Those who want to emigrate to Switzerland without having to pay exit tax can use various options. One of them is particularly attractive if you only want to live in Switzerland for a few years and then return to Germany. Under this condition, a stay of almost 18 years in Switzerland can be designed without the exit taxation becoming relevant. However, certain conditions have to be met in order to use this design. Nevertheless, this option is usually relatively easy to fulfill. In any case, in situations where a permanent relocation of residence abroad is planned, more complex solutions are needed.

1. Without an exit tax to Switzerland – introduction

Switzerland is a place of longing for many Germans – and has been for several generations. In the past, neutrality, banking secrecy and watches of the highest quality as well as “Schoggi” and skis attracted – not to mention the almost immeasurable wealth of delicious cheeses. But even today, everyone can feel lucky to spend the weekend in an idyllic chalet in the magnificent Swiss Alps. And anyone who drives out of the Gotthard tunnel in Ticino in the middle of winter and already perceives a mild, Mediterranean touch on Lake Lugano as a foresight of the approaching spring is already a lot closer to heaven.

But the economic conditions from which this modern fairy-tale land emerged were anything but rosy in the past. The many disputes that the Swiss had to fight with the Habsburg Empire, whose main castle is actually located in the canton of Aargau, were so numerous that this sustained the desire for neutrality – notably a neutrality that was always decidedly defensive. In addition, Switzerland is actually struggling with the disadvantage of not having unhindered access to the sea. Nevertheless, Switzerland in the course of the 20. This is a wonderfully developed century, so that many Swiss are proud of their homeland.

Who now wants to emigrate from Germany to the comparatively small Switzerland with its many, also tax-often very independent cantons, must ask himself whether this may succeed even without an exit tax. Because who is significantly involved in a GmbH in this country, threatens exactly this. And since the beginning of 2025, there has been exit taxation even for people who have significant fund holdings.

2. How the Exit Tax was introduced

Before we approach the set goal, namely the successful, tax-neutral departure to Switzerland, we start with a consideration of the exit tax. The exit tax is a tax that the legislature has introduced to secure the taxation right of the Federal Republic. Whoever is involved in a German company and sells it, pays taxes on the profit. However, those who move abroad before the sale and only then make the sale would be exempt from the taxation of profit in Germany without an exit tax.

Incidentally, that was the trigger that led to the introduction of the exit tax. Helmut Horten, the department store king of the 1960s, had emigrated before the sale of his department store chain – significantly also to Switzerland. As a result, he was taxable in Switzerland instead of Germany at the time of the sale. For Helmut Horten, this was worthwhile in terms of tax, because taxes in Switzerland were significantly lower at that time. There is still a limited tax liability in Germany. However, the provisions of the double taxation agreement (DTA) between Switzerland and Germany must also be observed. This means that only Switzerland can tax the profit from the sale of the company shares.

3. Basics of the Exit Tax

Consequently, the German Treasury decided shortly before entrepreneurs move abroad to determine their company value and to tax the potential profit. The fact that, on the one hand, a purely fictitious profit is determined, which is based on a flat-rate valuation in the context of the simplified income value procedure, and that, on the other hand, taxes are incurred, although no liquidity inflow takes place, is the flip side of the exit tax. In particular, the lack of a cash inflow means that you have to pay the exit tax from net overtaxed private assets. In addition, the company valuation usually leads to a significant company value, so that a correspondingly high tax amount is to be expected.

However, this only applies if you move abroad permanently. Anyone who wants to live abroad only temporarily, however, is spared the exit tax. This is regulated accordingly in § 6 (3) AStG. If you can guarantee that there is a return intention, it is possible to emigrate abroad without an exit tax, including to Switzerland. A return intention must be planned within a period of a maximum of seven years for the tax office to waive the exit taxation. A one-time extension of the period of a further five years is also possible upon request. Overall, therefore, according to German tax law, a departure without an exit tax is possible for twelve years, if a return intention exists.

4. Moving to Switzerland without an exit tax: our design

4.1. DBA makes it possible to move to Switzerland without an exit tax

Anyone who wants to live with the Swiss for more than twelve years will look for other ways to emigrate tax-free. And in fact, there is another option to use another extension before returning to Germany. However, this is less a regulation that is enshrined in the tax law, but rather one that contains the DTA. More specifically, Article 4(4) of the DTA provides for this derogation. It states that persons who were taxable without restriction in Germany for at least five years before moving to Switzerland can continue to pay taxes in Germany. However, this option is temporary. The period begins with the year of departure and ends in the fifth year after the year of departure.

If you continue to be considered a taxable person in Germany after leaving, then there will be no loss of the taxation right of the Federal Republic. Ergo, the tax office can not collect an exit tax. And after expiry of this first period, one can therefore add the twelve years that are free of excise tax according to the provisions of § 6 (3) AStG for temporary stays abroad.

4.2. Conditions for moving to Switzerland without exit tax

The advantage of applying these three regulations is that you can live in Switzerland for a total of almost 18 years without having to pay an exit tax. The disadvantage is that in the first years you still pay taxes in Germany instead of Switzerland. In addition, this regulation is excluded for Swiss nationals. In fact, the wording of the DTA requires the absence of this feature as a condition for being able to use optional taxation in Germany. Furthermore, the provisions of the DTA do not apply if the person concerned is employed in Switzerland without being involved in the company for which he works. So you also have to pay attention to this special feature and comply with it if you want to stay in Switzerland for more than twelve years without having to pay exit tax.

5. Without an exit tax to Switzerland – Conclusion

The exit tax is a real obstacle for many entrepreneurs in Germany who are drawn abroad. Switzerland in particular has gained an international reputation as a destination for an upscale lifestyle. Tax advantages are another argument per Switzerland, albeit more valid in certain cantons. No wonder then that the number of emigrants who move from Germany to Switzerland is quite high.

Those who want to emigrate to Switzerland without an exit tax can use various options. Some of them we have presented in this post. Two of them are conditional on a later return to Germany. So anyone who wants to leave Germany for good needs other solutions. Nevertheless, the conditions required for a tax-free emigration are easier to meet if you are only temporary in Switzerland than if you emigrate without intention of return. Of course, we advise in every respect to avoiding the exit tax and develop an individually suitable design for you.

Conversely, we also recommend the design options discussed here when moving to other countries. At least when emigrating to Spain, this is an alternative that may be appropriate.