Luxtoday

Germany to introduce tax breaks

Last time updated
02.04.24
Source: Meduana on Unsplash

Source: Meduana on Unsplash

The innovation was announced by Finance Minister Christian Lindner. According to the politician, Germany is currently not attractive enough for foreign specialists. One of the measures to solve this problem will be to reduce the tax burden for the first few years of work in the country.

This reform will be part of the Immigration Act, which has already partially entered into force. It now allows foreign professionals to legally seek and obtain employment in Germany, to bring their families to Germany and to obtain qualifications in Germany. The law has also made it possible for students to work part-time during their studies, which should also motivate them to come to Germany for their education and thus to develop suitable personnel within Germany.

Germany is not the first country to take such measures. The Netherlands already has a similar practice. Here, foreign specialists are reimbursed 30 per cent of the taxes paid during the first 20 months of employment. Then the rate is gradually reduced.

The German government, for its part, is also not being generous with such changes. There is already an acute shortage of personnel in the country, which will only grow due to the aging of the population. It is expected that by 2035 the German economy will be short of 7 million qualified specialists.

This could be a serious threat to the well-being of the country, so active action is needed now.