By Bill Anderson, FCCA, Chief Executive Officer, Assetica — 2026-07-09
Move from Germany to Dubai holding 1 percent or more of a GmbH and section 6 AStG deems your shares sold at fair market value on the day you leave, with no treaty relief since the Germany-UAE DTA lapsed. The tax is real money on paper gains, and the number it runs off is the valuation. How the deemed sale works, what drives the value, and how to keep the German and UAE numbers consistent.
Section 6 AStG applies to individuals with unlimited German tax liability for at least seven of the last twelve years who hold at least 1 percent of a corporation. Departure triggers a fictitious disposal at fair market value, taxed under the partial income method (roughly 60 percent of the gain at the personal rate) with no buyer and no proceeds. Since 2022 the charge is assessed immediately for all destinations, payable over seven annual instalments normally against security, with relief if you return within the statutory window.
Germany's double tax treaty with the UAE lapsed, so there is no treaty allocation of taxing rights to soften the exit. The Wegzugsteuer applies with full force and later cross-border questions follow domestic law. Planning happens on the German side before departure: timing, holding structure, and above all the value that will be assessed.
Without a recent arm's length sale, the tax office defaults to the standardised earnings method, capitalising past average earnings with a fixed multiplier. For young, volatile or asset-light businesses it routinely overstates value. The law allows a different value to be demonstrated by an accepted method, and an independent IDW S1 and IVS-consistent valuation with normalised earnings, a defensible discount rate and documented company risks frequently supports a materially lower fair market value. Every euro removed reduces the fictitious gain.
The Wegzugsteuer value must not contradict the UAE file: the GDRFA Golden Visa report (stake worth at least AED 2 million, about EUR 500,000) and any UAE holding structure priced at arm's length for the FTA. One valuation exercise with one date and methodology, formatted for the Finanzamt and the GDRFA, keeps the story straight.
Who is caught by the Wegzugsteuer?
Individuals who were subject to unlimited German tax liability for at least seven of the last twelve years and hold at least 1 percent of a corporation (GmbH, AG or comparable foreign company) when they move their residence out of Germany. The classic case is the GmbH founder.
Can the tax be deferred?
Since the 2022 reform the charge is assessed on departure for all destinations, with payment spreadable over seven annual instalments, normally against security. If you return to Germany within the statutory window and meet the conditions, the charge can fall away retroactively.
How is the company valued if there was no sale?
The default is the standardised earnings method, capitalising past average earnings with a fixed multiplier. A taxpayer may instead demonstrate fair market value through an accepted valuation method, and an independent IDW S1 and IVS-consistent report frequently supports a lower, more accurate value than the formula.
Does the lapsed Germany-UAE treaty change anything?
Yes: there is no treaty relief on the Dubai route, so the Wegzugsteuer applies with full force. Planning happens before departure, on the German side, with the valuation as the main variable you can influence.
Can the same valuation serve the Golden Visa?
The underlying value can. The GDRFA needs its own format: an independent report isolating your stake, net of debt, against the AED 2 million threshold. Assetica prepares the German-side evidence and the GDRFA report from one valuation date and methodology so the two files agree.