Wegzugsbesteuerung § 6 AStG 2026: Deferral and Return

What is the Wegzugsbesteuerung under § 6 AStG?

The Wegzugsbesteuerung under § 6 Aussensteuergesetz triggers a deemed sale of shares at fair market value (gemeiner Wert) for any person with unlimited German tax liability who holds at least 1 % in a domestic or foreign corporation and carries out the Wegzug. The gain calculated on this basis is taxed under § 17 EStG — even though no actual sale has occurred.

The trigger is the ending of unlimited German tax liability. In practice this happens when the taxpayer gives up both their Wohnsitz (residence under § 8 AO) and their gewoehnlicher Aufenthalt (habitual abode under § 9 AO) in Germany. A gratuitous transfer of the shares to a person resident abroad also triggers the tax (§ 6 Abs. 1 Satz 1 Nr. 2 AStG).

The 1 % shareholding threshold applies if it was met at any point within the five years preceding the Wegzug. So anyone who held 1.5 % in a family GmbH and reduced their stake to 0.8 % two years ago still falls within the rule.

Why the 2022 reform changed everything

The ATAD implementation act of 25 June 2021 reshaped the Wegzugsbesteuerung with effect from 1 January 2022. Until then, anyone moving to an EU or EEA state could obtain interest-free open-ended deferral on application, as long as they remained taxable there. That special regime has been abolished without replacement.

Today a uniform rule applies to all relocations — whether to an EU member state, to Switzerland or to the United States: the tax is assessed immediately. On application, it can be paid in seven equal annual instalments (§ 6 Abs. 4 AStG). The condition is a security, typically a bank guarantee or a pledge of the shares themselves.

The reform was driven by the EU's ATAD directive (Anti Tax Avoidance Directive, Directive 2016/1164/EU). Germany implemented it late and took the opportunity to scrap the historically grown privileges for EU/EEA relocations. The federal finance ministry argued for European-law equal treatment; the tax consequence is real and felt.

In my practice I regularly see clients who plan their Wegzug with the old legal position in mind — and only learn during the advisory meeting that their Swiss deferral in 2026 looks different from that of their business partner back in 2019.

How high is the tax in practice?

The Wegzugsbesteuerung relies on the mechanics of § 17 EStG: the capital gain is the difference between the fair market value of the shares at the time of the Wegzug and the original acquisition cost. 60 % of that gain is subject to individual income tax under the Teileinkuenfteverfahren (partial-income procedure under § 3 Nr. 40 EStG). At the top tax rate of 45 % plus solidarity surcharge the effective burden is around 28.5 % of 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 share capital). The Wegzug to Zurich produces a deemed capital gain of EUR 4.975 million. 60 % of that, EUR 2.985 million, is taxed. At the 45 % top rate plus solidarity surcharge this results in an exit tax of roughly EUR 1.42 million — assessed immediately, without a single GmbH share having been sold.

The valuation of the GmbH shares follows the simplified income-capitalisation method (§§ 199 ff. BewG) or a sector-standard method. The dispute over the right valuation approach is in practice the central lever — a professional valuation can reduce the deemed gain, and therefore the tax, substantially.

Deferral under the new law: seven years of instalments

Since 2022 deferral has been governed uniformly in § 6 Abs. 4 AStG for every relocation: on application the assessed tax is paid in seven equal annual instalments. The first instalment falls due on assessment, the other six in successive years. The instalments are interest-free as long as the leaver fulfils their cooperation duties.

The deferral is, however, tied to conditions that have to be taken seriously. The tax office typically requires a security: a bank guarantee, a pledge of the shares, or a mortgage over domestic real estate. For large shareholding values this can mean a seven-figure liquidity requirement. The leaver has to confirm annually that the shares are still held and that no distributions have been made which would count as a realisation substitute (§ 6 Abs. 4 Satz 5 AStG). Any breach causes the deferral to collapse: a sale of the shares, the opening of insolvency proceedings, larger distributions or a gratuitous transfer all cause the remaining balance to fall due in one go.

In practice the security requirement is often the biggest operational hurdle. Banks rarely issue guarantees for six-figure sums without solid collateral — leavers then have to pledge private securities portfolios or real estate. Anyone who cannot or will not do so pays the tax in a single payment.

Rueckkehrerregelung: when the Wegzug is not permanent

The Rueckkehrerregelung in § 6 Abs. 3 AStG is one of the practically most important provisions of German external tax law. If the leaver becomes subject to unlimited German tax liability again within seven years and has not sold the shares in the meantime, the Wegzugsbesteuerung is cancelled retrospectively. Instalments already paid are refunded.

The seven-year window can be extended on application by another five years if the Wegzug was always intended as temporary from the outset (§ 6 Abs. 3 Satz 3 AStG). In total this allows up to twelve years abroad with a return option. The condition is a credible demonstration of the intention to return — the tax office scrutinises this carefully.

The Rueckkehrerregelung is the strongest argument for thorough structuring of the Wegzug. A managing director seconded to Switzerland for three to five years, planning with a concrete return intention, can effectively neutralise the tax — provided the conditions are properly documented.

The Berlin-Brandenburg Tax Court ruled on 27 April 2022 (case number 3 K 3072/20): the trigger of § 6 Abs. 1 Satz 1 AStG depends solely on the ending of unlimited tax liability, not on the leaver's motivation. The provision was held to be constitutional; appeal to the Federal Fiscal Court (Bundesfinanzhof, BFH) was admitted.

Destination countries compared: Switzerland, Spain, Portugal, USA

The Wegzugsbesteuerung is a German concept — what happens in the destination country is a second layer. Four destinations dominate Frankfurt practice: Switzerland, Spain, Portugal and the USA. Each country has its own pitfalls that supplement or amplify the German tax.

Overview of the four most important destinations

Switzerland: DBA advantages, but § 6 AStG applies anyway

Switzerland is the classic destination for managing directors in the Frankfurt banking sphere. The Germany-Switzerland double taxation treaty (DBA) contains in Art. 4 para. 4 the so-called extended residence taxation: Germany retains taxing rights over certain income for five years after the Wegzug if the leaver was a German national.

The DBA itself has no effect on the Wegzugsbesteuerung — § 6 AStG applies regardless of any DBA. Switzerland does, however, recognise the German exit tax as a step-up for its own wealth taxation: the acquisition cost for Swiss wealth tax matches the fair market value used in Germany. That avoids double taxation of the hidden reserves and produces a clean cut.

In practice the tie-breaker rules under Art. 4 para. 2 of the Germany-Switzerland DBA are tricky: keeping an apartment in Germany risks being treated as still resident there — which means the Wegzug trigger is never met. At first glance this sounds attractive but it can lead to double unlimited tax liability.

Switzerland also offers the option of lump-sum taxation (Aufwandbesteuerung) for wealthy newcomers without gainful employment in Switzerland. It is administered at cantonal level — Zurich abolished it in 2010, while Valais and Geneva still embrace it. For managing directors with continuing operational activity in Germany, lump-sum taxation is not available.

Spain: classic retirement destination with reform risk

Spain has traditionally been the retirement country for German entrepreneurs, helped along by the Beckham rule for inbound managers. The Wegzugsbesteuerung applies unchanged under § 6 AStG; Spain itself has its own exit tax (Impuesto de Salida) for shareholdings from EUR 4 million or from 25 %.

For the seven-year deferral, Spain is currently uncomplicated — the security can also be provided through Spanish assets, provided cross-border enforcement is possible. EU membership eases administrative cooperation significantly.

Important: anyone classed as a Spanish tax resident (over 183 days per year) is subject to Spanish wealth tax (Impuesto sobre el Patrimonio) on worldwide assets, with the rate depending on the region. In Madrid effectively zero, in Catalonia up to 3.5 %. So the German Wegzugsbesteuerung meets a Spanish wealth tax — a combination that has to be modelled in advance.

Portugal: NHR gone, RNH new — caution with legacy cases

Portugal was the tax paradise of Europe until 2024: the Non-Habitual Resident regime (NHR) brought ten years of tax exemption on foreign-source income. With effect from 1 January 2024 the NHR status was abolished for new arrivals and replaced by the IFICI programme, or RNH 2.0 — much narrower scope: research and innovation occupations only.

Managing directors in the classical sense no longer qualify. Anyone who applied for NHR status before 2024 (or by 31 March 2024 under transitional rules) keeps it for the full ten-year period. This creates a two-tier client base: legacy cases benefit, new arrivals do not.

Even here § 6 AStG remains untouched. The Wegzugsbesteuerung is triggered in Germany regardless of what Portugal does. Portugal's advantage today lies almost only in the lifestyle and the low Erbschaftsteuer (effectively zero for direct relatives).

USA: Estate Tax Treaty and FATCA

The USA is the most complex destination. Three layers interact:

1. § 6 AStG in Germany is triggered as ever.
2. US Exit Tax (IRC § 877A) hits US persons who give up their status. For incomers this layer stays dormant initially; only those who later surrender a Green Card walk straight into the next exit tax.
3. Estate Tax and Gift Tax: the Germany-USA treaty on estate, inheritance and gift taxes provides only a USD 60,000 exemption for non-citizens with US assets. Moving to the USA and dying there can result in substantial estate tax (up to 40 %) on US-situs assets.

FATCA (Foreign Account Tax Compliance Act) additionally complicates the opening of accounts in Germany for US persons — many banks avoid the risk and close accounts. The tax mechanics are fine; the operational fallout takes first rank.

Case study: family GmbH relocation to Zurich

An anonymised case from our practice shows what good preparation can achieve. A 52-year-old managing director of a mid-sized family GmbH (fair market value EUR 12 million, acquisition cost EUR 50,000) planned in 2023 to move to Zurich. His first tax adviser calculated the exit tax at around EUR 3.4 million — due immediately or in seven instalments of EUR 485,000 each.

In our second opinion we identified three levers. First, a professional valuation report under IDW S 1 with sector-typical capitalisation rates, reducing the fair market value to EUR 8.5 million (instead of the original multiplier-based estimate of EUR 12 million). Second, a Schenkung (lifetime gift, taxed under Erbschaftsteuergesetz / ErbStG) of 30 % of the shares to the daughter remaining in Frankfurt, using the Freibetrag (personal tax-free allowance of EUR 400,000 per child per donor under § 16 ErbStG) and the Verschonungsabschlag (tax exemption of 85 or 100 percent on qualifying business assets, §§ 13a/13b ErbStG) for business assets. Third, the contribution of the remaining shares into a Holding (German tax-optimised holding company structure, typically with Schachtelprivileg under § 8b KStG) set up before the Wegzug, observing the seven-year lock-up period under § 22 UmwStG.

The result: the final Wegzugsbesteuerung at his level reduced to roughly EUR 1.2 million. In seven instalments of EUR 170,000 that is a sum manageable from Swiss salary plus dividends out of the German Holding — without selling any substance. The preparation window was 22 months. Had the advice started only three months before the Wegzug, neither the valuation, nor the Schenkung, nor the Holding contribution would have been feasible.

The decisive sentence from this engagement is: Wegzugsbesteuerung is no inevitability. It is a negotiation. But only if the negotiation begins before the removal van pulls up outside.

Tax entanglement with holdings: the invisible trap

The Wegzugsbesteuerung hits direct GmbH shares as well as participations in holding companies that in turn hold subsidiaries. If the Holding holds German subsidiaries or German business assets, § 50i EStG also comes into play: the Wegzugsbesteuerung can be mirrored at the level of the Holding if hidden reserves in the subsidiary would no longer be taxable abroad.

As we set out in the article on Holdingstruktur and its tax advantages, the Holding is one of the strongest structuring instruments — but at the time of the Wegzug it becomes a potential tax trap if no precautions are taken in time. The critical question is: does the Holding itself contain hidden reserves that would no longer be taxable after the Wegzug? If yes, an additional de-recognition event under § 4 Abs. 1 Satz 3 EStG for business assets and § 12 KStG for corporations is on the cards.

Particularly tricky are partnership holdings (for example GmbH und Co. KG): with these, the Wegzugsbesteuerung can collide with the de-recognition of special business assets — real estate sitting in the Holding as Sonderbetriebsvermoegen II is forcibly de-recognised on the Wegzug. The tax on the hidden reserves can then fall due in addition to the § 6 AStG tax.

Atypical silent participations and trust structures

Atypical silent participations in German partnerships are also subject to a de-recognition tax on the Wegzug under § 4 Abs. 1 Satz 3 EStG. Anyone planning complex international trust structures also has to factor in § 15 AStG: foundations and trusts in low-tax countries are attributed to the founder, which can neutralise the Wegzug effect — but only under very tight conditions.

US trusts are particularly dangerous: from the German perspective they are usually treated as fiscally transparent, while from the US perspective they are seen as a separate entity. This asymmetry regularly produces unexpected double taxation that is hard to avoid without structured advance clarification.

Six practitioner tips for structuring before the Wegzug

Anyone who plans cleanly may not avoid the Wegzugsbesteuerung outright; the levers below regularly defuse it considerably. Six levers that regularly make the difference in Frankfurt practice:

1. Test the valuation early. The fair market value of the shares is the central variable. A professional company valuation under IDW S 1 or the simplified income-capitalisation method (§§ 199 ff. BewG) can reduce the deemed gain by 20 to 40 % — the tax saving is often six figures.

2. Set up the Holding in good time. Contributing the operating GmbH into a Holding creates flexibility. The seven-year lock-up period under § 22 Abs. 2 UmwStG must be observed, but with timely planning, shares can later be sold step by step using the Teileinkuenfteverfahren. As we set out in the article on starting Nachfolgeplanung early, the most effective structurings begin five to ten years before the Wegzug.

3. Consider a Schenkung to children before the Wegzug. A Schenkung of GmbH shares to children remaining in Germany before the Wegzug can sidestep the Wegzugsbesteuerung — the shares are then no longer part of the leaver's estate. The Schenkungsteuer (German gift tax, governed by ErbStG, same brackets and exemptions as inheritance tax) with the EUR 400,000 Freibetrag per child every ten years (§ 16 ErbStG) is usually significantly cheaper than the exit tax. Condition: no reclaim clauses that could be classified as abusive design.

4. Familienstiftung as an alternative. Anyone wanting to keep assets in the family long term while remaining internationally flexible can set up a German Familienstiftung (family foundation under German private law, often used for asset protection over generations) and contribute the GmbH shares into it. The foundation itself stays in Germany; the beneficiaries can live abroad. More on this in the article on setting up a Familienstiftung.

5. Clarify the security early. Anyone wanting to use the seven-year instalment plan needs a bankable form of security. Negotiations with the house bank should start at least six months before the Wegzug. Forget that, and the tax falls due in one go.

6. Document the return option. If the Wegzug is not final, the intention to return should be documented from day one: fixed-term contracts abroad, a continuing managing-director function in Germany, family members staying in Germany. All of this strengthens an application to extend the return window under § 6 Abs. 3 Satz 3 AStG.

What does not work: three common misconceptions

In advisory conversations I regularly meet three ideas that simply do not work. First: "I'll just keep an apartment in Germany, then there is no Wegzug." That only works if the centre of vital interests genuinely remains in Germany — otherwise the DBA tie-breaker bites, and the tax office looks closely. An apartment alone is no protection; it becomes an additional risk factor.

Second: "I'll transfer the shares to a Swiss Holding, then I'm safe." Wrong: the transfer to a foreign entity is itself a Wegzug trigger (§ 6 Abs. 1 Satz 1 Nr. 2 AStG, gratuitous transfer) and can additionally trigger Schenkungsteuer.

Third: "I'll sell to my brother at fair market value before the Wegzug." That also does not avoid the Wegzugsbesteuerung — the sale instead triggers § 17 EStG directly, with no deferral option. The tax falls due immediately and in full.

What you should do now

If you, as a shareholder of a corporation, are toying with the idea of a Wegzug, you should plan three to five years of lead time. An analysis of the Wegzugsbesteuerung is the first step — it shows what you would owe on the day you leave the country. That figure is often the first reality check.

The second step is structuring: valuation, Holding, Schenkung, Familienstiftung. Which instruments make sense in your situation depends on the size of the shareholding, the family constellation, the destination country and the time axis. There is no universal recipe — and this is precisely why an independent second opinion is worth obtaining before any major structuring decision.

The third step is operational implementation: valuation reports, amendments to articles of association, talks with the bank on the security, the deferral application to the tax office. This phase usually takes three to six months and should be completed well before the planned date of the Wegzug.

Frequently asked questions on the Wegzugsbesteuerung

When exactly is the Wegzugsbesteuerung triggered?

It is triggered with the ending of unlimited tax liability in Germany under § 1 Abs. 1 EStG. The relevant facts are the giving up of the Wohnsitz (§ 8 AO) and the gewoehnlicher Aufenthalt (§ 9 AO). The reference date is the day on which both connecting factors fall away.

Does the Wegzugsbesteuerung also apply when moving within the EU?

Yes. Since the ATAD implementation act of 2022 there is no longer any special status for EU/EEA relocations. The Wegzugsbesteuerung is always assessed immediately, but can be paid in seven annual instalments on application (§ 6 Abs. 4 AStG). The open-ended interest-free deferral of the old law has been abolished.

What happens on return to Germany?

If the taxpayer returns within seven years, the Wegzugsbesteuerung is cancelled retrospectively, provided the shares have not been sold in the meantime (§ 6 Abs. 3 AStG). Tax instalments already paid are refunded. The window can be extended by five years on application if the Wegzug was only temporary.

Does a Holding structure help against the Wegzugsbesteuerung?

A Holding does not avoid the Wegzugsbesteuerung directly, since § 6 AStG also captures Holding shares. It does create flexibility: subsequent sales can later be taxed at an effective 1.5 % at the Holding level (§ 8b KStG). The seven-year lock-up period under § 22 UmwStG for the contribution must be observed.

What is a typical cost of the Wegzugsbesteuerung for a family GmbH?

For a 100 % stake in a GmbH with a fair market value of EUR 3 million and EUR 25,000 acquisition cost, the deemed capital gain is EUR 2.975 million. 60 % of that (EUR 1.785 million) is taxed under the Teileinkuenfteverfahren at up to 45 %. The tax burden lands at around EUR 850,000.

Personal conversation?

The Wegzugsbesteuerung is one of the most complex topics in international tax law. Standard solutions rarely fit — every Wegzug carries its own constellation of shareholding structure, family situation, destination country and timeline. If you are planning concretely, a structured first meeting pays off, where we go through your starting position and identify the critical variables.

Book a free first meeting on the Wegzugsbesteuerung or use our contact form. We respond within 48 hours.

Related topics

• International inheritance law 2026: EU-ErbVO in practice — Anyone moving away often leaves an estate that touches two legal systems. The EU succession regulation governs which law applies — decisive for leavers with German and foreign assets.
• Mandate: IT entrepreneur, relocation abroad — Anonymised case: shareholdings with EUR 4.2 m in assets, structured preparation with an adviser on the ground at the new Mallorca residence, tax-office review without objections.
• Holdingstruktur: tax benefits, liability shield and strategic flexibility — The Holding is the most important structuring instrument before the Wegzug. All details on the tax effect.
• Professional athletes — 7 wealth traps — Professional athletes are the archetypal Wegzug clientele; many of the mechanisms translate one-to-one to managing directors.
• Start Nachfolgeplanung early — Anyone who structures five to ten years before the Wegzug holds every lever. Anyone starting three months out pays in full.
• Set up a Familienstiftung: 3-million threshold, Erbersatzsteuer — The foundation as an alternative to direct ownership of shares when the family is internationally mobile.
• Topic hub Wegzugsteuer — Full cluster overview with pillar and all spokes.
• Wegzugsteuer 2026: main guide — Fundamentals, worked examples, country comparison.
• Wegzugsteuer avoidance — 7 strategies from practice — Avoidance strategies with worked examples.
• Wegzugsteuer for private individuals: when it really applies — Delimitation for pure investors without a 1 % stake.
• Wegzugsteuer sole traders and de-recognition — § 4 Abs. 1 Satz 3 EStG for the self-employed.
• Wegzugsteuer for professional athletes: Monaco, Switzerland, image GmbH — Image-rights structuring for top athletes.

External sources and statutory texts

• § 6 AStG at gesetze-im-internet.de — full statutory text of the Wegzugsbesteuerung
• § 17 EStG at gesetze-im-internet.de — sale of shares in corporations
• ATAD directive 2016/1164/EU — EU legal basis of the 2022 reform
• FG Berlin-Brandenburg, judgment of 27.04.2022 — 3 K 3072/20 — constitutionality of the Wegzugsbesteuerung under the new law

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This article serves general information purposes and does not replace individual tax advice. The tax consequences depend on the specific shareholding structure, the destination country and the individual family situation. With the Wegzugsbesteuerung there is no standard solution. Legal position: May 2026.