German Exit Tax Calculator (Wegzugsteuer)

Exit tax — Wegzugsbesteuerung in German — is a tax on unrealized gains that can apply when you leave Germany. Even though you haven't sold anything, Germany treats the move as if you had, and taxes the difference between what your assets are worth today and what you originally paid. It's governed by §6 of the Foreign Tax Act (Außensteuergesetz, AStG) for company shares, and by §19(3) of the Investment Tax Act (Investmentsteuergesetz, InvStG) for investment funds since 2025.

Exit tax applies if two conditions are met: first, you've been subject to unlimited tax liability in Germany (unbeschränkte Steuerpflicht) for at least 7 of the last 12 years. Second, you hold qualifying assets — either a stake of at least 1% in a corporation (such as a GmbH or AG), or investment fund shares where your total acquisition cost is at least €500,000 or you hold more than 1% of the fund. Real estate is not subject to exit tax when leaving Germany.

Before 2025, exit tax only applied to shareholders in corporations — primarily founders and major investors in companies. From January 1, 2025, the Jahressteuergesetz 2024 extended exit tax to investment fund shares, including ETFs. If your total fund acquisition costs exceed €500,000, your unrealized gains may now be taxed when you leave Germany. This is a significant change that affects a much broader group of expats than the original rule.

Yes. You can apply to pay the exit tax in 7 equal annual installments rather than as a lump sum. This applies regardless of whether you're moving to an EU/EEA country or elsewhere. However, the tax authorities typically require you to provide security (Sicherheitsleistung) for the deferred amount. It's also worth knowing that certain events — such as selling the assets or, for funds, receiving distributions exceeding 25% of the unit value — can trigger the full remaining amount immediately.

Germany treats your departure as a fictional sale of your shares at fair market value. The gain — the difference between today's value and what you originally paid — is taxed using the partial income method (Teileinkünfteverfahren): only 60% of the gain is taxable, at your personal progressive income tax rate. If you don't have a formal valuation, the tax office may use the simplified earnings method — your company's average annual profit over three years, multiplied by 13.75. The resulting tax depends on your other income in the departure year, since the gain is added on top and taxed at your marginal rate.

For investment fund shares (including ETFs), the gain is taxed at the flat 25% capital gains rate (Abgeltungsteuer) plus solidarity surcharge. A partial exemption (Teilfreistellung) applies before the tax is calculated: 30% of the gain is exempt for equity funds, 15% for mixed funds, and 0% for bond or money market funds. Any Vorabpauschale (advance tax) already paid on the funds in prior years is subtracted from the gain to avoid double taxation. This rule applies from January 1, 2025 for funds with acquisition costs of at least €500,000.

No. Leaving Germany does not trigger a tax event on property you own. Real estate is not covered by the exit tax rules under §6 AStG or the 2025 fund extension. However, if you sell a property within 10 years of purchasing it (the Spekulationsfrist), the gain is taxed at your personal income tax rate — regardless of where you live at the time of sale. If you've held the property for more than 10 years, any sale is tax-free.

If you re-establish unlimited tax liability in Germany within 7 years of leaving — extendable to 12 years if you can demonstrate compelling professional reasons — the exit tax is reversed. You won't owe it, provided you haven't sold the relevant assets in the meantime. This return clause applies to both company shares and investment fund shares.