Insurance in Germany for foreigners: 2026 overview

In Germany almost everything is insured, and newcomers' heads spin. Some policies are required by law, some are very sensible, and some will be actively sold to you even though you don't need them. For foreigners there's an extra twist: pension contributions directly affect permanent residence, and after 45 they also affect your first work-based residence permit. Let's go through it step by step.

Statutory social insurance

If you're employed, you're automatically covered by five branches of social insurance. Contributions are deducted from your salary, and most of them are split equally between employee and employer. Rates for 2026:

Health insurance (Krankenversicherung): 14.6% plus your health fund's additional contribution (2.9% on average in 2026).
Long-term care insurance (Pflegeversicherung): 3.6%. If you're over 23 and childless, your share is 0.6 percentage points higher. There are reductions from the second child under 25.
Pension insurance (Rentenversicherung): 18.6%.
Unemployment insurance (Arbeitslosenversicherung): 2.6%.
Accident insurance (Unfallversicherung): paid entirely by the employer. It covers accidents at work and on the way to and from work.

All in all, about 21% of your gross pay goes to social insurance. That's a lot, but in return you get healthcare, unemployment benefit (Arbeitslosengeld) and a future pension.

Health insurance: public or private

Health insurance is mandatory for everyone living in Germany. Without it your residence permit won't be renewed and you can't be naturalised.

Public health insurance (GKV): AOK, TK, Barmer, DAK and others. Your contribution depends on income, not on age or health. Spouses without income and children are covered for free (Familienversicherung). The funds offer almost the same care and differ mainly in their additional contribution and bonuses.
Private health insurance (PKV): open to the self-employed, civil servants and employees earning above a set income threshold. Often cheaper when you're young, but premiums depend on age and health, and every family member is insured separately. Returning to public insurance after 55 is almost impossible. For foreigners not sure they'll stay in Germany for good, that's a serious risk.

Pension insurance: how it works

You qualify for the standard old-age pension (Regelaltersrente) with at least 5 years (60 months) of contributions. The retirement age for people born in 1964 or later is 67.
The amount depends on how long and on what salary you paid in. Once a year the Deutsche Rentenversicherung sends you a pension statement (Renteninformation) with a forecast. Keep it.
Child-raising periods up to age three and time spent caring for relatives also count.
Minijob: pension contributions are deducted by default. You can opt out, but if you're a foreigner building up contribution time for permanent residence, better not.
The self-employed in most professions aren't required to pay into the state pension, but can do so voluntarily. That matters for residence (see below).

Time from another country. Germany has social security agreements with many countries, and then periods in both countries can be combined. An agreement with Ukraine has been signed but is not yet in force, so Ukrainian and German periods are currently counted separately. A German pension can usually also be paid abroad.

Extra provision. The state pension usually isn't enough, so Germany encourages additional saving. The simplest option is a company pension (betriebliche Altersvorsorge): part of your salary goes into a pension product before tax, and the employer must add at least 15% (for contracts since 2022). Before signing private pension contracts, get independent advice, for example from the Verbraucherzentrale.

Pension, residence and citizenship: what foreigners should know

The 45+ rule for a first work-based residence permit

If you're 45 or older and getting a skilled-worker residence permit (§ 18a or § 18b AufenthG) for the first time, the law requires proof that you'll be provided for in old age. There are two ways:

a salary of at least €55,770 gross per year (2026 threshold, adjusted annually);
or proof of adequate retirement provision: pension entitlements in Germany or abroad, private pension contracts, savings, property. The authority assesses individually whether it's enough.

The same rule applies to some other work permits (for example employment based on experience without recognition). The 45+ rule does not apply to the EU Blue Card.

Permanent residence (Niederlassungserlaubnis)

For the standard settlement permit you need, among other things, 60 months of pension contributions (compulsory or voluntary). Child-raising periods count. For skilled workers it's faster: 3 years and 36 months of contributions, and with a Blue Card as early as 27 months (21 with B1 German). Every month without contributions has to be made up. So self-employed foreigners should consider voluntary contributions or check with the Ausländerbehörde in advance which private pension provision it will accept.

Citizenship (Einbürgerung)

There's no separate pension-contribution requirement for naturalisation. But there are other key conditions:

5 years of lawful residence (the fast track after 3 years was abolished in 2025);
you support yourself and your family without Bürgergeld or social assistance. Exceptions are narrow, for example if you worked full-time for at least 20 of the last 24 months;
B1 German, the "Leben in Deutschland" test, a fee of 255 euros;
health insurance.

Germany has allowed dual citizenship since 2024, but check whether your country of origin permits it.

Mandatory insurance outside social insurance

Motor liability insurance (Kfz-Haftpflicht): mandatory for every car. Without it the car can't be registered.
Dog owner's liability (Hundehaftpflicht): mandatory in several states, and for certain breeds almost everywhere.

Highly recommended

Personal liability insurance (Privathaftpflichtversicherung): the most important voluntary policy. It pays if you accidentally damage someone else's property or hurt someone: flooding the neighbours, breaking someone's phone, hitting a cyclist. Without it you're liable with everything you own. It usually costs a few euros a month, and a family plan covers the whole family. Many landlords ask for it when you sign a lease.
Occupational disability insurance (Berufsunfähigkeitsversicherung): pays if illness or injury means you can no longer work in your profession. The state disability pension is small and strict. The younger and healthier you are when you sign, the cheaper it is.
Household contents insurance (Hausratversicherung): fire, burglary, water damage. Worth it if you own valuable things.

Depending on your situation

Legal expenses insurance (Rechtsschutzversicherung): covers lawyer and court costs, for example in disputes with an employer or landlord. Note there's usually a waiting period (often three months), and existing disputes aren't covered.
Supplementary dental insurance (Zahnzusatzversicherung): public health insurance only partly covers dentures and crowns.
Term life insurance (Risikolebensversicherung): if your family depends on your income or you have a loan.

What you usually don't need

Phone insurance, luggage insurance, all-in-one packages, and endowment life insurance (Kapitallebensversicherung), which often returns less than promised. If someone's pushing a policy on you, especially "a friend who works in insurance", take a break and have the terms checked by the Verbraucherzentrale.

Cancelling without falling into a trap

Most contracts renew automatically. You can usually cancel three months before the end of the insurance year, and after a premium increase or a claim there's often a special right to cancel (Sonderkündigungsrecht). Always cancel in writing and keep proof of sending.

Frequently asked questions

Is health insurance mandatory in Germany?

Yes, for everyone living in Germany. Without it your residence permit won't be renewed and you can't be naturalised.

How many months of pension contributions do I need for permanent residence?

Usually 60 months. For skilled workers 36 months, and with a Blue Card permanent residence is possible after 27 months (21 with B1 German).

What is the 45+ rule for foreigners?

If you're 45 or older and getting a skilled-worker permit under § 18a or § 18b for the first time, you need a salary of at least €55,770 a year (2026) or proof of adequate retirement provision. The rule doesn't apply to the Blue Card.

Official sources

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This article is for information only and is not legal or financial advice. Rates and thresholds apply to 2026 and change every year. Before signing contracts or applying, check the terms with the insurer, the Deutsche Rentenversicherung, the Ausländerbehörde or the Verbraucherzentrale.