Germany admin checklist before your working holiday

A working holiday in Australia, Canada, or New Zealand looks simple on paper — visa, flight, off you go. From a German administrative standpoint, you are leaving as a registered resident and returning as someone who needs to re-register. Skipping the paperwork can mean contributions that keep running with no one home to benefit from them, a frozen bank account while you are on the other side of the world, or a tax bill waiting at the door when you return. This guide walks through the five key areas in the right order. Exact rules vary by health insurer and municipality, so use this as a map and confirm the details directly with the relevant office.

Deregistering (Abmeldung): when and why

Registering your departure at the Einwohnermeldeamt (residents' registration office) is the trigger for almost everything that follows. If you give up your home in Germany and move abroad, you are legally required to deregister under the Bundesmeldegesetz — this applies to working holidays too. You can file the Abmeldung as early as one week before moving out, and no later than two weeks after. You lose your German resident status and are treated as a non-resident for tax and insurance purposes from that point.

The practical benefits are significant: statutory health insurance contributions stop, pension insurance becomes voluntary rather than mandatory, and you will no longer owe income tax in Germany from the following year — provided you truly have no address or habitual residence in Germany. The Rundfunkbeitrag (broadcasting levy) also ends. Keep the deregistration confirmation — both your health insurer and the tax office will ask for it as proof.

• File the Abmeldung at your local Einwohnermeldeamt: at the earliest 1 week before moving out, at the latest 2 weeks after
• Bring: valid passport or Personalausweis, completed Abmeldeschein (often available to fill in online beforehand)
• On return: register your new address (Anmeldung) within 14 days of moving in
• Keep the confirmation slip — health insurer and tax office both need it

Health insurance: membership ends — the Anwartschaft keeps your return rights

Deregistering terminates your statutory health insurance (gesetzliche Krankenversicherung, GKV) membership. No more contributions — but there is a catch: after an absence of more than twelve months, you may lose the right to freely choose your insurer on return and could face waiting periods for certain benefits. Most statutory insurers therefore offer an Anwartschaftsversicherung.

The Anwartschaft is not active insurance coverage — you cannot claim German health insurance benefits while abroad — but a kind of placeholder: it preserves your right to re-enrol seamlessly when you return, with no health screening and no waiting period. Contributions are low; at the TK, for example, the 2026 rate is roughly €23–28 per month depending on whether you have children. Whether your insurer offers an Anwartschaft and on what terms varies, so call them directly. Critical point: the Anwartschaft is not a substitute for travel and work health insurance for Australia. There is no social security agreement between Germany and Australia, and Medicare does not cover Working Holiday visa holders — you must arrange separate private health and work cover for your destination.

• GKV membership ends when deregistration is processed
• Anwartschaftsversicherung preserves return rights — it provides no active cover abroad
• TK 2026 rate: approx. €23–28/month; other insurers may differ
• Apply for the Anwartschaft before departure — it cannot be taken out retrospectively
• Separately essential: private travel and health insurance for your destination country

Pension insurance: pause or keep contributing voluntarily?

Without a German address and without a German employment contract, you are no longer subject to mandatory pension insurance contributions. Your contributions simply pause — there is no penalty for stopping. It is worth understanding what that means for your retirement, though.

Years abroad without contributions do not count as contribution years and do not increase your eventual pension. They may count under specific bilateral agreements, but Australia, Canada, and New Zealand each have limited or no pension-totalisation agreements with Germany for working holiday stays. If you want to avoid reducing your future pension, you can make voluntary contributions. This is explicitly available for German citizens with habitual residence abroad. In 2026 the minimum is €112.16 per month and the maximum is €1,571.70 — you choose the amount freely. Payments run through a German bank account or a contact person in Germany. Apply at Deutsche Rentenversicherung Bund before you leave.

• Mandatory pension contributions pause when you have no German address and no German employment
• Voluntary contributions possible: €112.16–€1,571.70/month in 2026 (adjusted annually)
• Apply at Deutsche Rentenversicherung Bund — sort this before departure
• Contribution gaps reduce your eventual monthly pension but rarely threaten basic eligibility for short working holidays

Taxes: departure year, your final return, and limited liability

In the year you leave, you remain fully tax-resident in Germany until the day you actually move out. You must file an income tax return for that period. Your Australian, Canadian, or New Zealand earnings for the rest of the calendar year are subject to the Progressionsvorbehalt (progression clause): they do not get taxed in Germany, but they push up the rate applied to your German income for the same year. From the following year, Germany generally has no claim on your income — as long as you truly have no address or habitual residence there.

If you continue to receive German-source income after leaving — rental income, certain capital gains, dividends from German companies — you fall under beschränkte Steuerpflicht (limited tax liability) and owe German tax on those items only. Australia, Canada, and New Zealand are not classified as low-tax jurisdictions, so the extended limited tax liability rules (§ 2 AStG) normally do not apply to working holiday travellers. If you hold German investment accounts, check whether ongoing income or planned disposals need to be reported before departure.

• Departure year: file an income tax return for the period up to deregistration
• Foreign earnings in the departure year fall under the Progressionsvorbehalt
• From the following year, no German tax liability if you have no address or habitual presence in Germany
• Limited tax liability (beschränkte Steuerpflicht) continues for German-source income such as rent or dividends
• Consider consulting a tax adviser or Lohnsteuerhilfeverein before departure

Bank accounts, investment portfolios, and SCHUFA

Deregistering makes you a non-resident in the eyes of German banks — and that can affect your accounts. Many German neobanks (N26, DKB, ING) restrict or close accounts when the registered address is no longer in Germany. Check with your bank before you leave and ask whether a non-resident arrangement is possible.

Traditional branch banks are often more flexible — a conversation at your local branch can keep the account open. Maintaining a German Girokonto matters: you will need it for transfers from abroad, possible tax refunds, and standing orders for ongoing German expenses. Investment accounts are a separate issue: many brokers restrict non-residents from trading German or European securities for regulatory reasons. Resolve any positions you want to keep or liquidate before departure. As for SCHUFA: your credit file stays intact while you are abroad. A dormant account with no activity does no damage to your score, as long as no negative entries arise.

• Many neobanks only allow accounts for German residents — check terms before departure
• Branch bank: have the non-resident conversation in person and get the outcome in writing
• Investment account: trading restrictions for non-residents are common — settle positions in advance
• SCHUFA score is unaffected by a dormant account with no negative entries
• Keep the Girokonto open if possible for refunds, transfers, and standing orders

Kindergeld and BAföG: notify the relevant offices

Kindergeld (child benefit) is generally not paid during a working holiday. The Familienkasse (family benefit office) does not consider working holidays to be vocational training, so the entitlement lapses. You are required to inform the Familienkasse before you go. Continuing to receive Kindergeld you are no longer entitled to is a legal offence and typically triggers a repayment demand — sometimes with a tax penalty added. Exception: if a significant portion of the stay involves a formally recognised language course, a partial entitlement may apply; the Familienkasse decides case by case. If you are receiving BAföG (student finance) and your studies are paused or discontinued, inform the relevant office promptly — payments stop when studies are interrupted.

• Kindergeld: working holiday does not qualify as vocational training — entitlement lapses
• Notify the Familienkasse before departure — continued payments without entitlement are unlawful
• Language course component may support a partial entitlement — seek individual clarification
• BAföG office: notify as soon as studies pause or end

How Tern helps

Tern is a multi-currency account you open from your phone before you board — all you need is your passport and Working Holiday visa approval (Tern is pre-launch; sign-ups are open now). Your account details for Australia, Canada, or New Zealand are ready before you land. Top up from euros at the mid-market rate with no hidden exchange margin, and withdraw from ATMs abroad with no fees. At a time when your German bank account may become more complicated to use from abroad, Tern gives you a straightforward way to move money between Germany and your destination.