Leaving Germany for Tax Purposes 2026: Exit Checklist

You move to Portugal, Spain, the Baltic, or the US. Tax-wise: your unlimited German tax liability ends, but not without a closing review. Especially those with company shares or larger ETF portfolios must check exit tax before leaving — and since 2025 a new hurdle applies to ETFs. This guide covers the critical checkpoints.

In short: Exit checklist: (1) Exit tax check (GmbH shares > 1% or ETFs > €500,000), (2) Deregister at the Einwohnermeldeamt, (3) Final tax return for the departure year, (4) Limited tax liability for remaining German income (rental). EU deferral of exit tax interest-free; third country: 7 annual instalments.

Phase 1: End of tax residency

You remain unlimitedly tax-liable in Germany while you have either a residence or a habitual abode.

• Residence given up: no apartment available to you
• No habitual abode: under 6 months/year in Germany

With departure, unlimited tax liability ends. You pay German tax only on German income (limited tax liability under §49 EStG).

Phase 2: The exit tax (§6 AStG)

The biggest stumbling block — and since 2025 relevant to many more people.

Who is affected?

• Corporate shares (GmbH, AG) over 1% holding
• Since 2025: ETF and fund holdings with value over €500,000

What happens?

The Finanzamt pretends you sold the affected assets on departure day. Taxes the notional gain (current value minus acquisition cost) at 25% capital gains tax + 5.5% solidarity surcharge.

Example

ETF portfolio: current value €620,000, acquisition cost €420,000:

• Notional gain: €200,000
• Exit tax 25% + 5.5% Soli: ~€52,750

Deferral on EU/EEA move

• Automatic interest-free deferral, no actual payment
• Due only when you actually sell
• Return to Germany within 5 years: exit tax cancelled entirely

This EU deferral is a major relief — without it, moving with capital would be nearly impossible.

Payment on third-country move (USA, Switzerland, UK, etc.)

• No EU deferral
• Instalment payment: 7 equal annual tranches (since 2022)
• With interest

Avoidance

• Stay well under the €500k ETF limit (rebalance, sell beforehand)
• Consider leaving before major wealth accumulation
• For GmbH shares, pre-departure restructuring is possible (Steuerberater)

Phase 3: Administrative steps before departure

Deregister at the Einwohnermeldeamt

• In person with ID card
• Keep the deregistration certificate — proof for Finanzamt, health insurance, banks
• Possible at earliest 1 week before departure

Inform the employer

• If the employment continues: tax gets complex (dual tax liability)
• If terminated: normal departure

Finanzamt

• Informally notify departure to avoid misunderstandings
• Consider a “final” ELSTER entry

Health insurance

• GKV ends with deregistration
• In EU/EEA: S1 form for continuation
• In third countries: private lawyer-preferred insurance (DKV, DR-WALTER, etc.)

Bank

• Account can usually stay (especially if you still have DE income)
• Ask whether a “non-resident” account is appropriate

Insurance

• Private pension, Riester, Rürup: usually stay, check continuation
• Life insurance: review contract
• Liability/home contents: adjust or cancel

Phase 4: The final tax return

For the departure year you submit one more German tax return.

Period

• Unlimited tax liability for the period in Germany
• Limited tax liability for the period after departure (if any remaining DE income)

The basic allowance

• Pro-rated: departure June 30 = 6/12 × €12,084 = €6,042 allowance
• Applied only to unlimited-liability phase

Exit tax assessment

• Comes alongside the normal tax return
• Exit tax is set in the departure year, but (EU) immediately deferred

Deadline

• Normal: July 31 of the following year
• With a Steuerberater: end of February the year after

Phase 5: Ongoing — limited tax liability

If you still have income from Germany (e.g. rented property, capital gains, occasional work):

Typical sources

• Rented property: fully taxable in DE (Anlage V), see Rental income tax
• Capital gains from German accounts/brokerage: only for DE-issued securities
• Business income from a DE operation (e.g. ongoing freelance contract): limited-liability taxable

Peculiarities

• No basic allowance for limited taxpayers (except EU-optional assessment for predominantly DE income)
• No joint filing
• Double-tax treaty governs what’s taxed where — rental usually stays in DE

Annual obligation

• Tax return by June 30 (longer deadline for limited-liability taxpayers)
• Anlage V for rental, Anlage KAP for DE capital gains

Special case: short-term abroad

For a planned return within 5 years:

• Tax liability still ends on residence termination
• Exit tax reversed on return within 5 years
• Often cheaper to keep residence (sublet, family lives there) — then unlimited tax liability doesn’t end

Work out individually before the move.

Related topics

• First tax return as an expat — the reverse path (moving to Germany)
• Rental income Anlage V — for retained rental property
• Divorce and tax — when departure intersects with separation

Common mistakes

1. Exit tax discovered only after the move. At >€500k ETFs it stings. Calculate 6 months ahead.
2. Not deregistered at the Einwohnermeldeamt. The Finanzamt still assumes DE residence, unlimited liability continues.
3. Final tax return forgotten. The departure year must be filed, even if partial.
4. Limited-liability rental income not reported. The Finanzamt catches up — with late surcharges.
5. Started without a Steuerberater on exit tax or DBA situations. For five-figure amounts, essential.

How Restio helps

A move abroad is a large project with many parallel threads. Restio structures it:

• Departure checklist — Restio creates a personalised list of all tax and administrative to-dos, based on your profile.
• Exit-tax calculator — enter ETFs/capital holdings, Restio shows if you’re above the €500k threshold and the potential exit tax.
• EU deferral guide — concrete steps to secure the interest-free deferral.
• Limited-liability tracker — for remaining DE income, Restio assists with the annual mandatory return.
• Instant answers — “Does my parents’ place count as residence?”, “What if I’m gone only 3 years?”, “DBA DE-Portugal for my rental?” — in English or German.
• Steuerberater referral — exit tax and complex DBA cases are unavoidable; Restio routes to specialists.

Emigration isn’t a leap into the unknown — but it’s not a walk either. With a clear plan 3-6 months before departure, everything runs without unpleasant surprises.