Re:Exit Tax: Leave Germany before your business gets big
by seabass-labrax on Friday August 08, 2025 @09:04AM
(#44836514)
OK, 9x the value of your property as liquid wealth is nice, but you'll still need to pay it back eventually, won't you?
Re:Exit Tax: Leave Germany before your business gets big
by carlosjobim on Friday August 08, 2025 @12:50PM
(#44839156)
After you've paid it back, you still own the property which is 9x the value, or maybe more. So you can cash out instantly, without having to move out. And you get to pay it back in 30 or 50 years time. By that time, the money is worth half or less than half than what it is today. And your interest is much less than inflation. And you can deduct the interest from your taxes.
Mistake in logic. The money you received as a loan doesn't depreciate in value if the underlying asset depreciates in value. And vice versa.
As for interest, if your real estate has appreciated by a factor of 9 as in the example we're discussing, then interest rates are of minor concern to get the jackpot payout. As you certainly know, you wouldn't have to take out a loan corresponding to the entire value of your asset, and neither would most banks give it.