Dubai, Cyprus or the Canary Islands: Many creators are thinking about moving. We clear up the most common mistakes.
Myth 1: Unsubscribe is enough
The deregistration at the residents’ registration office does not end the German tax liability. The decisive factor is whether there is still a place of residence or habitual residence in Germany. Even an apartment that can be used at any time can suffice.
Myth 2: There are no taxes abroad
Even after the departure, Germany can tax certain income. German nationals who move to low-tax countries can remain subject to limited tax liability for up to ten years. Anyone involved in a GmbH must observe the withdrawal tax.
Myth 3: The Canary Islands and Mallorca are tax havens
Spanish income tax applies to private individuals in the Canary Islands and the Balearic Islands. In the Canary Islands there are advantages for companies with substance in the special economic zone ZEC, and no special rules in the Balearic Islands.
Practical examples
Second home in Berlin
Situation: A creator moves to Dubai, but keeps his apartment in Berlin.
Classification: He remains subject to unlimited tax liability in Germany.
Recommendation: Give up your apartment or replan your move.
GmbH shares
Situation: A creator with his own GmbH moves to Cyprus.
Classification: Withdrawal tax on the hidden reserves is due.
Recommendation: Schedule valuation and installment payments in advance.
Winter in Tenerife
Situation: A couple spends every winter on Tenerife.
Classification: There is no real move.
Recommendation: Plan as a stay, not as a tax model.
Conclusion
Moving out can make sense if well planned. The biggest mistakes happen in Germany, not in the destination country.
Do you have questions on this topic? More on this on our page Move and relocation or directly via our Initial assessment.
Frequently asked questions
Am I no longer taxable after moving abroad in Germany?
Not automatically. Anyone who still keeps an apartment in Germany or is mostly here remains subject to unlimited tax liability. In addition, the extended limited tax liability can apply for more years.
What is Move Taxation?
Anyone who holds shares in a corporation and moves abroad may have to pay tax on the hidden reserves as if they had sold the shares. This affects many creators with their own GmbH and should be planned before the move.
Which countries are popular for influencers?
Dubai, Cyprus, Malta, Portugal, Switzerland and Andorra are often elected, and the Canary Islands and Balearic Islands are increasingly also elected. The decisive factors are double taxation agreements, the right of residence and the actual lifestyle on the ground.
Further information: Relocation and move away · Tax law for influencers