Full Definition
Exit taxes apply when a high-value taxpayer emigrates. Germany taxes unrealised gains on shares held >1% (§6 AStG). The US charges expatriation tax on worldwide assets for citizens renouncing citizenship. France imposes a departure tax on certain equity holdings. Exit taxes capture appreciation accrued during residency before the taxpayer moves to a lower-tax jurisdiction. Advance planning (3–5 years) can legally reduce exposure.
Global Rates at a Glance
France
30%
Capital Gains Tax
Germany
26.4%
Capital Gains Tax
United States
20%
Capital Gains Tax
United Kingdom
24%
Capital Gains Tax
Singapore
0%
Capital Gains Tax
Portugal
28%
Capital Gains Tax
Switzerland
0%
Capital Gains Tax
Key Facts for Expats & Digital Nomads
CGT planning is most impactful for those selling businesses or significant equity. Establishing residency in a zero-CGT jurisdiction (UAE, Singapore, New Zealand) before a major exit can be highly valuable — but requires genuine relocation well in advance. Exit tax rules mean you may need to crystallise gains before departing Germany, the US, or France.
Frequently Asked Questions
What is Exit Tax?
A tax triggered when a taxpayer leaves a country, calculated on unrealised gains in assets. Exit taxes apply when a high-value taxpayer emigrates. Germany taxes unrealised gains on shares held >1% (§6 AStG). The US charges expatriation tax on worldwide assets for citizens renouncing citizenship. France imposes a departure tax on certain equity holdings. Exit taxes capture appreciation accr.
Which countries have the lowest Exit Tax?
Zero CGT countries: UAE, Singapore, New Zealand (most assets), Switzerland (most assets), Belgium (most assets), Hong Kong, Cayman Islands. Mid-range: UK 10–20%, US 0–20% long-term. France applies a flat 30% (PFU).
How does Exit Tax affect expats and digital nomads?
CGT planning is most impactful for those selling businesses or significant equity. Establishing residency in a zero-CGT jurisdiction (UAE, Singapore, New Zealand) before a major exit can be highly valuable — but requires genuine relocation well in advance. Exit tax rules mean you may need to crystallise gains before departing Germany, the US, or France.
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Disclaimer: This information is for educational purposes only and does not constitute tax advice. Tax laws change frequently. Consult a qualified tax professional before making any decisions.