Key takeaways
- You stop being a German tax resident only when you no longer have a dwelling available to you in Germany and no habitual abode there (presumed after more than six months of presence); deregistering at the Bürgeramt is evidence, not the test itself.
- Leaving can trigger the German exit tax on shareholdings of 1% or more held as private assets: the unrealised gain is taxed as if you had sold, and since January 2025 similar rules also cover certain investment-fund units.
- After departure, German-source income (German rental income, German employment, German pensions) stays taxable in Germany, and German nationals moving to low-tax countries can remain subject to extended German tax liability for years.
Last reviewed: October 2026
Ending German tax residency is a matter of facts on the ground, not of paperwork. The Finanzamt looks at whether you still have a home available to you in Germany and how long you are physically there. This guide explains the tests, the exit-tax trap for founders and investors, what remains taxable after you leave, and a step-by-step checklist for location-independent professionals relocating in 2026.
Key figures for leaving Germany (2026)
| Item | Figure / rule |
|---|---|
| Residence test 1 – dwelling | Any home in Germany you use or that stays available to you (owned, rented, even a room) |
| Residence test 2 – habitual abode | Presumed after a continuous stay of more than 6 months (which may span two calendar years); short trips do not interrupt it |
| Exit tax trigger | Shareholding of at least 1% in a corporation, held as a private asset |
| Flat tax on capital income (non-exit) | 25% + 5.5% solidarity surcharge = 26.375% (+ church tax if applicable) |
| Inheritance & gift tax | 7% to 50%, with allowances from EUR 20,000 to EUR 500,000 |
| Net wealth tax | None |
| Deregistration (Abmeldung) | Within 2 weeks of moving out of your registered address |
When are you a German tax resident?
Germany taxes individuals on their worldwide income if they have either:
- A dwelling (Wohnsitz) in Germany that they use or that is at least available to them. It does not matter whether you own or rent it, or whether it is a full flat or a room at a relative's home: if it remains accessible to you, it can keep you resident.
- A habitual abode (gewöhnlicher Aufenthalt) in Germany, presumed when you stay in Germany for a continuous period of more than six months, even if it spans two calendar years; short interruptions do not break it.
Nationality is not a criterion and registration with the authorities is only an indicator. What counts are the objective circumstances. In practice, this is where most "I moved but I'm still taxed in Germany" cases come from: the flat in Berlin was kept "just in case", sublet to a friend with the owner still holding a key, or the family stayed behind.
What if you are resident in two countries?
If you are also resident in your new country under its domestic law, the tie-breaker rules of the double tax treaty decide which country may tax you as resident. They look, in order, at your permanent home, your centre of vital interests (personal and economic ties), your habitual abode and finally your nationality. Treaty residence elsewhere can protect you from German worldwide taxation even if you keep a German dwelling, but you must be able to document it (residence certificate, lease, local tax filings).
How to stop being a German tax resident: step-by-step
- Give up your German dwelling, or make it truly unavailable. End the lease, sell, or rent it out long-term to a third party under a lease that excludes your own use. Keeping a furnished flat "available" is the most common reason residence continues.
- Deregister (Abmeldung) at your local Bürgeramt/Einwohnermeldeamt when you move out. Keep the confirmation (Abmeldebestätigung): banks, insurers and your new country will ask for it.
- Limit your physical presence. Stay well below six months per calendar year in Germany and keep a travel log (flight tickets, boarding passes, accommodation invoices).
- Establish residence in your new country: registration, lease, local tax ID, local bank account, health insurance. Ask for a tax residence certificate once available.
- Notify your Finanzamt of your new foreign address and keep your German tax ID (Steuer-ID) – it stays with you for life.
- File the return for the year of departure. Income earned while resident is taxed in Germany; foreign income earned after departure is generally exempt but can be taken into account to set the tax rate (progression clause).
- Review payroll, pensions and social security. A German employer may need to stop or adjust wage-tax withholding; for EU/EEA moves, check A1 certificates and which country's social security applies.
- Check the exit tax before you move (next section) – it must be planned, not discovered afterwards.
The German exit tax: who is affected?
Germany's Foreign Tax Act (Außensteuergesetz, section 6 AStG) contains an exit tax for individuals. It applies if you:
- have been subject to unlimited German tax liability for a minimum period – under the rules in force since 2022, at least 7 of the last 12 years, and
- hold at least 1% of a corporation (GmbH, UG, AG or a foreign company) as a private asset.
When you move your residence or centre of life abroad, Germany treats the shares as sold at market value and taxes the unrealised gain under the partial-income method (60% of the gain is taxable at your personal rate). Gifting shares to someone who is not a German taxpayer can also trigger it.
Since 2022 the tax is generally payable in instalments over seven years on application, often against security, rather than being deferred indefinitely for moves within the EU. If you return to Germany within the statutory window, the tax can be reversed.
Since 1 January 2025, the Investment Tax Act applies similar exit rules to investment-fund units where you hold at least 1% of the fund or units acquired for at least EUR 500,000.
Example: A founder who has lived in Germany for ten years and owns 100% of a software GmbH valued at EUR 2 million (acquisition cost EUR 25,000) moves to Portugal. Germany taxes a deemed gain of about EUR 1.975 million, 60% of which (about EUR 1.185 million) is added to her taxable income for the year of departure – a six-figure tax bill without any sale. Valuation, timing and structuring before departure matter.
What stays taxable in Germany after you leave?
As a non-resident, you are subject to limited tax liability on German-source income, including:
- rental income and gains from German real estate;
- salary for work physically performed in Germany;
- German pensions (depending on the treaty);
- income from a German permanent establishment of your business;
- dividends from German companies (withholding tax, reduced under treaties).
Extended limited tax liability (section 2 AStG): German nationals who were resident for at least five of the last ten years and move to a low-tax country while keeping substantial economic interests in Germany can be taxed on a wider range of German income for up to ten years after leaving.
Inheritance and gift tax: German nationals remain subject to unlimited inheritance and gift tax for five years after leaving, and any gift involving a German-resident donor or heir stays taxable. Rates range from 7% to 50%.
Leaving Germany as a location-independent professional
- Freelancers and founders: if you keep German clients, avoid creating a German permanent establishment (a fixed place of business or a dependent agent in Germany). Your consulting income should be taxable where you actually work and reside.
- Remote employees of a German employer: after departure, salary for workdays outside Germany is generally not taxable in Germany, but the employer's payroll and social-security set-up must be changed – and working from a new country can create a permanent-establishment risk for the employer.
- Digital nomads with no new residence: leaving Germany without becoming resident anywhere else makes it harder to prove that your centre of life has moved and can expose you to the extended liability rules. A clear new tax home is the safest position.
Frequently asked questions
How do I end my tax residency in Germany?
Give up any dwelling available to you in Germany, stay less than six months per calendar year, deregister at the Bürgeramt and establish residence in another country. Germany looks at objective facts, so keep evidence: lease termination, new lease abroad, travel log and a foreign tax residence certificate.
Is deregistering (Abmeldung) enough to stop paying tax in Germany?
No. Deregistration is only an indicator. If you keep a home that remains available to you or spend more than six months a year in Germany, you can remain fully taxable on your worldwide income despite having deregistered.
Does Germany have an exit tax?
Yes. Individuals who have been German taxpayers for a minimum period and hold at least 1% of a company as a private asset are taxed on the unrealised gain when they move abroad. Since 2025, similar rules apply to certain investment-fund units. Payment can be spread over several years on application.
Do I still pay tax in Germany after moving abroad?
Only on German-source income such as German rental income, work performed in Germany or a German business establishment. German nationals moving to low-tax countries may face extended liability, and inheritance and gift tax can still apply for several years.
Can I keep my German bank account and health insurance?
Yes, a bank account does not make you resident. Some German banks restrict accounts for non-residents, and statutory health insurance usually ends when you leave, so arrange cover in your new country first.
Related guides
- How to obtain tax residency in Portugal
- Leaving Austria: ending your tax residency
- Leaving France: ending your tax residency
- Cyprus tax residency certificate explained
Sources
- PwC Worldwide Tax Summaries – Germany: Residence
- PwC Worldwide Tax Summaries – Germany: Income determination
- PwC Worldwide Tax Summaries – Germany: Other taxes
- Außensteuergesetz (AStG), sections 2 and 6 – gesetze-im-internet.de
This guide is general information, not personalised tax advice. Exit-tax and residence questions depend on your exact facts.
Planning a move out of Germany? Get a personalised exit plan – residence, exit tax and new structure – with Heavnn → heavnn.io
