Relocation of residence / business abroad
Relocation of residence, business and assets abroad: From the initial consultation through to implementation and ongoing advice, we are always happy to assist you with the relocation of your residence, assets and business to countries within and outside Europe, thanks to our team of solicitors, specialist solicitors and tax advisers who are highly specialised in the international arena.
It is particularly the affluent older generation who often find themselves wondering where they should spend their retirement. But younger, successful entrepreneurs and high-net-worth individuals are also increasingly faced with the question of whether to relocate their residence or business abroad. This is due, amongst other things, to the process of globalisation and modern means of communication and travel, but also to what is, in some cases, a heavy tax burden imposed by the state.
Thorough preparation is absolutely essential.
Particularly where tax considerations are a key factor in deciding to take up residence or relocate a business abroad, the tax implications of such a move should be conclusively clarified from a legal perspective in advance, to avoid any unpleasant surprises later on.
Under the Foreign Tax Act (AStG), the tax authorities have introduced provisions to extend tax liability in the cases mentioned above – known as „exit taxation“. The provisions relating to relocation to low-tax jurisdictions are specifically designed to prevent ‘tax evasion’. Furthermore, in many cases, a move abroad can, for tax purposes, lead to the realisation of hidden reserves tied up within the company. This can sometimes result in a tax burden that threatens the entire project, as there are generally no immediately available liquid funds to offset the tax liability.
Furthermore, after moving abroad, gifts or inheritances may still be subject to tax – even if the testator or donor and the heirs or donees are resident abroad.
Particularly when companies expand abroad, a thorough tax strategy is required in addition to an economic analysis, as this can give rise to extensive tax and record-keeping obligations in the home country.
Our team carefully analyses and assesses all the tax implications for you, so that you can make informed decisions and plan accordingly.