For German founders with substantial GmbH ownership, leaving Germany triggers one of the most expensive tax events of their career. The exit tax under § 6 AStG treats relocation as if shares had been sold, even when no money has changed hands. For founders with seven-figure equity, this can mean a tax bill in the millions that must be paid without corresponding liquidity.
This article covers what founders need to know when relocating to Portugal, the United Arab Emirates, or the United States – based on current 2026 German tax law, the new Portugal NHR 2.0 regime, and recent updates to the German Foreign Tax Act.
A founder holding at least one percent of a capital company who leaves Germany is treated as if the shares had been sold at fair market value. Since the 2022 reform, the tax can on application be paid in seven equal annual instalments – interest-free, but generally against security; this applies uniformly to EU/EEA and third countries. The former indefinite, interest-free EU/EEA deferral no longer exists. If the founder returns to German tax residency within seven years, the exit tax is eliminated retroactively.
Since 2024 the reformed regime applies. Crypto gains in Portugal are taxable if held under one year (around 28 %) and generally tax-free after at least one year; personal income from defined occupations is taxed at a flat 20 percent. Portugal remains attractive, but no longer for every founder.
No personal income tax, but since 1 January 2022 there is no longer a Germany–UAE tax treaty (it expired at the end of 2021). German domestic law applies, and substance still matters (183 days, documented local lifestyle). The exit tax applies in full; on application it can be paid in seven interest-free annual instalments, generally against security. Since 2023 a 9 percent corporate income tax applies above 375,000 AED.
The USA taxes on citizenship; a Green Card triggers full worldwide-income taxation. After relocating, federal plus state tax – often 40 percent or more effective. The treaty contains a Saving Clause favoring the USA.
At one percent ownership in a capital company within the last five years (§ 17 EStG). § 6 AStG has no additional value threshold; founders regularly meet the one-percent mark.
Without holding restructuring: 12 to 24 months. With holding setup: three to seven years.
Founders who structure years before relocating save six- to seven-figure amounts. In a complimentary initial consultation, we clarify the right timing – in German, English, Russian, and Italian.
