Is the exit tax applicable to individuals?

Exit tax might be relevant not only for transferring a business, but also in case an individual is changing their tax residency country.

Individual exit taxation example could be as follows: a person owns shares worth €100 000 when he changes his tax residency. He is not required to pay anything at the moment of the factual residency change, however, if the value of the shares increases, for example, after two years of being a tax resident in a new country, and he is selling these shares for €150 000, after the sale is conducted, this person will be obliged to pay taxes based on the €100 000 value in his initial tax residency country, and the taxes from €50 000 in his current tax residency country.

There are different strategies for minimizing the risks of exit tax being applied, however, they must be carefully evaluated on a case-by-case basis. Contact us and we will find the best solution tailored for your individual circumstances.