Moving to Mallorca? German exit tax and its implications
The German Exit Tax is an Issue Especially, But Not Only When Changing Residence.
Every fifth middle-class person in Germany is now toying with the idea of emigrating. This is the result of a survey published in July 2023 by the SME association BVMW. Spain, and Mallorca in particular, are seen by many as an attractive new place to live. However, in this case, the German state asks for payment in the form of exit taxation. It is precisely this tax burden that can have serious implications.
Taxed like a sale of shares
Anyone who moves from Germany to another country is generally affected by the exit tax as the owner of shares in corporations. In exceptional cases, this also applies to partners in partnerships or sole proprietors. The taxation is the same as for a profit from the sale o...