Exit Tax
Exit tax on ending residency
Some countries (Germany, France, Norway, the Netherlands) charge a tax when you leave and stop being a resident — on the unrealized gain of assets. It must be accounted for BEFORE relocating.
- What it is
- A tax some countries levy when you leave their tax residence
- What it is levied on
- Unrealised gains on assets — as if you had sold them on departure
- Where it exists
- Germany, France, Norway, the Netherlands and others
- When to take it into account
- Before the move: it is calculated at the moment of the change of status
- Can be planned
- Yes: calculate it in advance together with the change of residence
In plain words
Exit tax is a tax some countries levy on a person when they cease to be a tax resident. The logic is this: the state “fixes” the increase in the value of your assets at the moment of departure and taxes it as if you had sold everything, even if you have actually sold nothing (an unrealised gain).
Such a tax exists, for example, in Germany, France, Norway and the Netherlands — and the list of countries is growing. It concerns above all valuable assets: stakes in companies, shares, sometimes real estate. For the state the point is to stop gains accumulated over years of living in the country escaping tax simply through a change of residence before a large sale.
The conclusion for the client is straightforward: exit tax is taken into account BEFORE the move, not after. A change of tax residence can save on future sales, but if there is an exit tax on leaving, that saving is partly or fully eaten up. That is why the move and large transactions are planned together, with all taxes calculated at every step.
Where it matters
What matters about exit tax
- Unrealised gain
- Stakes and shares
- Sometimes real estate
- Germany, France
- Norway, the Netherlands
- The list is growing
- On leaving residence
- At the moment of departure
- Calculated before the move
- To stop gains escaping
- Eats up the saving
- Planned in advance
How to account for exit tax
- 01Assess the assets and the gain
- 02Check the country’s exit tax
- 03Compare relocation scenarios
- 04Plan the transactions and timing
- 05The optimal exit
What you need to know
- Exit tax is levied on leaving tax residence
- It taxes unrealised gains on assets
- It exists in Germany, France, Norway and the Netherlands
- It concerns above all stakes, shares and valuable assets
- It is taken into account BEFORE the move, not after
Common mistakes
- Changing residence without calculating exit tax
- Planning the move after deciding to sell
- Assuming a second passport removes exit tax
- Forgetting about large stakes and shares
- Not taking CFC rules into account together with the exit
What this means for a BRIDGES client
We calculate exit tax before your move: how much the state will take on your departure, whether the change of residence pays off once this tax is included, and how to order the steps so that the overall tax is minimal. You make the decision with the full picture.
Frequently asked questions
01 /What is exit tax?
A tax some countries levy when you leave their tax residence — on unrealised gains on assets, as if you had sold them at the moment of departure.
02 /Which countries have an exit tax?
Germany, France, Norway and the Netherlands, for example. The list of countries with such a tax is gradually growing, so it is checked for the particular jurisdiction.
03 /What exactly is the tax levied on?
Above all on the increase in value of stakes in companies, shares and sometimes real estate — assets that have accumulated gains during your years of residence.
04 /Does a second passport remove exit tax?
No. Exit tax is tied to tax residence, not citizenship. A passport does not cancel it by itself.
05 /When should it be calculated?
Before the move. Exit tax arises at the moment the status changes, so it must be planned in advance, together with large transactions.
06 /Can it be reduced?
Sometimes — through a sensible order of steps and timing, and deferrals or reliefs where they exist. But only when planned before leaving, not after.
See also
Read next
This material has undergone editorial review by BRIDGES.
Planning a move and a sale?
We will calculate exit tax before the change of residence and show the scenario in which the overall tax is lowest.