Reich Flight Tax

The Reich Flight Tax (German: Reichsfluchtsteuer) was a German capital control law implemented in 1931 to stem capital flight from the German Reich. After seizing power, the Nazis used the law to prevent emigrants from moving money out of the country.

The law was created through decree on 8 December 1931 by Reichspräsident Paul von Hindenburg. The Reich Flight Tax was assessed upon departure from the individual's German domicile, provided that the individual had assets exceeding 200,000 ℛ︁ℳ︁ or had a yearly income over 20,000 ℛ︁ℳ︁. The tax rate was initially set at 25 percent. In 1931, the Reichsmark was fixed at an exchange rate of 4.20 ℛ︁ℳ︁ per dollar, making 200,000 ℛ︁ℳ︁ equal to US$47,600 (equivalent to $920,000 in 2022).

In Nazi Germany, the use of the Reich Flight Tax shifted away from dissuading wealthy citizens from moving overseas and was instead used as a form of "legalized theft" to confiscate Jewish assets. The departure of Jewish citizens was desired and permitted by the Nazi government – even after the Invasion of Poland – until a decree from Heinrich Himmler forbade Jewish emigration on 23 October 1941. The tax was steadily increased and used as a "partial expropriation"^: 12 to seize the assets of Jewish refugees who were persecuted and driven to flee their homeland.