# Pension lump sum. Taxable?



## Muggers

Could anybody tell me if a lump sum payment from an occupational pension in the UK is taxable here in Germany? The payment is free of tax in the UK.
Many thanks.


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## Your Europe

Unfortunately yes. If you spend more than six months a year in Germany, you may be considered a tax-resident there, which means that you have to pay tax to Germany on your total worldwide income - including UK pensions you receive from other EU countries. Only if you were employed in the public sector your pensions will usually be taxed in the UK. /SNIP/


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## Muggers

Your Europe said:


> Unfortunately yes. If you spend more than six months a year in Germany, you may be considered a tax-resident there, which means that you have to pay tax to Germany on your total worldwide income - including UK pensions you receive from other EU countries. Only if you were employed in the public sector your pensions will usually be taxed in the UK.


Thanks for that. I googled as you suggested, but the sites contain rather general information and refer back to German tax authorities.

May I ask your opinion on something? You said above that Public sector pensions are usually taxed in the UK. Does this mean that if such a pension has had a tax calculation applied to it by the UK authorities it does not need to be declared to the German authorities? Does this apply to the lump sum also, which comes from the same pension?

Mine is a Post Office pension which, while not called a Public Sector pension before April 2012, may have become so after the government take over of Royal Mail Pensions at that date. The parliamentary notes describe the whole pension scheme as being "transferred to a new public sector scheme".

I am awaiting clarification from my pension provider on its current status. If it turns out to now be classed as a public sector pension, I would not wish to unnecessarily declare it to the German authorities, hence my request for your opinion. Thanks for any insight you may be able to give on this.


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