Leaving Germany
The exit tax everyone worries about generally does not apply to crypto held directly. The things that do catch people are quieter: a dwelling never quite given up, a sale timed a fortnight too early, and years left open behind them.
- Section 6 AStG targets substantial shareholdings, not crypto held directly in private hands.
- Liability ends when residence and habitual abode genuinely end — availability of a dwelling is enough to continue it.
- Extended limited liability under section 2 AStG can follow you for up to ten years.
- Departure does not close the years in which you were resident.
- Note: the documentation must exist before you leave. Afterwards it is reconstruction.
What section 6 AStG does and does not catch
The most persistent misconception in outbound cases.
Section 6 of the Foreign Tax Act treats the end of unlimited tax liability as a deemed disposal of shares in corporations where the holding reaches the relevant threshold. The unrealised gain is taxed even though nothing has been sold.
Bitcoin, Ether and comparable assets in self-custody or on an exchange account are not shares in a corporation. Someone leaving Germany with a private crypto portfolio is generally not caught by section 6.
The structure changes that completely. Where the crypto sits inside a GmbH and you hold the shares, section 6 attaches to those shares — and the value of the company reflects the crypto. Structures built for one purpose regularly create an exit problem that would not otherwise exist.
What this means before you build a structure
Contributing crypto to a company can be attractive while you stay. It is considerably less attractive if departure is on the horizon, because it converts an asset outside section 6 into one inside it. Where emigration is a realistic option within a few years, that belongs in the decision from the outset rather than being discovered later.
When liability actually ends
Not on the date you deregister. On the date the facts change.
The dwelling that stayed available
A residence under section 8 of the Fiscal Code exists where you keep a dwelling in circumstances suggesting you will retain and use it. A flat left furnished and available, a room kept at a family property, a house not let out — any of these can keep unlimited liability running long after deregistration.
Selling too early
A disposal made while you are still resident is taxable in Germany, whatever the plan was. Where a sale is intended after departure, the order of steps is not a formality — it is the whole point.
Residence nowhere
Leaving Germany without establishing genuine residence anywhere creates its own problems: no treaty protection, no certificate of residence, and a weak position if Germany asks whether you really left. A perpetual traveller arrangement needs more substance than a stamp collection.
Coming back too soon
A short absence followed by a return invites the question whether liability ever ended. Where the gain realised abroad was substantial, expect that question to be asked.
Extended limited liability
The provision that surprises people who thought they had finished with Germany.
It applies to German nationals who were subject to unlimited liability for at least five of the preceding ten years, who move to a low-tax jurisdiction, and who retain substantial economic interests in Germany. Where it applies, German-source income remains taxable for up to ten years after departure — on a broader definition of German source than ordinary limited liability uses.
Whether a destination counts as low-tax, and whether your remaining interests are substantial, are both technical tests. Neither is answered by intuition.
It does not make foreign-source income taxable in Germany, and it does not by itself catch gains on crypto held abroad after a genuine departure. Its practical bite is on German business interests, German property and comparable connections left behind.
- Sec. 6 AStGdeemed disposal of substantial shareholdings
- Sec. 2 AStGextended limited liability, up to ten years
- Sec. 8 AOresidence: a dwelling kept and used
- Sec. 9 AOhabitual abode: more than six months
- Sec. 23 EStGdisposals while still resident stay taxable
- Sec. 90(2) AOenhanced duty for cross-border matters
We advise on eighteen destination countries from our own practice, with offices in Barcelona and Dubai. The assessment always covers both sides — leaving well is only half of arriving well.
The years you leave behind
The point most often overlooked, and the one that causes the most trouble later.
Departure ends liability going forward. It does nothing to years already elapsed. Where crypto gains went undeclared while you were resident, those years remain assessable until the period expires — ten years for evasion, and the clock does not start until the return was due. Living abroad does not run that period down faster.
DAC 8 reporting is tied to the years in which the transactions occurred and the residence you had then. A provider reporting on a period during which you were resident in Germany sends that data to Germany, whether you moved to Lisbon or Dubai in the meantime.
A voluntary disclosure remains possible from abroad, and it is often simpler than clients expect. What it is not is available indefinitely. Voluntary disclosure
Choosing a destination
Four questions we work through, in this order.
Can you actually establish residence there?
Visa, minimum presence, local registration, and whether your family situation permits it. A tax regime you cannot access is not a plan. This comes first because it eliminates most shortlists quickly.
How does that country treat crypto gains?
Some exempt them, some tax them as capital gains, some distinguish by holding period or by trading frequency. Ask also whether the treatment is statutory or administrative practice — practice can change without a transitional rule, in any country.
What does the treaty with Germany say?
Which state may tax what, and the tie-breaker if both consider you resident. This determines what German liability, if any, survives your move — and whether section 2 AStG is in play.
What has to be documented before you go?
Acquisition evidence for the whole portfolio, exports from every platform, the address list, and a clear record of when the German dwelling ended. Reconstructing this from abroad is possible and expensive.
Questions and answers
Does Germany charge exit tax on crypto?
So I can simply leave and sell tax free?
What is extended limited tax liability?
Do my earlier years close when I leave?
Which destination is best?
How long does this take to plan?
Legal position: 25 August 2026. Sources: sections 2, 6 of the Foreign Tax Act; sections 8, 9, 90 of the Fiscal Code; section 23 of the Income Tax Act; the applicable double taxation treaty in each case.
The law of the destination country is governed by that country and requires advice there; we coordinate it. This page is not advice on an individual case. Where this English text and the German version differ, the German version governs.