IMI Podcasts · Christian Henrik Nesheim

The Final Shakedown: 8 Countries That Tax You for Leaving

March 17, 2026·24 min·2 clips

What will your current country charge you for leaving, taxing unrealized gains as if you sold everything the day before you left?

The episode begins by introducing exit taxes as a hidden cost of international relocation, where governments tax unrealized gains on worldwide assets upon departure. It explains the deemed disposition mechanism common across jurisdictions. The U.S. system is highlighted as unique for tying the tax to citizenship renunciation, with a $2 million net worth threshold and harsh treatment of retirement accounts. Canada's departure tax applies broadly to assets like stocks and cryptocurrency, with a 50% inclusion rate and deferral options requiring security. Japan's exit tax has a low threshold of 100 million yen and catches many long-term expats, especially those with permanent residency. Norway's 2025 rules are described as aggressive, featuring a 37.84% effective rate, mandatory dividend acceleration for repayment, and an ongoing EFTA investigation. France's exit tax includes a forgiveness period if assets are held post-departure, and a recent failed proposal for extended post-departure taxation. Denmark imposes one of the lowest thresholds at 100,000 Danish kroner. Germany targets shareholders with at least 1% stakes, while Spain and the Netherlands focus on substantial company interests. Austria taxes all financial assets with no threshold but offers indefinite deferral within the EU. Australia and South Africa have their own exit tax regimes through capital gains events. The UK does not currently have an exit tax but is considering one. Italy, Portugal, Belgium, and Switzerland do not impose exit taxes, offering advantages for mobility planning. The episode concludes by discussing planning strategies, the link between wealth taxes and exit taxes, and the overarching importance of exit costs in relocation decisions.

As heard by us

Leaving can trigger tax on gains that have not been realized.

The episode makes exit taxes concrete by showing how a government can treat unrealized gains as if they were sold the day before someone leaves, then tax the paper profit when residency changes or citizenship is renounced.

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Why you'd press play

Find out how leaving can still trigger a tax bill on gains you never cashed out.

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