Skip to main content

The Ultimate Guide to Investing for Expats in Germany

Fabian Beining - Senior Investment Consultant

Welcome to the Ultimate Guide to Investing for Expats in Germany! If you’re an expat living in Germany or considering moving there, you’ve come to the right place.

Investing can be a great way to grow your wealth and secure your financial future, and Germany offers a range of investment options that cater to different needs and risk levels.

In this guide, we’ll explore the popular investment options available to expats in Germany, the average returns you can expect from each option, and the current state of the German economy.

We’ll also discuss how to determine the best investment option for your individual circumstances and risk tolerance. By the end of this guide, you’ll have a solid understanding of the investment landscape in Germany and be equipped to make informed investment decisions.

So, whether you’re a seasoned investor or just starting out, let’s dive in and discover the exciting world of investing for expats in Germany!

Expat Population in Germany


Germany has a thriving expat community, with over 12.7 million foreigners living in the country, representing approximately 14.9% of the total population, according to the Federal Statistical Office of Germany. This makes Germany an attractive destination for individuals seeking new opportunities and a vibrant multicultural environment.

Age Distribution

The average age of an expat in Germany is 35 years old. This means that there is a diverse mix of young professionals, students, and families from around the world who have chosen to make Germany their home. The country offers excellent career prospects, a well-developed education system, and a high quality of life, which are all factors that contribute to its appeal among expats.

Germany provides a range of benefits and services to support its expat population, including health insurance, social security benefits, and access to high-quality healthcare and education. Moreover, the country has a strong infrastructure and a stable political environment, making it an ideal place for expats to settle down and invest in their future.

Expats in Germany also have the opportunity to contribute to the economy and society by bringing their diverse backgrounds, skills, and experiences to the table. This cultural exchange benefits both the expats themselves and the local communities they become a part of.

With such a large and diverse expat population, it’s no wonder that there are numerous investment options available to cater to their needs and preferences. Let’s explore some of the most popular investment options for expats in Germany.

Popular Investment Options for Expats in Germany

When it comes to investing your hard-earned money as an expat in Germany, there are several options that you can consider. Understanding these options can help you make informed decisions and maximize your financial growth. Let’s take a look at some of the popular investment options for expats in Germany:

Average Returns for Different Investment Options

When it comes to investing your hard-earned money, it’s important to understand the average returns for different investment options available to you as an expat in Germany. This knowledge can help you make informed decisions and maximize your potential earnings. Let’s take a closer look at the average returns for stocks, bonds, and real estate in Germany:


  • Average Annual Return: 7.5%

Investing in stocks can be an excellent way to grow your wealth over the long term. Historically, stocks have offered higher returns compared to other investment options. However, it’s important to note that stock market performance can be volatile and subject to fluctuations. It’s advisable to diversify your portfolio and consider your risk tolerance before investing heavily in stocks.


  • Average Annual Return: 3%

Bonds are often considered a safer investment option compared to stocks. They offer a fixed income stream in the form of regular interest payments. While the average return on bonds may be lower compared to stocks, they provide stability and can be a good option for risk-averse investors. Bonds issued by the German government, known as Bunds, are considered low-risk investments.

Real Estate

  • Average Annual Return: 4%

Investing in real estate can provide both income and potential capital appreciation. Germany has a stable and growing real estate market, making it an attractive option for expat investors. Rental income from residential or commercial properties can provide a steady cash flow, and property values tend to appreciate over time. However, it’s important to thoroughly research the real estate market and consider factors such as location, property type, and potential rental demand.

It’s worth noting that these average returns are just estimates based on historical performance. The actual returns you can achieve may vary depending on various factors such as market conditions, your investment strategy, and the specific investments you choose.

Remember to diversify your investment portfolio to spread the risk and potentially increase your overall returns. Consider consulting with a financial advisor who can provide personalized guidance based on your individual circumstances and investment goals.

“Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.” – Paul Samuelson

In conclusion, investing in Germany as an expat offers a range of investment options with varying average returns. Understanding these average returns for stocks, bonds, and real estate can help you make informed decisions and choose the best investment option for your individual circumstances and risk tolerance. Remember to do thorough research and seek professional financial advice before making any investment decisions. Happy investing!

Economy Overview

The German economy is one of the strongest and most stable in the world, making it an attractive destination for expats looking to invest. In this section, we will provide an overview of the current state of the economy in Germany, including information on the growth rate, unemployment rate, and inflation rate.

Growth Rate

The German economy has been experiencing steady growth in recent years. In fact, according to the latest data, the growth rate for Germany stands at an impressive 3.7%. This is a positive sign for investors, as it indicates a thriving economy that is conducive to investment opportunities.

Unemployment Rate

Germany boasts one of the lowest unemployment rates in Europe. Currently, the unemployment rate in Germany is at a low 3.1%. This is an important factor to consider when making investment decisions, as a low unemployment rate typically signifies a strong and stable economy.

Inflation Rate

Keeping an eye on the inflation rate is crucial for investors as it affects the purchasing power of their investments. In Germany, the inflation rate is currently at 2.5%. While this rate is slightly higher than some other countries, it is still within a manageable range and does not pose a significant threat to the economy.

In summary, the German economy is in a favorable position for investments. With a growth rate of 3.7%, a low unemployment rate of 3.1%, and a relatively stable inflation rate of 2.5%, Germany offers a promising environment for expats looking to invest.

“Investors should take advantage of the strong and stable German economy, which provides favorable conditions for investments.”

Economic Forecast

As an expat living in Germany, understanding the economic forecast can help you make informed decisions about your investments. Here are some key factors to consider:

Euro Exchange Rate

The exchange rate between the euro and other currencies plays a significant role in international investments. Currently, the euro is trading at $1.07. However, it’s important to note that exchange rates are subject to fluctuation due to various factors such as economic indicators, political events, and market sentiment. Keeping an eye on the exchange rate can help you determine when it might be a favorable time to invest.

Government Infrastructure Investment Plans

Germany has ambitious plans for investing in infrastructure, which can have a positive impact on the economy. By improving roads, bridges, railways, and other essential infrastructure, the government aims to boost economic growth and create job opportunities. Increased infrastructure investment can attract foreign investment and stimulate various sectors of the economy.

According to the German government’s plans, billions of euros will be allocated to infrastructure projects over the coming years. This investment is expected to have a multiplier effect on the economy, leading to increased productivity and a favorable business environment. As an expat, you can consider this economic development when evaluating the potential for long-term investments in Germany.

By taking into account the euro exchange rate and the government’s infrastructure investment plans, you can gain insights into the economic forecast that may impact your investment decisions. It’s crucial to stay updated on these factors and consult with financial advisors or professionals to make informed choices.

Remember that investing always carries risks, and it’s essential to consider your individual circumstances and risk tolerance before making any investment decisions. By keeping yourself informed and understanding the economic forecast, you can navigate the investment landscape with more confidence and potentially maximize your returns. Happy investing!

Determining the Best Investment Option

When it comes to investing, there is no one-size-fits-all approach. The best investment option for expats in Germany will depend on a variety of factors, including individual circumstances and risk tolerance. Here are some key considerations to keep in mind when determining the best investment option for you:

Individual Circumstances

Your individual circumstances play a significant role in determining the best investment option. Factors such as your age, financial goals, investment timeframe, and income level will all impact which investment option is most suitable for you. Here are a few scenarios to consider:

  • Younger expats: If you’re a younger expat with a longer investment timeframe, you may have a higher risk tolerance and can consider more aggressive investment options like stocks or real estate. These investments tend to have higher volatility but also offer the potential for higher returns over the long term.
  • Retirement planning: If you’re an expat nearing retirement or already retired, your focus might be on preserving capital and generating income. In this case, more conservative investment options like bonds or dividend-focused stocks may be more appropriate.
  • Short-term goals: If you have short-term financial goals, such as buying a house or funding your child’s education, you may want to prioritize investments with lower volatility and higher liquidity, such as bonds or cash equivalents. These investments offer more stability and quick access to funds when needed.

Risk Tolerance

Understanding your risk tolerance is crucial when choosing the best investment option. Risk tolerance refers to your comfort level with taking on investment risk. It’s important to remember that all investments come with some level of risk, and higher potential rewards often come with higher risks. Consider the following risk tolerance categories:

  • Conservative: Conservative investors tend to prioritize capital preservation over high returns. They are more comfortable with lower-risk investments like bonds or certificates of deposit. These investments offer more stability but generally have lower returns.
  • Moderate: Moderate investors strike a balance between risk and return. They may allocate their investment portfolio across a mix of stocks, bonds, and real estate to capitalize on growth opportunities while maintaining a certain level of stability.
  • Aggressive: Aggressive investors are willing to take on higher levels of risk in pursuit of higher returns. They may allocate a larger proportion of their portfolio to stocks or real estate, which carry more volatility but also offer the potential for greater rewards.

Knowing your risk tolerance is essential for selecting investments that align with your comfort level. It’s always a good idea to speak with a financial advisor or investment professional who can help assess your risk tolerance and guide you towards the most suitable investment options.

Remember, the best investment option is unique to each individual. It’s crucial to carefully evaluate your individual circumstances, financial goals, and risk tolerance when making investment decisions. By doing so, you can create a well-rounded investment portfolio that aligns with your specific needs and sets you up for long-term financial success. Happy investing!


In conclusion, investing for expats in Germany offers a wide range of options to build wealth and secure your financial future. With a diverse expat population and a strong economy, there are ample opportunities to maximize your investment returns. It’s important to consider your individual circumstances and risk tolerance when choosing the best investment option for yourself. Consulting with a financial advisor, like the experts at Finanz2Go, can provide you with personalized advice and guidance to optimize your investment portfolios.

At Finanz2Go, we specialize in providing personalized investment advice and asset management services for expats in Germany. Our licensed and certified financial advisors offer objective and data-driven strategies to help you achieve your financial goals. Join our Financial Expat Community and take control of your financial future. Visit our website at to learn more about our services and get started on your investment journey.

Remember, investing is a long-term commitment, and it’s important to stay informed about market trends and regularly review your investment strategy. With careful planning and expert guidance, you can make well-informed investment decisions and achieve financial success as an expat in Germany. Take the first step towards financial independence and secure your future today!

Frequently Asked Questions

  1. What are the important factors expats in Germany should consider while investing?Expats in Germany should consider factors such as their financial goals, risk tolerance, investment time horizon, tax implications, and understanding the local investment landscape and regulations.
  2. Are expats in Germany allowed to invest in local financial products?Yes, expats in Germany are allowed to invest in local financial products, such as stocks, bonds, mutual funds, and ETFs. However, it’s important to understand German tax laws and regulations regarding foreign investors.
  3. Should expats in Germany consider hiring a financial advisor for their investments?Hiring a financial advisor can be beneficial for expats in Germany, especially if they are unfamiliar with local investment options and regulations. A qualified advisor can provide personalized advice based on individual circumstances and help optimize investment strategies.
  4. What are the tax implications for expats investing in Germany?Expats investing in Germany may be subject to taxes on capital gains, dividends, and interest income. It’s crucial to familiarize yourself with German tax laws, consult with a tax professional, and consider tax-efficient investment strategies.
  5. Are there any investment options specifically designed for expats in Germany?Yes, there are investment options specifically designed for expats in Germany, such as international investment funds and offshore financial products. These options cater to the unique needs and circumstances of expats and provide opportunities for diversification.

Resources for this article:

  1. Bundesverband Deutscher Banken (Federal Association of German Banks): Offers valuable information about the banking industry in Germany, as well as consumer protection and financial education resources.
  2. Deutsche Bundesbank: The central bank of Germany provides insights into economic developments, monetary policy, and financial stability in the country.
  3. Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) (Federal Financial Supervisory Authority): Offers information on financial regulation and supervision in Germany, helping consumers understand their rights and protections.
  4. The Association of International Certified Professional Accountants: Provides resources for professionals in the accounting and financial advisory industries, including certification programs and continuing education opportunities.
  5. The Financial Planning Association (FPA): Offers resources and support for financial planning professionals, as well as a directory of financial advisors.
  6. Certified Financial Planner Board of Standards, Inc.: Provides information on the Certified Financial Planner (CFP) designation, including certification requirements and a directory of CFP professionals.
  7. Expatica’s Guide to Banking in Germany: Offers a comprehensive guide to banking in Germany for expats, including information on opening a bank account, understanding banking fees, and navigating the German banking system.