Europe · Western Europe

Germany

Europe's largest economy now offers dual citizenship and naturalisation in five years — but it also operates one of the continent's most aggressive exit taxes, extended in 2025 to reach ordinary investment fund holdings, which means the door in is wider than the door out.

Last verified July 2026190 visa-free destinations

Tax position

Income tax (top): 45% 'Reichensteuer' above roughly EUR 278,000, plus the 5.5% solidarity surcharge on the tax itself (an effective 47.475%), plus church tax of 8–9% of the tax if registered to a religious community
Capital gains: 25% Abgeltungsteuer plus solidarity surcharge, so 26.375% effective, on portfolio income and gains. Shareholdings of 1% or more fall under §17 EStG and the partial-income method at progressive rates. Real estate gains are exempt after a 10-year holding period (3 years if owner-occupied)
Wealth tax: none — the wealth tax has been unenforced since the Federal Constitutional Court struck down its valuation basis in 1995 and collection stopped in 1997. It resurfaces in every election cycle but has not been reinstated
Inheritance tax: 7–50% by relationship class. Spouses and children fall in Class I at 7–30% with allowances of EUR 500,000 and EUR 400,000 respectively; unrelated beneficiaries face Class III at 30–50%. Worldwide assets are in scope for German residents, and a 5-year tail follows departing German nationals
Special regime: none — Germany has no expat, non-dom or inpatriate tax regime whatsoever
Territorial: No — worldwide income taxed
CFC rules: Yes
Exit tax: Yes — leaving has a cost
CRS: Participating