GlossaryAdvanced
Exit Tax
A tax some jurisdictions impose on unrealized gains when a person ceases to be a tax resident, treating the departure itself as a deemed disposal.
An exit tax is a tax some jurisdictions impose specifically when a person ceases to be a tax resident of that jurisdiction, treating the departure as a "deemed disposal" of some or all of their assets (potentially including crypto holdings) at that moment, even though nothing was actually sold.
Not every jurisdiction applies an exit tax, and the specific assets covered and thresholds involved vary significantly where one does apply — check the relevant country-specific guide in Kaavon's crypto tax section for whether and how this applies in a given jurisdiction before relocating.
Examples
- An exit tax can create a real tax bill on unrealized crypto gains at the moment someone ceases to be a tax resident, even without an actual sale taking place.
- Exit tax rules, where they exist, are a genuinely important consideration to research in advance for anyone planning to relocate with substantial unrealized crypto gains.