That's a really complicated topic, I would rather speak to a tax professional as there are really a lot of things you have to consider.
That being said it, I operate as a Einzelunternehmer and just launch my indie projects as "a Service by [me]", as I don't know if they will get traction or not. As a Einzelunternehmer in case of leaving Germany I would not be affected by the Wegzugsteuer, but by the Entstrickungsbesteuerung. As I have also done the business case of leaving Germany for myself I came to the conclusion I could leave Germany without paying (high) Entstrickungsbesteuerung because I don't have a fixed client base (with contracts etc.), which the Finanzamt could use as a basis. So I would have to close my business in Germany and then e.g. start as a solo freelancer in Portugal doing basically the same setup. But that only works in the setup of basically being mainly a freelancer (who launches indie projects under their own name) without a fixed client base from Germany.
But having a GmbH is a huge beast with the Wegzugsteuer. I have heard of people online trying to circumvent it by shutting down GmbH operations in Germany, then getting a "job' as an employee at a company in another country of someone they know and then after 6-12 months opening their own business in a new country. But I can say the Finanzamt is no joke when it comes to getting taxes back. Check the Podcast/Youtube by "Perspective Ausland" they have a lot around the topic of leaving Germany as an Entrepreneur.
Overall it might make sense to think about first leaving Germany (as in richtig Auswandern / steuerlichen Sitz aufgeben) as long as you don't have high business revenue streams and then starting things from abroad.
Im in exactly the same situation. Freelancer as Einzelunternehmer with a bunch of sideprojects. But they are actual for my useage only because of my bad design skills. But that is changing now and i will release them.
Tried to talk to my tax professional, but he wasn't really helpful. Most of them know how to fill the forms but nothing more.
He just said i should leave the country and found it directly there. But thats actually a bigger risk then starting here and moving when one product runs stable.
Maybe time to get a new tax consultant with specialization of digital business and saas.
With Entstrickungsbesteuerung it looks like there are more options to take it small. Talked with ai about it, and will try to ask a tax consultant about the options for that.
Yes i know people who get ruined by this. So GmbH is absolutely a red flag for me.
Regarding the tax consultant, yes it's a whole other topic/specialization. Your current one knows how to operate within the German tax system, but what you want it someone who know how to operate internationally. The keywords are "Steuergestaltung" or "Internationale Steueroptimierungen".
It's a bit of a chicken or egg problem, because if you want to leave as soon as one product 'is stable' you might actually get the problems, this really depends on your setup of the product and how much money you are making. Because the Finanzamt always tries to argue, that you built something based on your German 'brand', therefore they will tax you. So it's actually better to leave without having a super stable product, as they then have nothing or too little to tax that it becomes interesting.
I just recently watched this video from a fitness youtuber who had this problem of wanting to leave Germany, he operates GmbH's but it explains the thought process of the Finanzamt very good youtu.be/Ho86X-X2l4c.
I also have a friend who actually knows a Steuerprüfer at the Finanzamt who checks smaller businesses and Einzelunternehmen and they said as soon as you make around 100k - 150k€ Bruttoumsatz you are on the radar and if you have rising Umsätze for several years the system starts doing more checks and the likelyhood of them wanting to check you rises (this is regarding a Steuerprüfung, not leaving, but I assume once on the radar, always on the radar).
So, for myself I came to the conclusion as a Einzelunternehmer it's ideal to make well below 100k€ at the point of leaving Germany and ideally not having significantly/suddenly rising Umsätze several years in a row.
That's a really complicated topic, I would rather speak to a tax professional as there are really a lot of things you have to consider.
That being said it, I operate as a Einzelunternehmer and just launch my indie projects as "a Service by [me]", as I don't know if they will get traction or not. As a Einzelunternehmer in case of leaving Germany I would not be affected by the Wegzugsteuer, but by the Entstrickungsbesteuerung. As I have also done the business case of leaving Germany for myself I came to the conclusion I could leave Germany without paying (high) Entstrickungsbesteuerung because I don't have a fixed client base (with contracts etc.), which the Finanzamt could use as a basis. So I would have to close my business in Germany and then e.g. start as a solo freelancer in Portugal doing basically the same setup. But that only works in the setup of basically being mainly a freelancer (who launches indie projects under their own name) without a fixed client base from Germany.
But having a GmbH is a huge beast with the Wegzugsteuer. I have heard of people online trying to circumvent it by shutting down GmbH operations in Germany, then getting a "job' as an employee at a company in another country of someone they know and then after 6-12 months opening their own business in a new country. But I can say the Finanzamt is no joke when it comes to getting taxes back. Check the Podcast/Youtube by "Perspective Ausland" they have a lot around the topic of leaving Germany as an Entrepreneur.
Overall it might make sense to think about first leaving Germany (as in richtig Auswandern / steuerlichen Sitz aufgeben) as long as you don't have high business revenue streams and then starting things from abroad.
Im in exactly the same situation. Freelancer as Einzelunternehmer with a bunch of sideprojects. But they are actual for my useage only because of my bad design skills. But that is changing now and i will release them.
Tried to talk to my tax professional, but he wasn't really helpful. Most of them know how to fill the forms but nothing more.
He just said i should leave the country and found it directly there. But thats actually a bigger risk then starting here and moving when one product runs stable.
Maybe time to get a new tax consultant with specialization of digital business and saas.
With Entstrickungsbesteuerung it looks like there are more options to take it small. Talked with ai about it, and will try to ask a tax consultant about the options for that.
Yes i know people who get ruined by this. So GmbH is absolutely a red flag for me.
Thanks, i will check the mentioned podcasts. :)
Regarding the tax consultant, yes it's a whole other topic/specialization. Your current one knows how to operate within the German tax system, but what you want it someone who know how to operate internationally. The keywords are "Steuergestaltung" or "Internationale Steueroptimierungen".
It's a bit of a chicken or egg problem, because if you want to leave as soon as one product 'is stable' you might actually get the problems, this really depends on your setup of the product and how much money you are making. Because the Finanzamt always tries to argue, that you built something based on your German 'brand', therefore they will tax you. So it's actually better to leave without having a super stable product, as they then have nothing or too little to tax that it becomes interesting.
I just recently watched this video from a fitness youtuber who had this problem of wanting to leave Germany, he operates GmbH's but it explains the thought process of the Finanzamt very good
youtu.be/Ho86X-X2l4c.
I also have a friend who actually knows a Steuerprüfer at the Finanzamt who checks smaller businesses and Einzelunternehmen and they said as soon as you make around 100k - 150k€ Bruttoumsatz you are on the radar and if you have rising Umsätze for several years the system starts doing more checks and the likelyhood of them wanting to check you rises (this is regarding a Steuerprüfung, not leaving, but I assume once on the radar, always on the radar).
So, for myself I came to the conclusion as a Einzelunternehmer it's ideal to make well below 100k€ at the point of leaving Germany and ideally not having significantly/suddenly rising Umsätze several years in a row.