Most investing advice in Germany doesn't apply to you.

Technically yes, but it's financially punishing. EU-domiciled ETFs are classified as PFICs (Passive Foreign Investment Companies) under IRS rules. PFIC gains are taxed as ordinary income at rates up to 37%, with additional interest charges — eliminating the long-term compounding advantage you'd be counting on. Most US expats who understand PFIC rules avoid EU ETFs entirely.

A Passive Foreign Investment Company is any non-US fund where 75% or more of assets are passive (like stocks or bonds), or 50%+ of income is passive. Nearly every EU-domiciled ETF, index fund, and UCITS vehicle qualifies. The IRS imposes a punitive default tax regime on PFIC gains: no preferential long-term capital gains rate, plus an interest charge calculated as if you had earned the income evenly over your holding period.

Yes. Direct ownership of physical real estate — including German investment property — is not a PFIC under any IRS interpretation. Property generates rental income, appreciation, and German tax deductions (AfA depreciation) while remaining fully outside the PFIC regime. This makes it the primary wealth-building instrument for US citizens in Germany.

Yes. US citizens must file a Form 1040 with the IRS regardless of where they live. The US-Germany tax treaty generally prevents double taxation — you can claim the Foreign Tax Credit for German taxes paid. You may also have FBAR (FinCEN 114) and FATCA (Form 8938) obligations if your German accounts exceed certain thresholds. Working with a cross-border tax advisor is strongly advisable for this.

Yes, and it's one of the more tax-efficient options available. Rürup (Basisrente) contributions are deductible in Germany up to ~€26,000/year, reducing your German taxable income significantly. The US-Germany tax treaty provides some protection, though the treatment can be complex — a qualified cross-border tax advisor should review your specific situation before you commit.

Keep them — this issue only affects EU-domiciled funds. US-listed ETFs (like those on NYSE Arca via Vanguard, BlackRock iShares, etc.) are not PFICs because they're registered in the US. The challenge is that many German brokers don't offer access to US-listed ETFs due to EU PRIIPs regulations. This is the core frustration: you can hold the US version legally, but accessing it from Germany requires some broker research.