Exit Taxation Around the World: The 16 Countries That Tax You for Leaving

A Nestfainder relocation guide for internationally mobile investors, founders and families

Important — please read first. Nestfainder is a relocation and expat-guidance service, not a tax advisor, law firm, or financial advisor. Nothing in this article is tax, legal, or financial advice, and it must not be relied upon as such. Exit-tax rules are complex, differ by personal situation, and change frequently — several of the regimes below were amended in 2024, 2025, or 2026. Rates are approximate and, in progressive systems, depend on income, region, holding type, and individual circumstances; double-taxation agreements (DTAs) can change the outcome entirely. Before you take any action — or make any move — consult a qualified tax lawyer or tax advisor in both your departure and destination countries.

What is an exit tax, and why should you care?

When you give up tax residency in a country, many governments treat the moment of departure as if you had sold your assets — a "deemed" or "fictional" disposal — and tax the unrealised gains that built up while you lived there. You may never have sold a single share, but the tax office wants its share of the paper profit before you slip beyond its reach. This is the essence of an exit tax (in German, Wegzugsbesteuerung).

For anyone planning an international move — a founder relocating a holding company, an executive taking a role abroad, a family optimising their tax residency — an unexpected exit-tax bill can be one of the costliest surprises of the whole process. The details matter enormously: which assets are caught, how high the effective rate is, whether you have to pay immediately or can defer, and what thresholds and exemptions might spare you altogether.

Below we walk through 16 countries that operate some form of exit taxation, grouped by how heavy the burden tends to be. And for once, Germany is not the front-runner.

Very high burden

1. Australia

When you cease Australian tax residency, Australia deems you to have disposed — at market value — of your CGT assets that are not "taxable Australian property" (TAP). That sweeps in shares, company interests, managed funds, cryptocurrency and most other capital investments. Australian real property is TAP and stays within Australia's taxing rights, so it is not deemed sold on departure.

Gains are taxed at your personal income tax rate — up to roughly 47% for 2025–26 (the 45% top marginal rate plus the 2% Medicare Levy). The 50% CGT discount for assets held over 12 months can apply, though for former residents it is apportioned to the period of Australian residency. Importantly, you can elect to disregard the deemed gain: the affected assets are then treated as taxable Australian property and remain in the Australian net until you actually sell them (or become resident again).

Sources: Australian Taxation Office — How changing residency affects CGT; ATO — Tax rates for residents.

2. Canada

On emigration, Canada applies a deemed disposition (section 128.1) across an unusually broad range of worldwide assets — shares, funds, holdings, art, jewellery and collectibles among them. Excluded are Canadian real property, certain pension and registered plans (RRSP, RRIF, TFSA, pensions, annuities), and property held by short-term residents (resident for 60 months or less in the prior 10 years).

Canada taxes only the built-in gain, not the whole asset value. The capital-gains inclusion rate for individuals remains 50% — worth stating clearly, because a proposed increase to 66.67% was first deferred and then formally cancelled on 21 March 2025. With the 50% inclusion, the effective top rate typically lands around 24–27%, depending on province. Payment can be deferred interest-free until actual disposition (elect via Form T1244); security is required above a federal-tax threshold.

Sources: Canada Revenue Agency — Dispositions of property (leaving Canada); Prime Minister of Canada — Cancellation of the proposed capital gains increase (21 Mar 2025).

3. South Africa

On ceasing South African tax residency, section 9H deems a disposal at market value of most worldwide assets. Excluded are South African immovable property, certain retirement-fund interests, and many personal-use assets (and cash).

For individuals, a maximum of 40% of the capital gain is included in taxable income. Against the 45% top income-tax rate, that produces a maximum effective CGT of about 18% — a broad base, but a materially lower effective rate than Australia or Canada.

Sources: Wylie & Co — The section 9H exit tax; PKF — Ceasing South African tax residency.

4. Norway

Norway's exit tax targets financial assets in particular: shares, company holdings, partnership interests, investment-fund units, share-savings and investment accounts (ASK), and certain financial instruments. It does not reach real property, cash or ordinary personal assets, and only gains accrued during Norwegian residency are captured.

The effective rate on share gains for 2025/2026 is about 37.84% (the gain is grossed up by a 1.72 factor and taxed at the 22% base rate). Since the tightening from March 2024, the tax is no longer necessarily due immediately on departure — you can pay now, pay in instalments, or defer, but it must generally be settled within 12 years (unless you return to Norway first). A NOK 3,000,000 basic threshold applies.

Sources: Norwegian Tax Administration (Skatteetaten) — Exit tax; BDO — Norway budget 2025 exit-tax amendments.

High burden

5. Denmark

Denmark taxes worldwide shares and similar securities on departure once the portfolio's total market value reaches just DKK 100,000. The rule generally requires you to have been liable to Danish tax on share gains for at least seven of the last ten years. Cryptocurrency can also be treated as sold at market value on departure.

Share gains are taxed progressively at roughly 27% and 42% (the 2026 bracket break sits around DKK 79,400 for a single person). Deferral until actual disposal is available for shares, though the deferral account is partly drawn down when you receive dividends or make certain distributions.

Sources: Danish Tax Agency (Skattestyrelsen) — Tax on shares if you leave Denmark; Skattestyrelsen — Crypto if you move to or from Denmark.

6. Austria

Austria captures essentially the whole of your taxable capital portfolio — widely-held shares, substantial participations, funds, bonds and, as a rule, cryptocurrency — whenever Austria loses its taxing right. The standard rate is mostly 27.5%, with 25% applying to certain investments (e.g. bank-deposit interest).

A key clarification on deferral: for private capital assets, moving to an EU/EEA state allows the tax to be assessed but not levied (the open-ended Nichtfestsetzung mechanism) until actual disposal — with no fixed time limit. The seven-year instalment model (Ratenzahlung) that Austria introduced applies to business assets, not private portfolios — a distinction worth getting right. In asset reach, Austria is stricter than Germany.

Sources: PwC — Austria: income determination; Austrian Ministry of Finance (BMF) — Capital gains taxation.

7. Germany

Germany's classic exit tax (§6 AStG) applies to shares in corporations where at least 1% was held at any point in the last five years, and where the taxpayer was subject to unlimited tax liability for at least seven of the last twelve years. Since 1 January 2025 it also reaches certain investment-fund units — in particular a fund holding of at least 1% or acquisition costs of at least EUR 500,000 per fund.

For corporate shares, the effective burden is typically around 28.5% (excluding church tax), because the partial-income method (Teileinkünfteverfahren) makes 60% of the gain taxable. For funds it depends on fund type and partial exemption. Payment is generally available in seven annual instalments, usually against security. Note that the EU/EEA-specific indefinite deferral was abolished after 31 December 2021.

Sources: Grant Thornton — Exit Tax topic hub; Noerr — Exit tax on investment-fund units from 1 January 2025.

8. Poland

For individuals, Poland's exit tax mainly targets assets where Poland loses its taxing right on a change of residence — principally business and financial holdings. The general application threshold is PLN 4 million of market value. The standard rate is 19%, dropping to 3% in special cases where no tax value can be established. Instalment payment over up to five years is possible under conditions.

One to watch: the compatibility of immediate exit taxation of individuals with EU law is currently before the Court of Justice of the EU (Case C-430/25, referred in 2025 and still pending as of mid-2026).

Sources: KPMG — Poland exit tax referred to the CJEU (C-430/25); EY Poland — Exit tax: moving out of Poland.

9. United States

The US does not impose an ordinary exit tax for a mere change of residence. It applies only when you renounce US citizenship or end a long-term green card, and then only for "covered expatriates" — those who exceed the net-worth or tax-liability thresholds, or who cannot certify five years of tax compliance. The covered-expatriate tests are a net worth of at least USD 2,000,000, average annual net income tax above USD 206,000 (2025, indexed), or failure to certify compliance on Form 8854.

The mechanism is a mark-to-market deemed sale of worldwide assets, but with an annually indexed exclusion on the deemed net gain — USD 890,000 for 2025. Capital gains are typically taxed up to 20%, potentially plus the 3.8% Net Investment Income Tax; special regimes apply to pensions, trusts and deferred compensation. Ordinary visa holders face no such exit tax.

Source: IRS — Expatriation Tax.

Medium burden

10. Netherlands

On emigration, the Netherlands assumes a deemed disposal of a substantial interest (aanmerkelijk belang) — a holding of 5% or more — and issues a "protective assessment" (conserverende aanslag) in Box 2. Dutch pension, annuity and certain owner-occupied-home products can also fall under a protective assessment. The Box 2 rate for 2026 is progressive: roughly 24.5% on the first bracket (about €68,843) and 31% above it.

The substantial-interest tax is generally assessed and then deferred; it becomes payable on a later sale, on distributions, or on abusive acts. For emigrations after 15 September 2015, the substantial-interest claim is no longer cancelled after 10 years — note, though, that the 10-year expiry still applies to the pension/annuity and owner-occupied-home protective assessments.

Sources: Belastingdienst — Protective assessment on emigration; PwC — Netherlands: income determination.

11. France

France's exit tax applies only if you were French-resident for at least six of the last ten years and hold participations worth at least EUR 800,000 in total, or at least 50% of a company. It reaches shares and company rights, plus certain deferred capital gains. The standard burden is usually the 30% flat tax (PFU — 12.8% income tax plus 17.2% social levies), and more in special cases (very high earners can face an additional exceptional-income contribution).

Deferral is automatic for moves to EU/EEA states and certain cooperative third countries. If you simply hold the securities, the latent-gains tax can be relieved after two years — or after five years where net worth exceeds EUR 2.57 million (and it is cancelled entirely if you return to France with the assets in time).

Sources: Syntaxe — The French exit tax in a nutshell; SRDB Law Firm — Exit tax in France 2025.

12. Spain

Spain requires tax residency in at least 10 of the last 15 years before the exit tax bites. It reaches shares and holdings where their total value exceeds EUR 4 million, or where you hold at least 25% of a company and that stake is worth more than EUR 1 million. The deemed gain is taxed under the Spanish savings-income scale — currently roughly 19% to 30% depending on the size of the gain (the top 30% bracket, on gains above €300,000, took effect in 2025).

For moves to EU/EEA states there is generally no immediate payment; instead, tax falls due on certain events within a monitoring period. The very high entry thresholds mean this regime affects only substantial holders.

Sources: Devesa — Change of tax residence and exit tax; PwC — Spain: income determination / savings tax rates.

13. Japan

Japan's exit tax captures certain financial assets and derivatives where their total value is at least JPY 100 million. It generally requires five years of Japanese residence within the last ten — but time spent under most work-visa (Table 1) statuses is excluded from the count, so many foreign professionals are effectively exempt; it mainly bites permanent residents, spouse-visa holders and Japanese nationals. Covered assets include shares, fund units, bonds and derivatives, but not ordinarily cash or real estate.

On the rate, a common misconception is worth correcting: the exit tax on the deemed gain is 15.315% (15% national plus the 2.1% reconstruction surtax) — national tax only. The 5% local inhabitant tax does not apply, so the total is not the 20.315% figure you see quoted for actual share sales by residents. Deferral of generally five years (extendable to ten) is available against security and with a Japanese tax agent appointed.

Sources: PwC — Japan: income determination; Grant Thornton Japan — Exit tax bulletin.

14. South Korea

Korea's exit tax applies mainly to certain large shareholders who leave after longer residence (broadly, tax-resident for at least five of the last ten years and meeting a major-shareholder ownership or value test). Historically the focus was shares in Korean companies, giving it a much narrower reach than Canada or Australia. The burden is progressive — 20% up to KRW 300 million of gain and 25% above, plus a 10% local surtax, so 22% / 27.5% effective (not a flat 22%).

The big development: an expansion to foreign/worldwide shares is now enacted, effective for departures on or after 1 January 2027 (passed in the December 2025 tax reform). For overseas shares the major-shareholder condition is waived — the five-year residency test alone can trigger it — with an exemption for overseas shares valued at KRW 500 million or less. Treat the exact domestic thresholds as moving, as the listed-share value test is itself being lowered.

Sources: PwC — Korea: other taxes / capital gains; KPMG — Korea 2025 tax reform (GMS Flash Alert).

Low or highly specific burden

15. Belgium

Belgium has moved from proposal to law. Its new tax on private capital gains on financial assets (nicknamed the "solidarity contribution") was adopted by Parliament on 3 April 2026 and published on 21 April 2026, applying to gains realised from 1 January 2026. The base rate is a flat 10%.

Crucially, only gains that accrue after the new system's introduction are taxed — assets step up to their 31 December 2025 value, so historical gains are exempt. A general annual exemption of €10,000 applies (with higher, graduated thresholds for substantial participations of 20% or more). The exit-tax component treats emigration as a deemed disposal of financial assets, but with automatic deferral for EU/EEA moves: tax is only actually due if you sell within 24 months of departure — otherwise it is cancelled. Despite the broad asset definition, the burden is comparatively low.

Sources: PwC Belgium — Comprehensive capital gains tax changes from January 2026; RSM Belgium — Law introducing capital gains tax on financial assets.

16. New Zealand

New Zealand has no general exit tax on worldwide private assets and no comprehensive general capital gains tax. (A CGT has been ruled out by the current government; an opposition proposal for the 2026 election is just that — a proposal, not law.)

On ceasing tax residency, however, some narrow wind-up rules can apply — notably to certain Foreign Investment Fund (FIF) interests and to financial-arrangement and foreign-currency arrangements. FIF interests can be deemed disposed at market value (individuals with FIF interests costing under NZD 50,000 in total sit outside the FIF rules). This is a narrow, technical special rule — not a general exit tax comparable to Canada's or Australia's.

Sources: Inland Revenue (IRD) — Leaving New Zealand; IRD — Foreign investment fund rules and exemptions.

A closing word from Nestfainder

Exit taxation is one of the most under-appreciated risks in an international move, and one of the most planning-sensitive: the difference between a well-timed relocation and a poorly-timed one can be a seven-figure tax bill. The good news is that most of these regimes offer thresholds, deferrals, and relief mechanisms — but capturing them requires getting the sequence and the paperwork right before you leave.

This guide is for orientation only and is not tax, legal, or financial advice. Nestfainder is not a tax advisor or law firm. Please speak to a qualified tax lawyer or tax advisor in both your departure and destination countries before making any decisions.

Last reviewed: July 2026. Figures reflect the 2025–2026 legal position as understood at the time of writing.