Exit taxes will apply to private investors in investment funds who leave Germany and have purchased investment shares priced at a minimum of €500,000, including common exchange-traded funds. This was decided by the German Federal Parliament (Bundestag) and the German Federal Council (Bundesrat) via the Annual Tax Act 2024 (Jahressteuergesetz 2024).
The new regulation will apply starting January 1, 2025. However, investors can ensure that the exit tax does not apply or is only payable in installments – even after January 1, 2025. Similar rules on exit taxes are already applied to corporations and business investors, such as entrepreneurs. The new rule does not directly affect custodian banks and financial investment management companies.
