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Comment by earcar | Hacker News Reader

That is refreshing to hear. Unfortunately I can't get out because of exit tax, an unrealized capital gains tax for the privilege of leaving the country. That is way worse than what I mention in this post and will get its own post soon.

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You phrase this as if it’s absurd. Why should it be possible to offshore your future capital gains without paying an exit tax? You live in a country with a tax system that assumes people pay into it.

Unrealized capital gains taxes generally are a bit absurd, but I can see how the state would feel forced to do it if you're leaving. Seems like there should be some way to get a registered agent or something to keep the old company legally "in Germany" while you leave, but idk

You can avoid being taxed on unrealized gains by realizing them first ;)

It is absurd to be taxed on _unrealised_ gains, even more absurd to hold you hostage over it.

You can delay it until the disposal of your shares , if you move within the Eu

That is nothing: wait until you want to _close_ a company in Germany :)

I'm wondering what the problems can be because I've not experienced that (or heard it first hand).

Is it different from the tax you would face if you just realize your gains?

The exit tax doesn't apply to "gains", it applies to the "value of your company" which is calculated in a way that often means you will owe thousands or even millions in money you don't have, and at no time had.

Sounds indeed pretty terrible…

Yes - the value of your company is the gain. It is the money you would have if you sold the whole thing.

It's only a gain if you sell.

Selling a company and paying tax on the profit in tax is a completely different proposition from paying tax on hypothetical profit you haven't made (and might never make) just because you want to move.

That's what unrealized means. Gains you haven't got because you haven't sold.

and if we started taxing them across the board, no one would dare hold stock

Most unrealized gains are a notional value, the realizable gains are often much smaller. The act of realization can cause a crash in value.

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