Exit Tax in Europe: Which Countries Tax You for Leaving

By Dubai Tax Resident Editorial Team · Last reviewed: October 2026

An exit tax is a tax your home country charges on gains you have not yet realised, triggered simply because you stop being its tax resident. In Europe it mainly targets company shares and investment portfolios. Germany, France, the Netherlands, Austria, Denmark and, since 2026, Belgium all have some form of exit tax for individuals. The UK, Finland, Sweden and Italy do not have a general one, but use other rules to keep taxing people who leave. The UAE itself charges no exit tax.

If you own a company or a sizeable share portfolio, the exit tax can be the single largest cost of moving to Dubai. This guide explains how it works, compares the main European countries and shows what to check before you leave.

How does an exit tax work?

When you give up tax residency, your home country loses the right to tax future sales of your assets. To protect its claim on gains built up while you lived there, it treats you as if you had sold certain assets on the day you left. The tax is calculated on the difference between the market value at departure and your original cost.

Because no money changes hands, most countries offer some form of deferral or instalment plan. These are usually generous for moves within the EU or EEA and much stricter for moves to third countries such as the UAE, where the home country may require security, a local representative or immediate payment.

Exit tax by country

Germany

Germany’s exit tax (Wegzugsbesteuerung, section 6 of the Foreign Tax Act) applies if you hold at least 1% of a corporation, in Germany or abroad, and have been fully tax resident in Germany for at least seven of the last twelve years. The gain is taxed under the partial-income method, so 60% of it is taxable at your personal rate. Since 2022 the tax can be paid in seven annual instalments, usually against security, regardless of whether you move inside or outside the EU. Germany also has an extended limited tax liability for German citizens who move to low-tax countries while keeping significant economic interests in Germany. Official information is available from the Federal Central Tax Office (BZSt) and the Federal Ministry of Finance.

France

France’s exit tax (article 167 bis of the General Tax Code) applies if you were tax resident in France for at least six of the last ten years and hold shares worth at least EUR 800,000 in total, or at least 50% of a company’s profits. Latent gains are taxed at the flat rate (PFU), which rose to 31.4% from 2026, made up of 12.8% income tax and 18.6% social charges. Deferral is automatic for moves to EU or EEA countries and to countries with suitable administrative and recovery assistance agreements. For other destinations, you may need to request deferral and provide guarantees. The tax is cancelled if you keep the shares for two years after leaving, or five years for holdings above EUR 2.57 million. See impots.gouv.fr for current guidance.

Netherlands

When you emigrate from the Netherlands, the tax authority issues a protective assessment (conserverende aanslag) on a substantial interest, meaning a holding of at least 5% in a company, and on pension and annuity rights. You do not pay immediately, but the tax becomes due if you sell the shares or receive certain distributions. For emigrations after 15 September 2015, the protective assessment on a substantial interest no longer expires after ten years. Details are published by the Belastingdienst.

Belgium

Belgium introduced a capital gains tax on financial assets with effect from 1 January 2026, with a general rate of 10%. Leaving Belgium is now treated as a deemed realisation of latent gains on shares, funds, bonds, crypto and similar assets, although gains accrued before 2026 are protected. Payment can be deferred automatically for moves to countries meeting information-exchange and recovery-assistance conditions, and the claim lapses if the assets are not sold within 24 months. Whether a move to the UAE qualifies needs to be checked case by case with the FPS Finance.

Austria

Austria taxes hidden reserves in capital assets, such as shares and fund units, when you move abroad, at the special capital income rate of 27.5%. Instalment payment is mainly available for moves within the EU or EEA. For moves to third countries such as the UAE, the tax is generally due straight away, so planning the timing matters.

Denmark

Denmark applies an exit tax to unrealised gains on shares for people who have been fully tax liable for at least seven of the last ten years and whose shareholdings exceed a value threshold. The tax can be deferred as an interest-bearing credit, typically with reporting obligations until the shares are sold.

United Kingdom

The UK has no exit tax for individuals. Instead, the temporary non-residence rules apply: if you are non-resident for five years or less, certain gains and income you realise while abroad can be taxed when you return. Your residence status is decided by the Statutory Residence Test. See GOV.UK for HMRC guidance.

Finland

Finland has no exit tax for individuals. However, a Finnish citizen remains tax resident for the year of departure and the following three years unless they can show they no longer have essential ties to Finland. See the Finnish Tax Administration.

Sweden

Sweden has no general exit tax, but two rules have a similar effect. If you lived in Sweden for at least ten years, you can remain tax resident for five years after leaving if you keep an essential connection. In addition, gains on Swedish shares sold within ten years of leaving may still be taxed in Sweden, depending on the tax treaty.

Italy

Italy’s exit tax applies to business assets when a business or company moves abroad, not to private shareholdings of individuals. Individuals must deregister through the AIRE register, and Italian citizens moving to certain low-tax jurisdictions can face a presumption that they remain resident until they prove otherwise.

Comparison table

What to check before you move

1. Map your assets. List shareholdings, funds, pension rights and crypto, with acquisition costs and current values.
2. Check the thresholds. Many exit taxes only apply above a holding size or after a minimum number of years of residence.
3. Get a valuation. For private companies, the departure value is often disputed, so a documented valuation is essential.
4. Review deferral options. Understand what security, reporting or representation your home country requires for a UAE move.
5. Plan the timing. The date you lose residency determines the valuation date and sometimes which rules apply.
6. Build your UAE position. A residence visa, a home and a Tax Residency Certificate support your claim that residency has actually moved.

Frequently asked questions

Disclaimer: This article provides general information only and is not tax or legal advice. Exit tax rules are complex, change frequently and depend on your personal circumstances; consult a qualified adviser in your home country before acting.