Exit tax in 2026: what it costs to leave your country

The five countries at a glance

Spain

The Spanish exit tax applies when you stop being resident after having been resident for at least 10 of the last 15 tax years, and either your shares and holdings are worth more than €4 million in total, or you own more than 25% of a company and that holding is worth more than €1 million. In the second case, only that holding is taxed.

The gain, market value minus acquisition cost, is taxed in your last Spanish tax return as savings income, at 19% to 30% in 2026.

There are two ways to defer it:

• Moving to another EU or EEA country with effective exchange of information. You can opt for a special regime: you only pay if, within 10 years, you sell the shares, stop being resident in the EU or EEA, or fail to notify the tax agency.
• Temporary moves for work to a country that is not a tax haven, or for other reasons to a country with a treaty that includes exchange of information. The tax is deferred on request, and is cancelled if you become a Spanish taxpayer again within five years without having sold.

If you return to Spain without having sold, you can claim back what you paid, with interest. A further rule matters for Spanish nationals: if you move to a non-cooperative jurisdiction, you remain a Spanish taxpayer in the year of the move and the following four. The UAE, Cyprus and El Salvador are not on that list.

Germany

The German Wegzugsteuer applies if you held at least 1% of a company, directly or indirectly, at any time in the last five years, and you had unlimited tax liability in Germany for at least 7 of the last 12 years. The trigger is giving up your German residence or habitual abode, but also other events that restrict Germany's taxing rights, such as gifting shares to someone abroad.

The deemed gain is the difference between fair value and cost. Under the partial income method, 60% of it is taxed at your personal rate. Since 2025, the tax also covers investment fund units when you hold at least 1% of a fund or paid at least €500,000 for units of one fund.

Since 2022 there is no longer an indefinite interest-free deferral for moves within the EU: EU and non-EU destinations are treated alike. On request you can pay in seven interest-free annual instalments, usually against security. If you return to Germany within seven years, a period that can be extended by five, the tax can be reversed under certain conditions.

France

The French exit tax, article 167 bis of the tax code, applies if you were tax resident in France for at least 6 of the last 10 years and, on departure, you hold securities worth more than €800,000 or at least 50% of a company's profits.

The gain is taxed at the flat tax: 12.8% income tax plus social charges. In 2026 those social charges rose to 18.6% on most capital income, so the total flat tax is 31.4%.

• EU and EEA, and countries with tax-assistance and recovery agreements with France, such as the UK and the US: automatic deferral, without guarantees.
• Other countries, such as the UAE, Switzerland or El Salvador: deferral on request, with a guarantee.
• Non-cooperative states: no deferral.

The tax is cancelled if you do not sell the securities for 2 years after leaving, when they are worth €2.57 million or less, or for 5 years above that.

Italy

Italy has no general exit tax for individuals who hold shares outside a business: changing residence is not a taxable event, and the gain is only taxed if and when you sell, under the applicable treaty. The Italian exit tax, article 166 of the income tax code, applies to those carrying on a business activity, companies and entrepreneurs, that transfer their tax residence abroad, on the latent gains of the business assets.

United Kingdom

The UK has no exit tax for individuals. The Autumn Budget of 28 October 2026 did not introduce one, nor did it raise capital gains tax rates, despite months of speculation.

What does apply are the temporary non-residence rules. If you were solely UK resident for at least 4 of the 7 tax years before leaving and your period abroad lasts five years or less, gains you realise while abroad on assets you held before leaving are taxed in the year you return. Companies that move their tax residence out of the UK face a corporate exit charge.

How to plan for it

1. Check the thresholds and dates now. The years of residence and the value are measured on the day your residency changes.
2. Value your shares properly with a defensible method: it is the base of the tax and of any later dispute.
3. Choose the destination with the exit tax in mind. For Spanish and French residents, an EU destination such as Cyprus allows deferral; a non-EU one such as Dubai usually means paying or guaranteeing.
4. Time the move. In Spain and France, a move before reaching the years of residence or the threshold changes everything.
5. Do not restructure at the last minute without advice. Transfers of shares just before leaving are reviewed closely by tax authorities.

We calculate the exit tax at the start of every assessment, so you decide with all the numbers on the table. Compare destinations in Cyprus vs Dubai vs El Salvador.

This guide is general information, not tax or legal advice. Every case needs individual analysis.