Germany is contemplating a tax relief initiative aimed at attracting skilled foreign professionals to the country.
Under the proposed plan, new foreign workers could receive tax rebates of 30%, 20%, or 10% during their first three years of employment in Germany.
This measure is part of Germany’s “growth initiative” to address shortages in various sectors by offering partial tax exemptions to newly arrived qualified workers.
Federal Minister of Finance Christian Lindner announced that the tax rebates will apply exclusively during the initial three years of employment. However, he did not specify the exact criteria for receiving the higher or lower rebate percentages.
Lindner stated, “We are introducing tax rebates for foreign professionals in their first three years in Germany. The rebates will be 30%, 20%, and 10% for those who come here as qualified specialists. This proposal is pending approval and will be reviewed after five years.”
While the proposed tax breaks have been welcomed by foreign workers, the plan has faced criticism from various quarters. Opposition politicians and trade unions argue that the policy could disadvantage domestic workers.
Green Party lawmaker Beate Müller-Gemmeke voiced concerns that the tax breaks might discriminate against German nationals and those who have previously moved to Germany for work. “This move could be seen as discriminatory against nationals,” she said. “Everyone should be treated equally, and offering tax exemptions solely to foreign workers may undermine that principle.”
Federal Minister of Labour Hubertus Heil also criticized the proposal, suggesting that Germany should focus on reducing bureaucratic obstacles and expediting visa processes instead of implementing tax breaks.
Recent data from the German Economic Institute highlights a current shortage of approximately 573,000 skilled workers in Germany. If the tax relief plan is enacted, it could enhance Germany’s appeal as a destination for skilled foreign professionals.
