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It's probably generally a bad idea to start a company in a country you intend to leave permanently. What's the point of having a company in Germany if you're no

by yorwba 3y ago

It's probably generally a bad idea to start a company in a country you intend to leave permanently. What's the point of having a company in Germany if you're not in Germany yourself? Most companies in Germany are probably started by people who intend to stay, or are subsidiaries of international conglomerates, or have not gained enough in value to cause a significant tax burden, so the edge cases affected by the exit tax are unlikely to move the needle on business-friendliness indices like this one. (Especially in comparison to other countries with similar laws.)

JumpCrisscross 3y ago
> bad idea to start a company in a country you intend to leave permanently Agree if the intention is there from the beginning. Disagree that the inflexibility doesn’t have a cost. Even if you fully intend to stay in Germany, are you 100% sure that’s the best decision for your business? If the answer is no, the law incentivises moving preemptively.
- yorwba 3y ago
  I wasn't trying to say that there is no cost, I was pointing out that the cost is not large enough to affect the ranking on this index. With an index composed of many different factors, you can always focus on one aspect that is particularly positive or negative, but that doesn't mean the overall ranking is wrong just because it also takes other factors into account. The EIU gives Germany an overall score of 8.35. How much higher should it be if the exit tax were abolished? How much higher if it's not abolished, but deferred until the capital gains are realized?
  - hnhg 3y ago
    It raises the possibility that it perhaps isn't a useful index.
hnhg 3y ago
You might have a sick relative and want to temporarily spend some time with them. Or you might need to relocate to lead expansion to another market. Or move to the sun after retirement but still keep ownership of some shares to pass on to your children. There are a range of unplanned scenarios that can lead to that. For many, it is not worth the risk.
- yorwba 3y ago
  If you leave for less than 7 years (less than 12 if you file for permission), you're not covered by the exit tax. That should cover anything truly temporary at least.

by yorwba 3y ago

JumpCrisscross 3y ago

> bad idea to start a company in a country you intend to leave permanently Agree if the intention is there from the beginning. Disagree that the inflexibility doesn’t have a cost. Even if you fully intend to stay in Germany, are you 100% sure that’s the best decision for your business? If the answer is no, the law incentivises moving preemptively.

yorwba 3y ago
I wasn't trying to say that there is no cost, I was pointing out that the cost is not large enough to affect the ranking on this index. With an index composed of many different factors, you can always focus on one aspect that is particularly positive or negative, but that doesn't mean the overall ranking is wrong just because it also takes other factors into account. The EIU gives Germany an overall score of 8.35. How much higher should it be if the exit tax were abolished? How much higher if it's not abolished, but deferred until the capital gains are realized?
- hnhg 3y ago
  It raises the possibility that it perhaps isn't a useful index.

hnhg 3y ago

You might have a sick relative and want to temporarily spend some time with them. Or you might need to relocate to lead expansion to another market. Or move to the sun after retirement but still keep ownership of some shares to pass on to your children. There are a range of unplanned scenarios that can lead to that. For many, it is not worth the risk.

yorwba 3y ago
If you leave for less than 7 years (less than 12 if you file for permission), you're not covered by the exit tax. That should cover anything truly temporary at least.