Germany Planning to Reduce Taxes for New International Skilled Workers

Germany is planning a significant tax reduction to attract more skilled foreign professionals to the country.

As part of the “growth initiative,” the German government intends to partially exempt newly arrived foreign skilled workers from taxes for their first three years of employment.

Authorities believe this tax relief is essential due to labor shortages in various sectors nationwide.

The Federal Minister of Finance, Christian Lindner, shared information about Germany’s efforts to increase the immigration of foreign workers. He mentioned that the tax rebate is specifically designed for newly arrived-professionals.

Minister Lindner highlighted that the rebate would apply only during the first three years of employment if the measure is approved and enacted.

He further explained that the tax rebates would range from 30% to 20% to 10%. However, he did not provide additional details about the criteria for eligibility for larger or smaller tax reliefs.

German Finance Minister Christian Lindner’s Views

We are introducing a tax rebate for foreign professionals during their initial three years in Germany. The rebates will be 30%, 20%, and 10% for qualified specialists who relocate here.

This measure requires approval before it takes effect. Authorities plan to review the policy after five years.

Tax Rebate Plan for Foreign Workers Faces Political and Union Opposition

While foreign workers have welcomed Germany’s proposed tax rebate, opposition politicians and trade unionists have expressed strong criticism.

According to Deutsche Welle, opposition figures and union representatives argue that the measure discriminates against domestic workers.

Even some members of the governing parties have voiced concerns. Green Party lawmaker Beate Müller-Gemmeke told Deutsche Welle that Germany upholds the principle of equal treatment, and everyone should be treated equally.

She further stated that the policy would be discriminatory against both nationals and those who have previously come to Germany for work.

Green Party lawmaker Beate Müller-Gemmeke Reviews

From my perspective, it would be somewhat discriminatory against nationals to exempt foreign workers from paying tax on a portion of their salary.

Labour Minister Calls for Faster Visas, Not Tax Cuts

Federal Minister of Labour Hubertus Heil has voiced his criticism of the proposal. He argued that instead of offering tax rebates, Germany should focus on removing bureaucratic hurdles and speeding up the visa issuance process.

Recent data from the German Economic Institute indicates that Germany currently faces a shortage of approximately 573,000 skilled workers.

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