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.[1][2][3]
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 $950,000 in 2023).
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"[4]: 12 to seize the assets of Jewish refugees who were persecuted and driven to flee their homeland.
The situation differed in the case of Jews who, under the pressures of persecution, decided to emigrate. A special levy of 25 percent was then placed on their entire domestic assets, the so-called Reich Flight Tax [Document A02]. In addition, when assets were transferred, further fees were charged based on particularly unfavourable exchange rates. Through this transfer, emigrants in 1938 on average lost more than 90 percent of their assets. Many refugees were ultimately reduced to leaving the country only with what baggage they could carry and 10 ℛ︁ℳ︁ in their pocket.