also called expatriation tax · deemed disposal
A tax some countries charge when you leave tax residency or renounce citizenship, often treating your assets as if sold on departure.
An exit tax is a bill some countries hand you for leaving, either giving up tax residency or renouncing citizenship, and they often pretend you sold everything you own the day you go. It looks like capital gains tax, but ordinary capital gains only apply when you actually sell; this one fires on paper gains you have not cashed in. That timing is why the order and structure of your move matter before you leave.
You built up a big holding of company shares while living somewhere, then decide to move on. On the way out the country treats those shares as if sold that day and taxes the growth, so you owe real money on a gain you never turned into cash.
Leaving can trigger a large one-off tax on unrealised gains, so timing and asset structure before departure matter.
The difference is the whole point, so here is each one in a line.
These tax what you own rather than what you earn.
Capital gains tax hits the profit when you sell an asset, a wealth tax is an annual charge on the total value of your assets, and inheritance tax falls on an estate when someone dies.
An exit tax is charged by some countries when you stop being resident or renounce citizenship, often treating your assets as if sold on the way out.
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