Exit Tax: Leave Germany before your business gets big

Re:Exit Tax: Leave Germany before your business gets big by laurencerowe on Friday August 08, 2025 @03:36AM (#44834527)

Double taxation treaties negate this somewhat, but there are a bunch of edge cases.

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Re:Exit Tax: Leave Germany before your business gets big by notTooFarGone on Friday August 08, 2025 @03:42AM (#44834560)

You have to file your taxes every year in the US either way. You can't even renounce your citizenship without paying a lump sum.

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Re:Exit Tax: Leave Germany before your business gets big by laurencerowe on Friday August 08, 2025 @03:59AM (#44834640)

It would be a bureaucratic pain but if I were to move back to Europe (having become a US citizen) I don’t expect I would end up paying any tax to the US after applying the foreign tax credit.

But there could be a whole lot of complexity around stuff like ETFs and mutual funds and whether they were recognized by both countries.

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Re:Exit Tax: Leave Germany before your business gets big by philjohn on Friday August 08, 2025 @10:04AM (#44837109)

And because the tax years don't line up, it's more costly than filing just in the US, or just in the EU, plus if you moved with a company and were granted RSU's in the US, or keep property or assets in the US ... it's just a pain to calculate properly.

Have friends who regularly spend 10x more than I do my accountant for my tax return because of this.

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