[earcar]

That is refreshing to hear. Unfortunately I can't get out because of exit tax, an unrealized capital gains tax for the privilege of leaving the country. That is way worse than what I mention in this post and will get its own post soon.

[tene80i]

You phrase this as if it’s absurd. Why should it be possible to offshore your future capital gains without paying an exit tax? You live in a country with a tax system that assumes people pay into it.

[bloppe]

Unrealized capital gains taxes generally are a bit absurd, but I can see how the state would feel forced to do it if you're leaving. Seems like there should be some way to get a registered agent or something to keep the old company legally "in Germany" while you leave, but idk

[user_of_the_wek]

You can avoid being taxed on unrealized gains by realizing them first ;)

[ghusto]

It is absurd to be taxed on _unrealised_ gains, even more absurd to hold you hostage over it.

[ExpertAdvisor01]

You can delay it until the disposal of your shares , if you move within the Eu

[ccozan]

That is nothing: wait until you want to _close_ a company in Germany :)

[wink]

I'm wondering what the problems can be because I've not experienced that (or heard it first hand).

[dgellow]

Is it different from the tax you would face if you just realize your gains?

[anaisbetts]

The exit tax doesn't apply to "gains", it applies to the "value of your company" which is calculated in a way that often means you will owe thousands or even millions in money you don't have, and at no time had.

[lazyasciiart]

Yes - the value of your company is the gain. It is the money you would have if you sold the whole thing.

[procaryote]

It's only a gain if you sell.

Selling a company and paying tax on the profit in tax is a completely different proposition from paying tax on hypothetical profit you haven't made (and might never make) just because you want to move.

[lazyasciiart]

That's what unrealized means. Gains you haven't got because you haven't sold.

[procaryote]

and if we started taxing them across the board, no one would dare hold stock

[dgellow]

Sounds indeed pretty terrible…

[jandrewrogers]

Most unrealized gains are a notional value, the realizable gains are often much smaller. The act of realization can cause a crash in value.