What about your assets?
Before you finally break off the tents in Germany, of course, you have to deal with the existing assets and redeploy them if necessary. Why? The buzzword here is "essential economic interests". If these continue to exist in Germany, a set of instruments will be used by the tax authorities to secure the German tax revenue.
Extended limited tax liability
In Germany, they are subject to extended restricted tax liability. What is meant by this?
- The personal requirements are German citizens
- in the last ten years at least five years unlimited taxable in Germany
- Move into a low tax country or in a foreign country. Low-tax countries are already countries where the tax rate is thirty percent lower than in Germany.
The material requirements (essential economic interests) are:
- You are involved in a corporation with at least 1% or
- You are still involved in a partnership (not as a limited partner) or
- You are a limited partner and receive more than 25% of the profit
Too much German wealth?
But too much German wealth can have unpleasant consequences:
If you still have assets exceeding 30% of your global assets or 154.000 Euro in Germany, you will also be subject to the extended limited tax liability as well as your income from Germany more than 30% of the world income at least 16.500 Euro in any case with more than 62.000 Euro exceed.
What can you do?
There is hardly anything to be done about the personal requirements, but very much on factual obstacles imposed by the German financial administration.
- So, before you finally say goodbye to your homeland, you should divest shareholdings in corporations greater than 1 percent, or give them away as part of the anticipated succession.
- The same applies to a participation in a private company if they are fully liable. Risk of further taxation exists for limited partners only (as a limited partner) if you receive more than 25% of the profit distributions.
- The restriction of the earnings reference can also provide for a relaxation in the new home country.
If you now also manage your assets according to the requirements of the German treasury, you can not stand in the way of a decent evening of life, at least tax-free.
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