Glossary/Exit tax

Relocation glossary

Exit tax

Also known as: expatriation tax

A tax some countries levy on unrealized gains when you give up tax residency or renounce citizenship.

An exit tax treats your departure as if you sold your assets the day you leave, taxing the paper gains even though you haven't actually sold. The US imposes one on certain 'covered expatriates' who renounce citizenship or give up long-term residency; Canada, Australia, and several European countries have their own versions tied to ceasing residency.

Thresholds, asset types, and exemptions vary widely, and the tax can be significant for people with appreciated investments or business stakes. Planning the timing and structure of a departure can materially change the bill.

Why it matters for your move

If you're leaving a country for good — especially renouncing US citizenship — an exit tax can be the largest single cost of the move. It's the kind of thing to model with a professional well before you go.

Related terms

Non-resident alienTax residencyNaturalization

General information, not legal or tax advice. Rules change — verify current rules with official sources or a qualified professional before you act. Updated 2026-06.

Terms like this decide where you can actually go.

The free quiz turns the feasibility maze — visas, tax, residency — into a shortlist of places that actually fit you.

Take the quiz →

Or browse nomad visas by country · the full glossary