skill shortage - Minister Meyer against tax bonus for foreign expertise
At the federal level, planned tax reliefs for foreign specialists are facing criticism from Mecklenburg-Vorpommern Economy Minister Reinhard Meyer. "We need more well-trained specialists, even from abroad. A tax bonus for foreign specialists will not make a significant contribution to closing the specialist gap," the SPD politician said in response to an inquiry from the German Press Agency.
When making a professional future decision in Germany, other parameters are more important than a possible temporary tax relief, emphasized the minister. "It would be much more effective, for example, to digitalize and significantly speed up visa procedures. The tax bonus for foreign specialists discussed does not solve the problem, creates new loopholes in the tax system, and plays into the hands of those trying to divide our society," said Meyer.
The planned tax bonus is part of the Growth Initiative, which the coalition leaders recently decided on in connection with the compromise on the federal budget 2025. The goal of the measures contained in it is to revive the stagnating German economy.
In the paper, it says: "To make Germany more attractive for foreign specialists, the federal government will also introduce tax incentives for employment in Germany. Newly recruited specialists can make up to 30, 20, and 10 percent of their gross salary tax-free in the first three years." For this tax exemption, lower and upper limits for the gross salary should be defined. In the Netherlands, a similar regulation has been in effect since the beginning of the year.
- Reinhard Meyer, the Economy Minister of Mecklenburg-Vorpommern, expressed his critique towards the planned tax reliefs for foreign specialists at the federal level.
- The SPD politician argued that a tax bonus for foreign specialists would not significantly contribute to addressing the specialist gap in Germany.
- Meyer suggested that digitalizing and speeding up visa procedures would be more effective in attracting foreign specialists to Germany.
- The planned tax bonus is part of the Growth Initiative, a set of measures aimed at reviving the stagnating German economy, as decided by the coalition leaders.
- The German Press Agency received a response from Meyer regarding tax incentives for foreign specialists, which are also part of the Growth Initiative.
- The Federal Government is planning to introduce tax incentives for employment in Germany to make the country more attractive for foreign specialists.
- To qualify for the tax exemption, lower and upper limits for the gross salary should be defined, as stated in the paper outlining the measures.
- A similar regulation has been in effect in the Netherlands since the beginning of the year, providing tax exemptions for newly recruited specialists.
