Sale of shares in domestic corporations
Sale of shares in domestic corporations: As a general rule, gains
realized by a non-resident shareholder from the sale of shares
in a corporation that has its registered offce or place of man-
agement in Germany are not subject to tax liability in Germany.
However, if during the past fve years the non-resident share-
holder has had a direct or indirect holding of at least one percent
in such corporation, the gain on sale is subject to non-resident
tax liability, regardless of whether the shares are held as a
foreign private asset or as part of foreign business property.
In most cases, the German double tax treaties allocate the right to
tax gains on the sale of shares in domestic corporations to the
taxpayer’s country of residence, i.e. The German domestic right
of taxation has no effect.
EU Forecast
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