Deregistering from Germany before moving to Paraguay: the right order

By when do you have to deregister, and what does missing it cost?

The obligation to deregister applies to anyone who moves out of a home in Germany and does not take up a new home in Germany. That is exactly what happens when you move to Paraguay. The legal basis is Section 17 (2) BMG: the deregistration must be done within two weeks of moving out and is possible at the earliest one week before moving out. The competent authority is the registration office at your previous place of residence; many offices also offer deregistration in writing or online.

Anyone who lets the deadline pass commits a regulatory offence. Under Section 54 BMG this can be punished with a fine of up to 1,000 EUR. In practice the maximum amount is rarely imposed, but you should not rely on that. The deregistration is free and quickly done, which is why it belongs in the fixed moving plan and not in the "sometime later" category.

Why the deregistration certificate is your key document

The deregistration certificate is the official proof that you no longer have a place of residence in Germany. Abroad it is your most-used piece of paper. It is the standard proof toward your health insurer and the pension insurance that no German residence exists any more, and toward the broadcasting fee. In application and ID matters at the German consulate in Asunción it is regularly required.

It is also the trigger for the special right of termination for ongoing contracts. Internet, mobile phone, gym and utilities can often be cancelled outside the regular term with proof that you are moving abroad and can no longer use the service. That is why you should get several printouts when you deregister, or scan the certificate cleanly, before you leave the country.

• →Proof toward your health insurer and the German pension insurance (Deutsche Rentenversicherung) that no German residence exists any more.
• →Proof at the German consulate, among other things for passport and ID matters.
• →Basis for the special right of termination for internet, mobile phone, gym and utilities.
• →Proof toward the broadcasting fee service (Beitragsservice) that no fee-liable home exists any more.

What happens with your health insurance?

Compulsory membership in statutory health insurance ends when you move your residence or habitual abode abroad (Section 190 SGB V). The deregistration certificate is the standard proof here too. Important for the move to Paraguay: there is no social security agreement between Germany and Paraguay. So your German statutory health insurance pays nothing in Paraguay. From day one you need either an international private health insurance or local Paraguayan cover.

There is one option many people overlook: the entitlement insurance (Anwartschaftsversicherung). With it you pay a reduced premium, get no benefits in return, but secure the right to re-enter the insurance on your return without a new health assessment. Whether and how an entitlement is offered depends on the statutes of your insurer. What matters: an entitlement covers nothing abroad, you always need a real international health insurance in parallel.

The biggest long-term point is the return. Re-entry into statutory health insurance after returning from a non-EU country is not automatic. Without an entitlement there is generally only a right to admission if you take up employment subject to social insurance again. For people from age 55 the re-entry is especially difficult. That is the real risk you should think through before deregistering.

Child benefit, citizen's benefit, driving licence and other consequences

With the deregistration and the move to a non-EU country like Paraguay, several entitlements fall away automatically. Anyone who lets them continue without informing the responsible office risks reclaims and, in some cases, a fine. That is why actively cancelling these benefits belongs in the same plan as the registration office.

With the driving licence the situation is more relaxed, but there is one important step before departure. The German driving licence does not expire through the deregistration, it remains a valid German or EU document. In Paraguay, however, the German driving licence is not recognised. An international driving licence is accepted for up to 90 days. You can only get this international driving licence in Germany, so get it before you leave. Later you can obtain a Paraguayan driving permit on the basis of the German driving licence.

Accounts and securities depots: keep open or close?

No law forces you to close your German account or securities depot when you deregister. Whether a bank continues to serve customers resident in a third country like Paraguay is decided by each institution according to its own business policy. As an experience value from forums and guides: some direct banks and brokers accept a foreign address, others cancel when the residence is outside the EU. This tolerance changes frequently, which is why any blanket list quickly goes stale and is deliberately not printed here.

Two points make sense regardless of the bank. First: keep at least one German account open for the transition. Deposit refunds, tax refunds and final bills need a working account in Germany. Second: report your new tax residency in Paraguay to your bank. This is not a formality at your discretion, it is part of the bank's due diligence obligations. Anyone who "leaves a German address standing" even though they emigrated long ago builds a problem for themselves that becomes increasingly visible with the automatic exchange of information.

The right order step by step

The deregistration is a single appointment, but it does not come at the beginning. You clarify some things beforehand so that you have not slammed a door shut afterwards, and you handle others only with the certificate in hand. This order has proven itself:

• →1. Check your tax situation before deregistering. Anyone with GmbH shares, large fund positions or a German rental property clarifies the exit questions with a tax adviser specialised in international tax law before deregistering. Details on this in the article on the German side of the tax bill.
• →2. Decide on health insurance. Discuss termination, entitlement or conversion with your insurer and, in parallel, take out an international or local health insurance for Paraguay. Especially important from age 55.
• →3. Prepare your account setup. Keep at least one German account open for the transition, and sort out the rest as needed.
• →4. Carry out the move and clearing of the home, so that the move-out date is fixed.
• →5. Deregister at the residents' registration office, at the earliest one week before moving out, at the latest two weeks after (Section 17 (2) BMG). Secure several copies of the deregistration certificate.
• →6. With the certificate, trigger the follow-up steps: inform your health insurer and the pension insurance, cancel child benefit at the family benefits office, cancel the broadcasting fee, use the special right of termination for contracts, report your new tax residency in Paraguay to your bank.
• →7. Before departure, get the international driving licence, because you can only get it in Germany.

CRS: Paraguay and the exchange of information from 2027

An outlook that fits a clean deregistration: Paraguay has committed to making first reports under the automatic exchange of information (CRS) by 2027 (OECD list of commitments, as of May 2026). Until then, Paraguay only exchanges on request. Under CRS, depending on the account holder's tax residency, banks report among other things name, address, country of residence, tax ID, year-end account balance and certain income.

For cleanly emigrated people this is usually a non-event: because Paraguay taxes territorially, foreign income is generally not taxed there anyway. That is exactly why doing it properly pays off. Anyone who really is resident in Paraguay, has updated their bank data and maintains a consistent tax residency has no problem with the exchange of information. It only becomes risky for constructs where someone is deregistered "on paper" but leaves a German address with the bank. How CRS works in detail is covered in the article on the German tax side.

Briefly on Austria: shorter deadline, immediate exit tax

For Austrian citizens, different figures apply. The deregistration under the Registration Act (Meldegesetz) must be done within three days of giving up the home (up to three days before is also possible), at the registration office of the last residence. Breaches can be punished with a fine of up to roughly 726 EUR. The family allowance (Familienbeihilfe) is tied to the centre of life in Austria and ends when you move to a third country.

For tax purposes the most important difference is the exit tax (Wegzugsbesteuerung). Unlike in Germany, there is no minimum shareholding in Austria: for private capital assets, unrealised gains on securities, shares and fund units are captured on departure and taxed at the KESt rate of 27.5 % (Section 27 (6) EStG). When moving to an EU/EEA country, payment in instalments is possible on application; when moving to a third country like Paraguay, the tax is due immediately. The planning therefore has to happen before the move, not after.