Wegzugsbesteuerung § 6 AStG 2026: Stundung and Return Rule

What is the Wegzugsbesteuerung under § 6 AStG?

The Wegzugsbesteuerung under § 6 Aussensteuergesetz (AStG, German Foreign Tax Act) treats the Wegzug of a person subject to unlimited German tax liability holding at least 1 % in a domestic or foreign corporation as a deemed disposal of those shares at fair market value - even though no actual sale has taken place. § 6 AStG creates the fiction; the amount of the taxable gain is then measured by § 17 EStG (fair market value minus acquisition costs). The rule secures the German tax authorities' access to the value increase that arose during the period of German tax liability, preventing shareholders from shifting silent reserves abroad tax-free and selling in a low-tax jurisdiction.

The trigger is the end of unlimited tax liability in Germany: giving up Wohnsitz (domicile, § 8 AO) and gewoehnlicher Aufenthalt (habitual residence, § 9 AO). The gratuitous transfer of shares to a person resident abroad also triggers the tax (§ 6 Abs. 1 sentence 1 no. 2 AStG).

Who is caught? The participation threshold and the seven-year rule

Not every relocatee falls under § 6 AStG. The personal scope has been governed by § 6 Abs. 2 AStG since the 2022 reform: natural persons who, within the last twelve years before the Wegzug, were subject to unlimited German tax liability for at least seven years in total. An expat who lived in Germany for three years and built up a participation during that time does not trigger the Wegzugsbesteuerung on departure. The 1 % threshold comes from § 17 EStG and is met as soon as it was reached at any point in the five years before the Wegzug - a shareholder who held 1.5 % in a family GmbH and reduced the stake to 0.8 % two years ago still falls within the scope.

Why the 2022 reform changed everything

The ATAD-Umsetzungsgesetz (ATAD Implementation Act) of 25 June 2021 fundamentally restructured the Wegzugsbesteuerung with effect from 1 January 2022. The old special treatment - indefinite interest-free Stundung for EU/EEA departures - has been removed without replacement. Under the current law (as of 2026), a uniform rule applies: the tax is assessed immediately, payable on application in seven equal annual instalments (§ 6 Abs. 4 AStG) against Sicherheitsleistung (collateral), such as a bank guarantee or a pledge over the shares. The reason lies in the EU ATAD Directive (Directive 2016/1164/EU), which Germany transposed late and used as an opportunity to remove the historically grown EU/EEA privileges.

In my practice I regularly see clients who plan their Wegzug with the old law in mind - and only learn in the advisory meeting that their Swiss Stundung in 2026 looks different from that of their business partner in 2019.

How high is the tax in practice?

The Wegzugsbesteuerung draws on § 17 EStG: the disposal gain is the difference between fair market value at the time of Wegzug and the original acquisition costs. 60 % of that gain is subject to individual income tax under the Teileinkunftsbesteuerung (partial income method, § 3 no. 40 EStG). At a top marginal rate of 45 % plus the Solidaritaetszuschlag (solidarity surcharge), this produces an effective burden of around 28.5 % on the gross gain.

Worked example: A managing director holds 100 % of a GmbH with a fair market value of EUR 5 million (acquisition cost EUR 25,000). On relocating to Zurich, a deemed disposal gain of EUR 4.975 million arises; 60 % (EUR 2.985 million) is taxed at 45 % plus Soli, giving a Wegzug tax of roughly EUR 1.42 million - assessed immediately, without a single share having been sold. Valuation follows the vereinfachtes Ertragswertverfahren (simplified income value method, §§ 199 ff. BewG) or an industry-standard approach. The dispute over the right valuation basis is the central lever - a professional valuation can reduce the deemed gain and thus the tax significantly.

Stundung under the new law: seven-year instalment plan

Under § 6 Abs. 4 AStG, the assessed tax is, on application, paid in seven equal annual instalments. The first falls due on assessment, the remaining six one year apart, in principle interest-free as long as the taxpayer complies with cooperation duties. The Stundung is tied to conditions: Sicherheitsleistung (typically a bank guarantee, a pledge over the shares, or a mortgage on domestic real estate - for large participations this can mean liquidity needs in the seven-figure range); annual reporting duties (notification of address and confirmation that the shares are still held, § 6 Abs. 5 AStG); and revocation on breach (a sale, insolvency proceedings, larger profit distributions, or a gratuitous transfer - the remaining amount then falls due in one lump sum). The Sicherheitsleistung is often the largest operational hurdle; banks rarely issue guarantees for six-figure amounts without valuable collateral.

Legacy cases: those who relocated before 2022

For departures before 1 January 2022, Bestandsschutz (grandfathering) applies: an indefinite interest-free Stundung granted under the old law generally remains in force, provided the conditions and annual reporting duties are met. These legacy cases are treated separately from new cases - a point regularly overlooked, because many clients no longer actively monitor their Stundung. A missed notification can jeopardise the claim.

Return rule: when the Wegzug is not final

The Rueckkehrerregelung (return rule) in § 6 Abs. 3 AStG is one of the most practically important provisions of German international tax law. If the taxpayer again becomes subject to unlimited German tax liability within seven years and has not disposed of the shares in the meantime, the Wegzugsbesteuerung is cancelled retrospectively; instalments already paid are refunded. The deadline can be extended on application by up to five years if the Wegzug was always intended as temporary (§ 6 Abs. 3 sentence 3 AStG) - up to twelve years abroad in total. The precondition is a credible demonstration of the return intention; the tax office looks at this critically. A managing director sent to Switzerland for three to five years with a concrete intention to return can, for example, neutralise the tax in practice - provided the conditions are documented cleanly.

The FG Berlin-Brandenburg (Fiscal Court of Berlin-Brandenburg) clarified in its ruling of 27 April 2022 (ref. 3 K 3072/20): for the trigger in § 6 Abs. 1 sentence 1 AStG, the sole relevant point is the end of unlimited tax liability, not the motivation for the Wegzug. The rule was held constitutional; an appeal to the BFH (Bundesfinanzhof, the Federal Fiscal Court) was admitted.

Target countries in comparison

The Wegzugsbesteuerung is a German concept; what happens in the target country forms a second layer. Four destinations dominate our Frankfurt practice: Switzerland, Spain, Portugal and the USA.

Overview

Switzerland

The Germany-Switzerland DBA (Doppelbesteuerungsabkommen, double tax treaty) contains in Art. 4 Abs. 4 the "ueberdachende Besteuerung" (overlapping taxation): Germany retains the right to tax certain income for five years after the Wegzug if the relocating person was a German national. The DBA has no effect on the trigger of § 6 AStG. EU law is decisive: the ECJ (European Court of Justice) held in Waechtler (C-581/17, 26 February 2019) that immediate Wegzugsbesteuerung on relocation to Switzerland infringes the EU-Switzerland Free Movement Agreement; a Stundung is owed until the actual disposal. The BFH implemented this for legacy cases (judgment of 6 September 2023, I R 35/20); the BMF letter (Bundesfinanzministerium-Schreiben, Federal Ministry of Finance letter) of 2 June 2025 regulates legacy cases predating 1 January 2022.

Switzerland has no Wegzugsbesteuerung of its own. The tie-breaker under Art. 4 Abs. 2 is tricky: keeping an apartment in Germany risks being treated as still resident there, and the Wegzug trigger may not be met - which can lead to dual unlimited tax liability. The Pauschalbesteuerung (lump-sum taxation) for wealthy newcomers without Swiss gainful activity is handled at cantonal level (Zurich abolished it in 2010, Valais and Geneva still apply it); it is not available to managing directors with continuing activity in Germany.

Spain

Spain was traditionally the retirement destination for German entrepreneurs, also because of the Beckham rule for incoming managers. § 6 AStG applies unchanged; Spain itself has an exit tax (Impuesto de Salida) for participations of EUR 4 million or from 25 %. The Sicherheitsleistung can be provided over Spanish assets, and EU membership eases administrative cooperation. Anyone Spanish tax resident (more than 183 days a year) is subject to the Spanish wealth tax (Impuesto sobre el Patrimonio) on worldwide assets - effectively zero in Madrid, up to 3.5 % in Catalonia.

Portugal

Until recently, Portugal was the European tax haven: the Non-Habitual-Resident status (NHR) brought ten years of tax exemption on many foreign-source income. With effect from 1 January 2024, NHR was abolished for newcomers and replaced by the IFICI programme (RNH 2.0) - much narrower, limited to research and innovation professions. Managing directors in the classic sense no longer benefit. Legacy cases who applied before 2024 (or by 31 March 2024) keep NHR for the full ten-year period. § 6 AStG remains unaffected. The advantage of Portugal today lies almost solely in lifestyle and the low inheritance tax.

USA

The USA is the most complicated Wegzug destination. Three layers interact: § 6 AStG in Germany (triggered as always), US Exit Tax (IRC § 877A) for US persons giving up their status, and Estate Tax and Gift Tax under the Germany-USA treaty (non-citizens face an allowance of only USD 60,000 on US-situs assets; Estate Tax up to 40 %). FATCA (Foreign Account Tax Compliance Act) additionally makes it harder for US persons to open German bank accounts - many banks avoid the risk and close accounts.

Case study: family GmbH Wegzug to Zurich

A 52-year-old managing director of a mid-sized family GmbH (fair market value EUR 12 million, acquisition cost EUR 50,000) planned his Wegzug to Zurich in 2024. His first advisor calculated the Wegzug tax at around EUR 3.4 million. In a second opinion we identified three levers: a professional valuation under IDW S 1, reducing fair market value to EUR 8.5 million; a Schenkung (lifetime gift) of 30 % of the shares to the daughter remaining in Frankfurt, using the Freibetrag (annual tax-free allowance, § 16 ErbStG) and the Verschonungsabschlag (relief deduction for operating assets under § 13a ErbStG); and contributing the remaining shares into a Holding before the Wegzug. The final Wegzugsbesteuerung was reduced to around EUR 1.2 million - serviceable in seven instalments of EUR 170,000 from Swiss salary and dividends, without selling substance. The preparation window was 22 months.

The amount of the Wegzugsbesteuerung is negotiable - but only as long as planning starts before the moving van is at the door.

Tax entanglement with Holdings

The Wegzugsbesteuerung hits direct GmbH shares as well as participations in Holding companies. If the Holding holds German business assets or German subsidiaries, an additional Entstrickung (deemed dis-entangling) trigger can arise on Wegzug - the fictional disclosure of silent reserves when Germany loses its taxing right over an asset. As we show in the article on Holding structures and their tax advantages, the Holding is one of the strongest structuring tools - on Wegzug it becomes a potential tax trap if no action is taken in time. Partnership-style Holdings (e.g. GmbH & Co. KG) are particularly tricky: the Wegzugsbesteuerung can collide with Entstrickung of Sonderbetriebsvermögen (special operating assets). Real estate held as Sonderbetriebsvermögen II is forcibly dis-entangled on Wegzug.

Atypical silent participations (atypisch stille Beteiligungen) in German partnerships are also subject to Entstrickung taxation on Wegzug. International trust or foundation structures must additionally observe the Zurechnungsbesteuerung (attribution taxation) for foreign family foundations (§ 15 AStG): income of a foundation in a low-tax country is attributed to the founder subject to unlimited German tax liability. US trusts are particularly dangerous: from a German perspective they are often fiscally transparent, from a US perspective a separate entity - an asymmetry that regularly leads to unexpected double taxation.

Six practical tips for structuring before the Wegzug

Clean planning can significantly mitigate, though not avoid, the Wegzugsbesteuerung. Six levers:

1. Have the valuation reviewed early. A professional business valuation under IDW S 1 or the vereinfachtes Ertragswertverfahren (§§ 199 ff. BewG) can reduce the deemed gain by 20 to 40 %.

2. Set up the Holding in good time. Contributing the operating GmbH into a Holding creates flexibility. The seven-year lock-up period must be observed, but with timely planning shares can later be sold in stages.

3. Consider a Schenkung to children before the Wegzug. A Schenkung (lifetime gift, taxed under Erbschaftsteuer / German inheritance tax, governed by ErbStG) of GmbH shares to children remaining in Germany can sidestep the Wegzugsbesteuerung. Under § 16 Abs. 1 no. 2 ErbStG, the Freibetrag for children is EUR 400,000 per parent every ten years; the Schenkungsteuer (German gift tax, governed by ErbStG) is usually considerably cheaper.

4. Family foundation as an alternative. A German Familienstiftung (family foundation under German private law) holding the GmbH shares keeps assets in the family long-term while remaining internationally flexible.

5. Clarify Sicherheitsleistung early. Bank negotiations on collateral should begin at least six months before the Wegzug.

6. Document the return option. Fixed-term contracts abroad, continuing managing director function in Germany, family members in Germany - this strengthens the application to extend the return deadline under § 6 Abs. 3 sentence 3 AStG.

What does not work: three common misconceptions

Three ideas regularly fail. "I will keep an apartment in Germany, then there is no Wegzug" - the tie-breaker principle under the DBA applies, and the apartment alone becomes a risk factor. "I will transfer the shares to a Swiss Holding" - the transfer to a foreign company is itself a Wegzug trigger (§ 6 Abs. 1 sentence 1 no. 2 AStG). "I will sell to my brother at fair market value before the Wegzug" - that directly triggers § 17 EStG, with no Stundung option.

What to do now

Plan three to five years ahead. The first step is an analysis of the Wegzugsbesteuerung - it shows what you would pay on the day you leave the country, often the first reality check. The second is structuring (valuation, Holding, Schenkung, foundation); an independent second opinion from a tax advisor is worthwhile before any major decision. The third is operational implementation: valuation report, changes to the partnership agreement, bank negotiations on the Sicherheitsleistung, application for Stundung - typically three to six months, completed well before the planned Wegzug date.

Frequently asked questions on Wegzugsbesteuerung

When does the Wegzugsbesteuerung apply and how does Stundung work? It is triggered as soon as a person with at least 1 % in a corporation relocates their domicile abroad; § 6 AStG deems a sale at fair market value, taxed under § 17 EStG. The tax is assessed immediately, but can be paid in seven equal annual instalments (§ 6 Abs. 4 AStG), in principle interest-free against Sicherheitsleistung. On return within seven years, without disposal of the shares, the tax is cancelled retrospectively (§ 6 Abs. 3 AStG); the deadline is extendable to up to twelve years.

What problem does it solve? It prevents a taxpayer from shifting silent reserves built up in Germany abroad tax-free and selling the shares in a low-tax country.

When exactly is it triggered? By the end of unlimited tax liability in Germany (§ 1 Abs. 1 EStG) - the giving up of Wohnsitz (§ 8 AO) and gewoehnlicher Aufenthalt (§ 9 AO). Only those subject to unlimited tax liability for at least seven of the last twelve years are caught (§ 6 Abs. 2 AStG).

Does it also apply on a Wegzug within the EU? Yes. Since the ATAD Implementation Act 2022 there is no longer any special status for EU/EEA departures; the tax falls due immediately, payable in seven annual instalments on application.

What applies to legacy cases before 2022? Bestandsschutz applies: an old-law Stundung generally remains in force. For Swiss legacy cases, the ECJ ruling Waechtler (C-581/17) requires a Stundung until actual disposal.

What happens on return to Germany? The Wegzugsbesteuerung is cancelled retrospectively, provided the shares have not been disposed of in the meantime. Tax instalments already paid are refunded. The deadline can be extended by up to five years if the Wegzug was only temporary.

Does a Holding structure help? A Holding creates flexibility around the Wegzugsbesteuerung: disposal gains on shareholdings are 95 % tax-free at Holding level; 5 % is treated as non-deductible business expenditure.

What does the Wegzugsbesteuerung typically cost for a family GmbH? For a 100 % participation with fair market value EUR 3 million and acquisition cost EUR 25,000, a deemed gain of EUR 2.975 million arises; 60 % of that (EUR 1.785 million) is taxed under the Teileinkunftsbesteuerung at up to 45 %. The burden comes to around EUR 850,000 - due on the day of Wegzug.

Personal consultation?

The Wegzugsbesteuerung is one of the most complex topics in international tax law. Standard solutions rarely work - every Wegzug has its own constellation of participation structure, family situation, target country and timeline.

Book a free initial consultation on Wegzugsbesteuerung or use our contact form. We reply within 48 hours.

Related topics

• International inheritance law 2026: EU Succession Regulation in practice - Relocatees often inherit under two legal systems.
• Unternehmensnachfolge: tax planning in 5 steps - The Schenkung before the Wegzug is part of larger succession planning.
• Holding structure: tax advantages, liability protection and strategic flexibility - The most important structuring tool before the Wegzug.
• Professional athletes - 7 wealth traps - Many mechanisms apply 1:1 to managing directors.
• Starting Nachfolgeplanung early - Five to ten years of lead time gives all the levers.
• Establishing a Familienstiftung: EUR 3m threshold, Erbersatzsteuer - The foundation as an alternative to direct holding of the shares.
• Topic hub Wegzugsteuer - Overall view of the cluster with pillar and all spokes.
• Wegzugsteuer 2026: main guide - Basics, worked examples, country comparison.
• Avoiding Wegzugsteuer - 7 strategies from practice - Avoidance strategies with worked examples.
• Wegzugsteuer for individuals: when it really applies - Differentiation for investors without 1 % participation.
• Wegzugsteuer sole proprietorships and Entstrickung - Entstrickung taxation for freelancers and sole proprietors.
• Wegzugsteuer for professional athletes: Monaco, Switzerland, image GmbH - Image rights structuring for top athletes.

External sources and legal texts

• § 6 AStG at gesetze-im-internet.de - Full legal text of the Wegzugsbesteuerung
• § 17 EStG at gesetze-im-internet.de - Disposal of shares in corporations
• ATAD Directive 2016/1164/EU - EU legal basis of the 2022 reform
• FG Berlin-Brandenburg, ruling of 27 April 2022 - 3 K 3072/20 - Constitutionality under the new law

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This article is for general information and does not replace individual tax advice. The tax effects depend on the concrete participation structure, the target country and the individual family situation. For Wegzugsbesteuerung there is no standard solution. Legal status: May 2026.