Like that of other states, German tax law is familiar with the concept of so-called de-engagement taxation. It always takes effect when the German Treasury loses its tax substrate – especially hidden reserves. Taxes on departure should record these assets “final”, i.e. ensure taxation before the German tax law is possibly lost forever.
In this article we take a look at the concrete taxes when moving out and highlight this especially with regard to emigration to Dubai. Because here entrepreneurs in particular can avoid the so-called exit tax.
1.Tax on departure: background to the taxation of emigrants
More and more people are thinking about emigration, for example to Dubai. The reasons for this are manifold and concern, for example, the weather, but often also the lower tax burden abroad.
Like other states, Germany taxes certain constellations in which private individuals and entrepreneurs leave the country. The so-called asset growth, i.e. the hidden reserves that are (can) be found in certain economic goods, is always taxed. The idea behind the taxes when moving away is that the entrepreneur or the private person
This article does not replace tax or legal advice in an individual case. Facts, current law, jurisdiction, documentation and implementation remain decisive.