How a State Can Stop You From Leaving: 6 Exit-Control Mechanisms

Starting on January 1, 2026, Germany introduced a rule requiring men aged 17–45 to obtain clearance from the Bundeswehr Career Center before leaving the country for more than three months.

Important: this approach was not created from scratch. In West Germany, a similar system existed as early as 1965 under the conscription law, was used only sporadically for decades, and was then activated in peacetime through a revised military service framework. There was essentially no public debate—most affected men didn’t even know the rule existed.

When the requirement became widely noticeable in April 2026, authorities backed off: the same month they issued a general exemption notice, and by mid-2026 applications and any sanctions were no longer required. Still, the provision remains in the law and could be switched back on later.

Germany is a G7 country and one of the most passport-powerful in the world. So the fact that such a rule appeared—and then went into “pause”—highlights the core point: to control departures, a state only needs a toolbox and the ability to activate those tools at its discretion.

Below are 6 main ways a government can keep you, your money—or both—inside the country. These mechanisms usually don’t “attach” to you as a person; instead, they attach to your citizenship, tax status, or assets located within the jurisdiction.

This concentration is the biggest risk. The more your legal and financial life is tied to a single country, the more likely it is that when control measures are activated, you’ll fall under their reach. Spreading statuses and assets across different jurisdictions reduces the risk of a single “point of failure,” but with one caveat: a second passport rarely fully cancels obligations connected to the first.

1. Exit Bans

An exit ban is the most direct tool on the list. In practice, the state effectively orders a specific person not to leave the country—and often holds onto the passport while the matter is being considered.

The grounds can be more than a criminal case. Exit bans are applied due to debts, tax disputes, ongoing investigations, commercial litigation, and in some countries they are also used as leverage over relatives of the person the state wants to keep.

In recent years, China has significantly expanded the use of exit bans. According to human-rights organizations, such measures were used not only against foreign executives in business disputes, but also against Chinese citizens connected to investigations—sometimes with the intention of applying pressure through family members abroad.

Russia also restricts departure for citizens with certain debts, for those with clearances related to secrecy regimes, and when people fall under mobilization requirements. Similar powers exist in some form in many other countries as well.

Key point: an exit ban is tied to your actual presence in the country and your status there (citizen, resident, party to a dispute). Having a second passport doesn’t help by itself if you are still under a ban in the “banning” jurisdiction.

But a second passport and pre-built alternatives matter on the other side: if your life is legally supported by multiple countries, you’re far less likely to be physically located in the high-risk jurisdiction when the ban is activated. And if the ban is lifted, you’ll have “somewhere to return.”

2. Capital Controls

Capital controls limit how much money you can transfer out of a country—or freeze funds entirely. Your body may be free to move, but your capital may not.

These measures are often introduced quickly: authorities announce them on weekends when banks are closed, leaving people without a “window” to react.

One of the most telling examples is Cyprus during the 2013 crisis. Banks were closed, withdrawal and transfer limits were imposed, and those restrictions lasted for about two years. Some deposits above the €100,000 threshold without deposit insurance were converted into bank capital—leading to significant losses for large depositors at Bank of Cyprus.

For years, Argentina has practiced foreign-exchange controls, effectively rationing access to dollars. At the same time, renouncing citizenship isn’t an option there—meaning the risk of restrictions returning remains constant.

Similar problems have occurred in Nigeria and Egypt due to foreign-currency shortages: through official channels, transfers at an “official exchange rate” become extremely difficult.

China limits individual purchases of foreign currency to up to $50,000 per year. As a result, buyers often use workaround schemes that regulators later shut down.

In most cases, controls attach to assets located inside the country and to accounts held in its currency. Money already placed in another jurisdiction, another currency, and ideally another geopolitical bloc is usually out of reach of a specific state.

3. Exit Taxes

An exit tax is a payment that can arise not because you sold assets, but because you leave the tax system. The state essentially treats it as if you sold your worldwide assets one day before you stopped being a tax resident—and taxes the “paper” gain.

Such regimes are most often tied to tax residency. Similar approaches are used by Canada, Australia, Norway, Japan, France, and Germany (in different forms) when residency status ends.

The thresholds vary. In Japan, the regime may start with aggregate assets from 100 million yen. In France, it can apply to stock stakes/packs worth €800,000 or more or to a stake of at least 50% in a company. In Germany, Wegzugsteuer is aimed at holders of corporate capital starting around 1%.

The United States is a notable exception: there, the obligation is tied not to residency, but to citizenship. An American doesn’t stop tax obligations just by moving—because the U.S. tax system continues taxing worldwide income. The exit happens through renouncing citizenship, which triggers the exit tax.

In the U.S., the exit tax applies to “covered expatriates.” Eligibility is reached by meeting one of several criteria: a large net worth, a high average tax liability over prior years, or an inability to certify proper tax compliance for a certain period. For 2026, there are exceptions for certain unrealized gains, and the remainder may be taxed at capital-gains rates.

The practical takeaway is simple: an exit tax attaches to what you’re losing—tax residency or citizenship. If wealth and tax status are concentrated in one country with high tax risk, the bill can arrive in full. A second passport after the fact rarely fixes the problem; usually, it’s better to structure and time things before gains accumulate.

4. Conscription

Conscription is mandatory military service, and in some countries it comes with departure restrictions: men of draft age simply can’t leave until they meet the requirements.

Dozens of countries use conscription. Estimates vary, but roughly 60 to 85 states use conscription or elements of it—and the number of such countries periodically increases. For example, Latvia brought conscription back in 2024, Croatia follows from 2026, and Germany adopted a new framework in December 2025.

The harshest case on today’s agenda is Ukraine. During martial law, men aged 18–60 usually can’t leave; exceptions exist, and crossing the border typically requires a military registration document. From August 28, 2025, free departure was allowed for men aged 18–22, but age limits for older groups remain.

South Korea may even draft people with a second citizenship: sometimes they are identified during visits. A known case is entertainer Yoo Seung-jun, who in January 2002 took U.S. citizenship ahead of a planned draft—after which South Korea prevented his return for many years. He continues to challenge the issue.

Similar approaches, with different conditions, have been reported in Israel, Greece, Turkey, and Russia—they may claim service obligations for citizens abroad.

In Germany, the new model goes beyond conscription itself. In addition to the register of those subject to draft, a “sleeping” provision was activated: men aged 17–45 were required to request permission before leaving for more than three months.

In April 2026, the defense authority exempted everyone from that requirement, but the provision remains in the law—meaning border control could be switched back on.

In this scenario, a second passport helps the least. Conscription is tied to the first citizenship, and obtaining a new status rarely “cancels” the obligation tied to the old one. Sometimes the only clean exit is renouncing citizenship, but some countries make that difficult or link it to completing service.

5. Tax Clearance Certificates

A tax clearance certificate is not a “tax as such” and not a “transfer limit.” Here, the state requires positive confirmation: a document proving your tax affairs are in order is needed before you (or your money) can leave.

The clearest active example is South Africa. There, the “financial emigration” process through the Reserve Bank was abolished in March 2021 and embedded into the procedure handled by the South African Revenue Service (SARS).

South Africans can export up to 1 million rand per year without certificates. In 2026, that limit was increased to 2 million. For larger amounts, proof of “Tax Compliance Status” and authorization for an international transfer are required. If the amount exceeds the overall cap, additional approvals and compliance letters may also be needed.

It’s also important to note that ending tax residency can trigger a capital-gains tax on exit as well.

The logic is straightforward: to move capital abroad, you often need a documented “blessing” from the tax authority.

In the U.S., there is a “sleeping” equivalent. The tax code provides for the need for a compliance certificate (in some cases) for departing residents and certain non-residents—through filings known as a “sailing permit,” which confirm that U.S. tax obligations have been settled.

The rule is old, typically not applied at scale, and many people who formally fall under it don’t know it exists. Still, it hasn’t been repealed—so the state can activate it if needed.

Certificate requirements are tied to your position as a taxpayer in a specific jurisdiction. A second place of residence doesn’t remove the first country’s obligations, but it helps because your financial life won’t depend entirely on a single tax authority.

6. Passport Revocation for Unpaid Tax

The last tool isn’t to restrict movement—it’s to take away the document that allows you to travel. A passport is state property, and a growing amount of unpaid debt can remove the right to hold one.

In the U.S., this is directly linked to taxes. The 2015 law (FAST Act) allows the IRS to certify a “substantially delinquent” tax debt to the Department of State, which may refuse to issue a passport, refuse to renew one, or revoke an already issued document. If the person is abroad, there can be a limited configuration of the document—such as only a trip back home.

For 2026, “substantially delinquent” means more than $66,000 in unpaid federal taxes (including penalties and interest), where certain filings or enforcement actions exist, such as liens or levies. The threshold is adjusted annually for inflation.

The mechanism extends beyond taxes. In 2026, the Department of State began revoking passports of parents with large child-support arrears: it started at $100,000 and then expanded to a $2,500 program threshold. Since 1998, similar debt-collection efforts have generated hundreds of millions of dollars for the government.

Revocation is tied to the passport, and the passport is tied to citizenship. For someone with only one U.S. passport, revocation can effectively “lock” a person inside the country with little warning.

For dual citizens, it’s usually more like an inconvenience: the second document allows continued travel while the debt is resolved. That’s why one passport is one risk, while multiple documents and distributed status reduce vulnerability.

What all these mechanisms have in common

If you go through the six items, a common pattern emerges. An exit ban requires your physical presence in the country. Capital controls hit the money you leave behind. An exit tax arises when you stop having the relevant tax status. Conscription is tied to the citizenship you were born with. Certificates require clearance from a specific tax authority. And passport revocation is a direct intrusion by the state into your travel document.

The most painful situation occurs when citizenship, bank accounts, and assets are concentrated in one place. That is the common denominator—concentration. And in real life, this concentration is exactly what can be changed.

At the same time, you shouldn’t treat these tools as “normal practice for everyone.” Most people will never face an exit ban, account freezes, or passport revocation. And among those who do move, the most common outcome is usually at most an exit tax.

But the idea that a second passport is a universal shield also doesn’t hold. It almost never cancels conscription tied to the first citizenship, and it doesn’t remove the U.S. exit tax if the obligation is tied to citizenship. Funds frozen in a country with capital controls will remain frozen regardless of how many other documents you hold.

What a second passport, a second tax residency, and distributed assets truly provide is reducing a single point of failure: a backup document if revocation happens; an account in another banking zone if funds are frozen; a tax status that answers to not one but multiple regulators; and a place you can enter without needing someone’s permission.

This is the logic that the investment migration market has long used as an argument: a second status is insurance in case a state makes departure conditional. And the value of that insurance grows as governments add new levers of control.

Most people plan a move by looking at the destination country. A more useful step is to look back at the country you’re leaving: what control levers remain after you depart, and how willing you are to concentrate those levers in the hands of one jurisdiction.

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