Are you planning your move from Germany as an entrepreneur? Such a step involves not only personal changes but also significant tax and legal consequences. Careful planning is important to avoid financial disadvantages. In this article, you will learn what you, as an entrepreneur, need to consider when deregistering from Germany. We have listed important points below:

1. Formal Deregistration with the Registration Authority

After the end of unlimited tax liability, deregistration must take place with the responsible registration authority. This is required by law when you move abroad permanently and no longer have a residence in Germany.

Important Notes

- The deregistration must occur within two weeks after moving out.

- You can deregister in person or in writing.

- After deregistration, you will receive a confirmation of registration that you can present abroad.

Keep the registration confirmation safe, as you will need it for tax matters in your new country of residence.

2. Exit Taxation

If you hold at least 1% of a corporation (e.g., GmbH), the exit taxation comes into play. The tax authorities treat your move as a fictitious disposal of your shares, which leads to taxation of hidden reserves.

What does this mean for you?

You must pay tax on the capital gain of your shares, even though no actual sale has taken place.

There are ways to avoid or defer exit taxation.

3. Is your business location still active in Germany?

If you continue to operate in Germany or earn income after your move, your business may be considered a permanent establishment. The income from this permanent establishment is taxable in Germany.

Questions for Clarification

- Do you still have an office or a branch in Germany?

- Are you still a managing director of a German corporation?

- Are you still engaging in business activities in Germany?

- How can you structure these activities for optimal tax efficiency?

Review your corporate structure and make adjustments if necessary.

4. Income from Germany after the Move

Even after your move, you can still receive income from Germany, which remains taxable in Germany.

Typical Types of Income

- Income from a commercial operation with a permanent establishment in the country.

- Income from rental and leasing.

- Capital gains from real estate or shares in companies.

This income must be taxed in Germany and reported in your tax return.

5. Optimize Corporate Structure and Plan Succession

Adjusting your corporate structure can be beneficial to take advantage of tax benefits and strengthen your international orientation.

Considerations

- Is a holding structure advantageous for your company?

- How do you plan the succession in the company?

- What tax implications does a change of location have?

Conclusion

Moving from Germany as an entrepreneur is a complex process that requires thorough planning. Tax and legal consequences should not be underestimated.

Do you want to manage your move professionally and in a tax-efficient manner? We support you in considering all legal and tax aspects and positioning your company successfully internationally.

Request a non-binding consultation now!

Use our expertise in international tax law and start your new chapter of life relaxed. Schedule an appointment now for a non-binding initial consultation!