Exit Tax Crypto: What Happens When You Move Abroad

What is exit tax?

Exit tax crypto is a tax some countries charge when someone gives up tax residence and moves abroad. You're taxed on the increase in value of some assets, even if you haven't sold them. This system can cover crypto, shares, funds or gold you hold when you leave.

The point is to tax gains that built up while you lived there, before the state gives up its claim. An unrealized gain just means an asset is worth more but you haven't sold it yet. Exit tax looks at your assets as if you sold them at market value the day you go, so you'll see it called a deemed sale. For a look at what counts as a gain you pay tax on, see realised vs unrealised gains: when does tax apply.

Which assets and thresholds are usually covered?

Regulations differ a lot. There are some patterns:

Thresholds: many exit tax rules work only above a minimum value of assets or shareholding, or after living in the country for a certain number of years.
Asset types: shares, funds, crypto, and some types of business ownership are routinely included. Cash, in-country property and pensions often get separate treatment.
Deferral: within the EU, you can usually defer payment until you sell the asset, though you may have to pay interest or provide security.

Take Germany: it taxes major shareholdings if you move abroad. France applies exit tax to certain assets and lets you defer if you move within the EU. These are only examples, not full details, so it's best to check the specific law where you're moving from.

Why moving before selling does not always avoid tax

Some people think moving to a country with no capital gains tax means the gain slips through. Exit tax laws are written to prevent that, taxing the increase before you leave. Sometimes, if you come back after a few years, more rules apply. The new country may still tax you on a later sale under its own code.

Moving with lots of crypto or gold brings up valuation challenges. These prices shift fast, so your exit value may be higher or lower than what you get later. There's always a risk you could end up paying tax on a value you never actually received. Check tax treaties between the two countries for relief rules: see how double tax treaties prevent double taxation.

Worked example: leaving with crypto that has risen

Here's an example. Say you buy crypto for 10,000 euros as a resident. By the time you leave, it's climbed to 40,000 euros. Let’s assume the exit tax applies to the 30,000 gain.

You'll be taxed on a notional gain of 30,000 euros, even though you did not sell. If the market drops to 25,000 euros and you do sell, you’ve lost money compared to the exit value. Whether or how such a loss is recognized for tax depends on the country. The result: you might pay tax on a gain you never saw.

Frequently asked questions

Does exit tax apply to everyone who moves abroad?

No, it does not. Exit tax is usually only charged when someone gives up tax residence in a country with that rule. Often there’s a threshold in value or a requirement to have lived there for years first. The details change by country, so check the law before you move.

Can you pay exit tax later?

Sometimes. Within the EU, there’s often a right to defer payment until the asset is sold, sometimes at a cost in interest or with some security required. Other countries may not allow deferral at all. You should always confirm with the tax authority about deferral before leaving.

Should you get advice before moving with large holdings?

Yes. Exit tax can hit crypto, shares or gold, and it can trigger tax before a sale is made. It's best to contact the tax office in both places, or a tax professional, before moving. This article only gives general information and isn't tax advice.