investors to face border closures, as of 2025, with implementation of fresh tax on funds and ETFs
Heading: Sayin' Bye-Bye to Germany? Watch Out for That Exit Tax on Your Fund Shares, Commencin' in 2025! 😈
Taxin' Times A-Changin' 💰
Get ready for some big changes comin' down the pipeline, folks! In 2025, Germany's gonna start saddlin' ya with a new levy on yer fund shares when ya pack up and leave. But don't fret, ya scallywags! It ain't as tough as it seems. Here's a lowdown on what to expect.
The Tax Cometh 💸
As of January 1st, 2025, they're callin' it an "exit tax." This used to only apply to corporate shares owned by investors with a one percent stake in a company. Now, fund investors bailing on Germany gotta dish out auf taxes on their investments, even if those shares keep on earnin' in yer portfolio. A "fictitious disposal tax" will be slapped on any unrealized gains ya've made since acquisin' those shares - none of which ya gotta actually sell to get hit with the taxes.
Calculatin' the Levy 🧮
The tax man'll determine the value of yer fund and ETF shares the day afore ya leave Germany. That figure is gonna serve as the tax base for the exit tax. They'll calculate the tax owed by subtractin' the cost of aquisition from the market value on that day. If yer fund or ETF don't distribute gains, they might require some hefty documentation to sort out the tax burden. The taxrate is a combined 25 percent capital gains tax, 5.5 percent solidarity surcharge, and up to nine percent church tax, totalling a maximum of 27.99 per cent.
Payin' Up 💸
The exit tax ain't due right away, but it can be paid in installments if ya movin' to an EU/EWR country. If ya headin' to Third World, ya might get the chance to delay payin' with some conditions, though the rules can get pretty strict.
Waggin' the Taxman
In light of the imPending exit tax on fund shares in Germany come 2025, individuals within the finance sector may want to consider the potential impact on their business operations. For those planning a move, they should be aware that an unrealized gain on their fund and ETF shares will be subject to a fictitious disposal tax, with a combined tax rate reaching up to 27.99%.
