Do I pay German exit tax (Wegzugsbesteuerung) when I move to Cyprus?
Short answer
Yes, if you were fully taxable in Germany for at least seven of the last twelve years and held at least 1% of any company, German or foreign, at any time in the last five years. Leaving is taxed as if you had sold the shares at their market value.
Since 2022 the same rules apply to moves within the EU and outside it. On application, the tax is paid in seven equal yearly instalments, without interest but usually against security. The rest falls due early if you sell or give away the shares, if distributions exceed a quarter of their value, or if an instalment is missed.
If you return and are fully taxable in Germany again within seven years, the tax lapses, provided the shares have not been sold and the conditions on distributions are met; the tax office can extend that period by up to five years.
A Cyprus company you already own counts too, because the 1% test covers any company.
Sources
- Außensteuergesetz, §6: Wegzugsbesteuerung (gesetze-im-internet.de) gesetze-im-internet.de
- Einkommensteuergesetz, §17 (gesetze-im-internet.de) gesetze-im-internet.de
Information, not advice. This answer describes the published rules as they stand on 12 October 2026, checked against the sources listed. Tax and residence rules depend on your own circumstances and change; check your position with a tax adviser qualified in Germany and in Cyprus before you act on it.
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