If you start thinking about leaving Germany, then the question of where to emigrate is of considerable importance. After all, one usually wants to at least maintain the previous standard of living, if possible even improve it. A variety of different criteria must be subjected to a critical, very personal examination. Factors that may seem particularly important here are, for example, the available assets and the risks that threaten when moving, the protection abroad, the infrastructure there and the possibilities for communication in the foreign environment. In particular, the question of health care and the provision for the well-being of one's own children should be given the highest possible priority. In addition, however, tax aspects may also be taken into account. Only in the rarest cases are tax reliefs by moving abroad decisive for such a decision. In addition, you should make sure that you are not subject to exit taxation in Germany, but this is also absent in the new homeland if you intend to move away again.

1. emigrating from Germany, but where to go?

Holiday time is travel time. Many of our readers enjoy the privilege of a stay abroad in order to recover from everyday life with all its requirements. Others know the distance, because in their past they either studied abroad or worked before they returned to Germany. Just the experience with new cultures and a nature unknown to us can help to expand our horizons proverbially. So in this country, many people who have been able to gather these experiences are attracted by the idea of living abroad for at least some time. However, while some in this situation hardly need to worry about the most tempting destination for them (everyone has their own favorites), many others wonder where they could emigrate.

For this reason we dedicate this article precisely to this question: where to emigrate? Here we want to show criteria that should be taken into account when choosing the destination country. There are less tax factors in the foreground than quite practical ones – but ultimately also the tax ones. Because one thing should be clear to everyone: simply packing the suitcases and moving abroad without having comprehensively prepared for this step is not a recommended approach. The why for this results implicitly from our now following considerations.

Where to emigrate – the most popular destination countries of the Germans

If you enter the search query “migrate” in the God-like search engine, as probably many of our readers who have just selected this article, then you will find a number of alternative search terms consisting of a combination of the verb “migrate” and a number of potential destination countries. You guess, here you get a selection of the most popular destination countries offered, because this corresponds to the purpose of the search engine. So let’s see which are probably the most popular destination countries in the German-speaking countries.

Interestingly, there are three Scandinavian countries in the top 4, namely Sweden, Norway and Denmark. This may be a bit surprising, because most Germans spend their holidays in countries around the Mediterranean. So it seems that the assumption that there is a close connection between holiday country favorites and destination countries to emigrate would be erroneous. Another country in the top 3 of this list, namely Canada, seems to confirm this contradiction. The difference is even clearer when one considers the other proposals. New Zealand is even ahead of the traditional emigrant country USA.

At first glance, our neighbor Switzerland may appear in this listing. But if you consider the cost of living there and the fact that, depending on the location, nature and climate hardly differ from those in Germany (with the exception of the Alps and Ticino), then Switzerland should also be considered a remarkable addition to the list. However, this view provides alternative explanations that should now accompany us to understand why and where many Germans prefer to emigrate.

Where to emigrate: Criteria for the country of choice

3.1. Where to emigrate: Wealth factor

So now let’s go into the circumstances that influence the choice of country to emigrate to. In any case, a sufficient fortune with which to build a new life in the new homeland seems to be of central importance in this decision. The times when many Germans in the 19th and early 20th For the first time in the 20th century, they left their homeland because they saw no future under the local conditions, but they have given way to others. Today, especially those who can afford to emigrate. On the one hand, the conditions under which immigration is possible in many countries of the world have become significantly worse. Many countries, especially the USA, demand that you bring sufficient assets to ensure your own financial security. Finally, immigration should not involve any risk of a social case. Of course, this is much easier when emigrating within the EU.

3.2. Where to emigrate: Standard of living factor

3.2.1. Incentives for emigration

However, an increase in quality of life is in most cases at the top of the agenda of those willing to emigrate. Few Germans take it upon themselves to exchange a lower standard of living for that which they were previously able to enjoy in Germany. Such reasons are generally very personal in nature; Let us leave them out here. Rather, we are interested in looking at the imaginary promise that the future life of emigrants will be much more beautiful. Many, very different aspects play a role here. On the one hand, this may go hand in hand with a richer culture and nature in the country of choice. Of course, this also means an adventure. On the other hand, the political environment may also play a role. But the prospect of achieving business success abroad may also be relevant.

3.2.2. Risks that may affect future living standards

But what some people ignore is personal security in a completely different way. Because if you emigrate to countries where crime plays a major role in everyday life, the decision to emigrate, especially in relation to where to go, may one day turn out to be a serious mistake.

But political instability can also have significant consequences. Freedom oppression, unrest, even civil war, in some countries of the world these are real risks. The mere possibility that a state could collect its own assets is enormously relevant in the decision to emigrate. Under certain circumstances, such measures may only apply to very specific nationals.

But natural environmental risks can also prove to be significant. For example, if you dream of living under palm trees in the Caribbean, you should take a look at the annual hurricane season and throw one on the nearest mountains – they could one day unpleasantly recall themselves as active volcanoes. Of course, one should consistently also consider other natural forces. Against the dangers of infection with foreign pathogens one should also be protected, but at least be informed about it.

Such risks are never completely excluded even in supposedly safe countries, such as Scandinavia. However, there the probability of regretting the departure due to the previously mentioned circumstances is significantly lower. For this, there may be other dangers lurking, which can affect the standard of living with similar force. For example, this could be the solitude that occurs when the nearest neighbor lives more than 20 km away. Also the psychological burden of a long, cold, dark winter should hardly be underestimated.

3.3. Where to migrate: factor infrastructure

3.3.1. Health infrastructure

Another important aspect, which is somehow related to the standard of living, is the infrastructure you expect to get to where you emigrate. This factor is primarily related to health care. Indirectly, however, this also goes hand in hand with the financial possibilities that must be taken into account if proper health care that meets all requirements is only possible via private protection. In addition, the own predisposition to diseases also plays a role here. Especially with increasing age, the risk of dependence on adequate medical care increases. This can already fail if you can hardly exchange ideas with local doctors and other medical staff (including nurses). The distance to the nearest medical facility can also prove to be extremely long precisely when the distance should be as short as possible.

3.3.2. Transport and communication infrastructure

Another sub-item in terms of infrastructure is connectivity with the rest of the world in general and with the old homeland in particular. If you still have friends and relatives in Germany or elsewhere in the world, with whom you stay in contact or even want to visit more often, then the transport connections should be considered. Where you want to emigrate depends on how quickly and reliably you can establish contact with friends and relatives. As a rule, one thinks first of easily accessible airports and the shortest possible flight times. However, depending on where you emigrate, rail and road connections or ports can also be important. Even the connection via the Internet is relevant here, even if Germany is hardly a model in terms of the expansion of the Internet infrastructure in international comparison.

3.3.3 Schools and universities

If you want to emigrate with children, then the infrastructure at kindergartens, schools and universities should be as optimal as possible. Because investing in the future of their children should also be a top priority. As a precautionary measure, one should also consider what effects a relocation could have for the children. Will school qualifications be recognised in the new home country?

3.4. Where to emigrate: Language factor

For many who want to emigrate, communication with the local population is often less important as a factor in choosing a destination country. But especially for younger people, who are usually still relatively easy to learn a foreign language, this criterion should also play a role. After all, learning a new language gives you more than just access to other people – a foreign language is the key to other cultures. This expands your own horizon, which can lead to an immense enrichment of your own life. This is one of the outstanding motivations when you start to deal with the question, emigrate, but where?

On the other hand, if you can hardly show an affinity for learning foreign languages, the move to a German-speaking country may also seem a useful alternative. But here too one should be prepared for certain surprises. Depending on the dialect, this can also be a great challenge. At least then you can expect to be understood yourself.

Where to emigrate: Consideration of tax factors

At this point we have to distinguish whether one is subject to the exit tax as a shareholder of a company, or whether one can emigrate without this tax. Regardless of this, the question of the amount of taxes you have to pay after emigrating (no matter where) should also be given its own priority.

4.1.Emigration with Exit Tax

Shareholders of a corporation often face a dilemma in their plan to move abroad, the name of which is exit tax. In doing so, the Federal Republic of Germany only tries to preserve the right it otherwise has to levy taxes on the capital gains of a company. From the point of view of taxpayers, however, the taxation of fictitious profits instead of realised profits can hardly be regarded as an imposition. In any case, shareholders can only come to terms with this if they have sufficient financial resources or if the company valuation shows only a small value for taxation. All others are faced with the question of how they can avoid the exit tax, and as a tax consultancy with special expertise in international tax law, we are of course happy to help.

However, you should also pay attention to the international tax law applicable there when choosing the country to emigrate to. Because if you have managed to avoid the exit tax in Germany, then this topic may still occur again. After all, if you also set up a company in your new home country and want to move from there later, similar taxation mechanisms could apply there, which provide for a taxation of fictitious substrates. Then hurdles of comparable magnitude can suddenly oppose the project to move again. So you should also inform yourself in this regard, in advance, when you first deal with the question of where you want to emigrate.

4.2.Emigration without exit tax

For people who can emigrate without the German exit tax, the answer to where is easier to meet. Nevertheless, they also have to think about this issue if they plan to set up a company abroad for which they may be involved in tax easing later on. Therefore, the choice of a country that knows no obstacles in this regard is highly recommended.

4.3. Where do you pay what taxes?

The final question in this section deals with tax optimization. Even though most people who want to emigrate, who are concerned with the question of where they want to emigrate, prioritize completely different aspects in the answer, this is also an important aspect. Because the claim that in Germany one would pay more taxes than elsewhere is incorrect. It is certainly true that the level of taxation in Germany is comparatively high. But especially in Scandinavia, which is apparently very popular with emigrants, taxes in many areas are still significantly higher than in Germany.

If you want to emigrate, then you can also check whether the potential goals can contribute to a reduction in taxes. In this way, one can ideally combine the advantage of emigration to a country that best meets one’s own expectations of a fulfilled life with tax advantages. At least some dream destinations that lure as natural paradises are also known as tax havens.

Where to emigrate – final thoughts

5.1. Why we publish this article

Normally you would think that a blog post by a renowned tax consultancy firm pursues the goal of winning clients permanently. So when we write an article like this one, it has a side effect. In this way, we may contribute to a reduction in the number of potential clients. This, in turn, can hardly be in our interest. But at second glance we also know that this article is less an advertisement for emigrating in general than a help for all those who have already decided to emigrate from Germany but are still looking for where to go.

5.2. How we can provide support

In any case, we are happy to support you in many tax aspects. Whether in optimizing the taxation of severance payments, avoiding the exit tax or permanent asset protection, to name just three topics, we have the know-how you need when you intend to emigrate. However, the tax advice should be in preparation for this crucial step in your life, so before you put their plan into action. Otherwise, this can later have significant, irreparable financial consequences.

5.3.Taxes are usually only a secondary issue in the question “where to emigrate?”

In addition, we can conclude that one can only approve the “where to emigrate” with a fulfilling answer if one is sure that the new life takes place in an environment that corresponds as closely as possible to one’s own preferences. However, if you have doubts about such a decision, then you should either listen to it or carry out a test, for example, as part of an extended leave. Be aware that such an important decision should be considered long and thoroughly. However, if you lack the courage for such a daring step, you should realize that you are therefore renouncing a treasure of new experiences. Maybe you regret this step for a lifetime.