Exit Declaration

An exit declaration is an administrative procedure for individuals who are leaving a country where they were tax residents. It informs the tax authorities of the change of residency and helps avoid double taxation or unwanted tax obligations after departure. Mandatory in some countries like Brazil, the exit declaration is highly recommended to avoid tax residency conflicts.

In practice, this declaration often involves:

• Closing local tax obligations, such as income tax, CSG/CRDS (in France), or any potential taxes on wealth.
• Application of specific taxation, such as an exit tax in certain countries, which aims to tax latent capital gains before departure.
• Updating tax residency to prevent a country from still considering you a tax resident after your departure.

It is essential to ensure a smooth and secure tax transition, particularly to avoid any future disputes with tax authorities regarding your non-resident status.