Section 2 AStG review
The five-out-of-ten-years test, substantial economic interests in Germany, the 16,500 euro threshold and the period affected. You get the result before you move.
Sec. 2 AStG
Service · Potsdam · Dubai · Legal position 10/2026
Moving to Dubai with crypto
Dubai is the destination for many crypto investors. The tax result, however, is decided in Germany, and before you leave: when German tax residence ends, under section 2 of the Foreign Tax Act (AStG), and in the timing of sales. We handle the German side. Our subsidiary TII MAN GROUP supports you on the ground.
The essentials
- Leaving Germany does not by itself trigger German tax on crypto held as private assets. It is different for business assets (section 16(3a) EStG) and shares in a company (section 6 AStG). Whether section 2 AStG or the destination country's law then applies depends on the individual case.
- Dubai will normally pass the tariff comparison of section 2(2) AStG, because individuals pay no income tax there. If you keep substantial economic interests in Germany, extended limited tax liability can continue for up to ten years.
- In our research no tax treaty between Germany and the UAE has applied since 2022.
- 1 January is the reference date for the asset test. Plan any sale of crypto assets in advance.
- Home and habitual residence decide when German residence ends. Deregistering does not.
What we do for your move to Dubai
Planning sales and holdings
Which lots are tax-free, which are not, and what is the right moment relative to your departure and to 1 January?
Ending German tax residence
Home, habitual residence, deregistration, evidence. Plus the last return as a fully taxable resident.
Documentation and source of funds
A statement of holdings on the cut-off date and proof of where the funds come from. You will need both in Germany and in your new country.
Our article on section 2 AStG sets out the test with sources.
On the ground in Dubai: TII MAN GROUP
Our subsidiary TII MAN GROUP FZCO is based in Dubai and works in English and German. It supports clients with questions on the ground. We handle the German obligations from Potsdam. You have one point of contact for both sides and no information has to be passed between unrelated firms.
More on our offices and the eighteen destination countries: Leaving Germany.
The book on leaving Germany with crypto
12.09.2026
18 countries
Krypto-Steuern und Auswandern (in German)
Exit taxation, holding period and DAC 8, with eighteen destination countries compared, including the United Arab Emirates, and a chapter on extended limited tax liability under section 2 AStG. The book is in German. On Amazon
Questions about moving to Dubai
Do I pay German tax on my crypto when I move to Dubai?
Crypto held directly as private assets normally does not trigger German exit tax under section 6 AStG, because that rule covers shares in corporations. A company structure changes this. The more important rule is section 2 AStG: because Dubai levies no personal income tax, it will normally count as a low-tax jurisdiction, so German tax can continue for up to ten years if you keep substantial economic interests in Germany.
Can I sell my Bitcoin tax-free after moving to Dubai?
Not as a general rule. It depends on whether German tax liability continues after you leave, mainly under section 2 AStG, and on whether the gain is taxable at all, for instance inside the one-year holding period. In our research no double tax treaty between Germany and the UAE has applied since 2022. We run your case before you move.
Is deregistering in Germany enough?
No. What counts is whether you still have a home or habitual residence in Germany. A flat that remains available to you keeps you fully taxable, whatever the residents register says.
Do you support me in Dubai as well?
Yes. Our subsidiary TII MAN GROUP FZCO (tiiman-group.ae) works with clients on the ground in Dubai. We handle the German side from Potsdam and coordinate both.
Responsible for content: Matthias Steger, German certified tax advisor (Steuerberater), nine years as a tax auditor.
Legal position: 11 October 2026. Sources: section 2 AStG, ministry circular of 22 December 2023, BFH IX R 37/21 (all in German). This page is general. Immigration law and UAE tax law are outside our German advisory scope. Where this English text and the German text differ, the German text prevails.
Legal position: 11 October 2026. Sources: section 2 AStG, ministry circular of 22 December 2023, BFH IX R 37/21 (all in German). This page is general. Immigration law and UAE tax law are outside our German advisory scope. Where this English text and the German text differ, the German text prevails.