German Exit Tax Calculator - Oliver Eidel

exit-tax-calculator#loadExample"<br>data-adjusted-earnings="200000"<br>data-current-ceo-compensation="80000"<br>data-substance-value="0"<br>data-ownership-percentage="100"<br>data-acquisition-cost="25000"<br>data-has-recent-transaction="false"><br>Profitable company<br>€200k yearly earnings · €80k CEO compensation

exit-tax-calculator#loadExample"<br>data-adjusted-earnings="-20000"<br>data-current-ceo-compensation="0"<br>data-substance-value="20000"<br>data-ownership-percentage="100"<br>data-acquisition-cost="1000"<br>data-has-recent-transaction="false"><br>Indie hacker<br>€20k yearly loss · no CEO salary · €20k asset value

exit-tax-calculator#loadExample"<br>data-adjusted-earnings="0"<br>data-current-ceo-compensation="0"<br>data-substance-value="500000"<br>data-ownership-percentage="50"<br>data-acquisition-cost="12500"<br>data-has-recent-transaction="true"<br>data-shows-yc-note="true"<br>data-recent-transaction-value="15000000"><br>YC-funded startup<br>€15m illustrative round value · 50% founder ownership

YC’s standard deal<br>does not set one fixed valuation: $125k converts to 7%, while $375k uses an uncapped MFN SAFE. YC uses a $15m post-money cap in its own typical next-round example; this card models €15m for a simple illustration.

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Your inputs

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Average adjusted annual earnings

Use the three-year average operating result after valuation adjustments and the CEO compensation below, but before the statutory 30% reduction.

Current annual CEO compensation

Enter total salary, bonuses, and benefits already included in earnings. Enter €0 if you worked unpaid.

Asset value

Optional. Enter assets at market value minus liabilities—not merely the balance-sheet book value.

Ownership

Share acquisition cost

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Recent third-party transaction or funding round<br>A sale between unrelated parties within the last year may determine fair value instead.

Read why<br>raising funding before leaving Germany can create an exit-tax problem.

Implied total company value

Why use €232,000 for CEO compensation?<br>It is the midpoint of the €198,000–€266,000 range for an owner-manager in the smallest “Other services” category of the 2024 Karlsruhe table. This is a rough proxy for a small software company, applies formally only as guidance, and may be inappropriate for your facts.

Learn more about reducing the valuation through an arm’s-length CEO salary in<br>the simplified capitalized earnings valuation guide.

Your estimate will appear here.

Enter the average adjusted annual earnings to see an estimate.

Estimated exit tax

Range based on marginal income-tax rates of 42%–45%. Church tax is excluded.

The recent transaction value is used as the primary valuation. The earnings result remains visible only for comparison.

Valuation breakdown

Karlsruhe CEO benchmark<br>€232,000

Additional CEO salary deduction

Normalized earnings

After statutory 30% reduction

Earnings valuation × 13.75

Recent transaction value

Asset-value floor

Estimated company value

Tax breakdown

Ownership

Estimated share value

Less acquisition cost

Deemed capital gain

Taxable 60% share

Income tax at 42%–45%

Including 5.5% solidarity surcharge

Each of seven annual installments<br>If an installment application is accepted

How this German exit tax calculator works

Germany can treat shares in a corporation as if they had been sold when a shareholder leaves the country, even though no cash changes hands. This German exit tax calculator estimates the company value, the gain attributed to your shareholding, and the resulting tax range. It is designed for founders and owners of corporations such as a GmbH or startup; it does not calculate the separate exit-tax rules for ETFs or other investment funds.

Estimating the company value

The calculation starts with average adjusted annual earnings, normally based on three completed financial years. It then compares your current CEO compensation with the €232,000 benchmark used here. If you worked unpaid or below that benchmark, the difference is deducted to approximate an arm’s-length managing-director salary. If your compensation was higher, the model adds the difference back. This is only a standardized proxy: an appropriate salary depends on the company, industry, responsibilities, and individual facts.

Positive normalized earnings receive the statutory 30% reduction and are multiplied by 13.75 under the simplified capitalized earnings method. The calculator then applies the asset value as a floor. When you enter a recent third-party transaction or funding round, its implied company value replaces the earnings valuation as the primary value, while the asset-value floor still applies.

Turning the valuation into an exit-tax estimate

Your ownership percentage determines the estimated value of your shares. The calculator subtracts their acquisition cost and treats the remaining...