Would You Move to Germany for a Tax Break?

Partial income tax rebate proposed for skilled immigrants

Photo by Metin Ozer on Unsplash

A proposal from German Federal Finance Minister Christian Lindner would allow foreign workers with in-demand skills to get an initial rebate of 30 percent of their income tax if they immigrate to Germany.

Under the plan, the rebate would be gradually reduced over three years (a 20 percent rebate the second year, 10 percent the third) until the worker was on par with the rest of the workforce.

Arguing in favor of the measure, Economy Minister Robert Habeck noted that several other EU countries - including Belgium, Denmark, Finland, France, Ireland, Italy, Luxembourg, Malta, the Netherlands, Austria, Portugal, Sweden, Spain, the UK and Cyprus - already offer similar incentives.

“It’s worth a try, and in the end it’s also good for German companies," Habeck said at a news conference discussing the upcoming 2025 budget proposals.

According to the German Economic Institute, the country currently has a shortage of 573,000 skilled workers, due largely to an aging wo…