Any high net-worth individuals planning on emigrating or moving their business overseas as a result of tightening exit taxes should consider a full-time private home tutor for their families.
Tightening Exit Taxes
Michael Shaw’s article for the law firm, Macfarlanes, summarises:
“German law already imposes an exit tax on any inbuilt gain in the value of substantial shareholdings when the owner leaves Germany or gives shares to someone outside Germany. To date, the charge has generally been deferred until the shares are sold, if the transfer is within the EU, in a nod to the freedom of movement of capital doctrine.
“Under new proposals to implement the EU Anti-Tax Avoidance Directive (ATAD), the tax would become due immediately, albeit payable over seven years, even if the transfer is within the EU. The Directive is likely to cause other EU countries to look at this point as well.”
One Twitter user vocalises their frustration at the proposed changes, saying it has given them “one more reason to leave”:
Families Consider Emigrating
The prospect of increased taxation on businesses, should they wish to move in the future, will expedite the relocation of many businesses and business owners before this has the potential to affect them. The new rules will come into effect in January 2022, meaning the decision to move businesses (and potentially families) to avoid the impact of ATAD changes, is governed by an element of urgency.
These exit tax changes will chiefly affect High Net-Worth (HNW) and Ultra-High Net-Worth (UHNW) individuals, and those with global businesses and multiple international places of residence. This demographic is Tutors International's client base. Tutors International is an elite private tutoring company. They provide first-rate residential tuition to HNW families.
International Private Tutoring
In a time where many of these HNW families will be planning significant changes to where they live and work, the last thing parents and guardians want is disruptions caused by upheaval and relocation affecting their child’s education. Full-time international private tutoring is the solution. A high-quality private home tutor provides stability and first-rate education during these periods of change. Residential private tutors facilitate flexibility in their ability to teach their students. They are able to adapt to the environment and lifestyle of the family with which they are placed.
Tutors International Advise Potential Clients
Founder and CEO of Tutors International, Adam Caller, offers his advice:
“There will no doubt be many German business owners considering their options in light of tightening exit taxes. For many, it could mean moving their business and their families to an alternative international home. This should not mean disrupting the education of children, and with full-time international private tutoring, it doesn’t have to. Tutors International specialise in high-end custom residential tutoring. This means we find the best private home tutor in the world to suit your family. Depending on individual circumstances, they can live in or be full-time but in an off-site place of residence, and can travel wherever work or life takes you. It’s the ultimate stabiliser for children’s education.
“It’s important to acknowledge that this issue is not unique to Germany. Changes in tax laws around the world, the fallout from COVID-19, and ever-changing geopolitical landscapes all affect decisions about where business owners and their families reside. A private home tutor undergoes these changes and relocations with you.”