Germans over 50 with PKV, the decision to cancel PKV is essentially irrevocable; BMC recommends discussing with German Versicherungsmakler before terminating PKV.
Both German and Spanish inheritance tax may apply, and **there is NO comprehensive Germany-Spain inheritance tax treaty** (the 1966/2011 DBA covers income tax only). German Erbschaftsteuer: rates from 7% to 50% depending on relationship and amount; significant allowances for spouses (€500k) and children (€400k each). Spanish ISD: applied by autonomous community of residence — Madrid, Andalucía, Valencia all apply near-zero rates for direct family Groups I and II. Without treaty allocation, both Germany and Spain may seek to tax the same estate. **Germany applies §21 ErbStG unilateral credit relief** for foreign inheritance tax paid, but only up to the German tax otherwise due on the same property — when Spanish ISD is near-zero, the credit doesn't help much, and Germany collects the full German rate. Pre-move planning via lifetime gifting (Schenkungssteuer with 10-year repeating allowances), trust-equivalent structures, or pre-move asset restructuring can produce significant savings. For HNW German movers, this planning is essential and time-sensitive.
No. German driving licences are valid throughout the EU under mutual recognition. Spanish residents holding a German licence can continue using it indefinitely; voluntary exchange is possible but not required. Note: licence holders over 65 must comply with Spanish renewal periods (5-year renewals with medical certificate from Jefatura Provincial de Tráfico) when the German licence's printed validity expires. The German licence remains the underlying document but renewal happens via the Spanish DGT for residents.
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