The good news is that the FATCA re­gu­la­ti­on has left a loophole in the system that allows US citizens in Germany to invest in ETFs and funds via a pension plan. 

The reason for this is the structure of private pension products here in Germany. Fund-based pension insurance policies act as a shell for the funds, within which no capital gains tax has to be paid in Germany as long as the money is invested in the insurance policy, which means that no ad­di­tio­nal tax return has to be submitted and no tax is payable during while the money is in the plan. This loophole enables US citizens to invest their money pro­fi­ta­b­ly over the long term. Depending on the in­vest­ment horizon and salary, a pension insurance policy can also save a lot of tax. 

Due to the re­gu­la­ti­ons, very few insurance companies offer fund in­vest­ments for US citizens and the re­qui­re­ments are con­stant­ly changing. Due to our spe­cia­li­sa­ti­on, we are up to date and look for the best solutions in the entire market.

Of course, investing in an annuity is not meant for a short-term in­vest­ment, but requires a long-term in­vest­ment horizon. And yes, investing through an insurance company involves a higher cost structure than a custody account. As in­de­pen­dent brokers, we have spe­cia­li­sed in comparing the cost con­di­ti­ons of insurers and selecting the most efficient solutions for our clients. 

In doing so, we trans­par­ent­ly compare all available providers on the market, both brutto and netto policies (com­mis­si­on-based and fee-based).

What’s more, a good insurance policy not only offers massive tax ad­van­ta­ges and ad­di­tio­nal benefits, but above all it means no work and no headaches for you. 

The easiest way to find out which in­vest­ment makes sense for you and suits your needs is to have a free initial con­sul­ta­ti­on with us, where we can show you which options are available and suit your in­di­vi­du­al situation.