Tax Incentives for Attracting Foreign Skilled Workers

The German government is considering tax incentives to attract skilled workers from abroad. The plan is to exempt newly immigrated skilled workers from taxes on a percentage of their gross salary in the first three years.

Other EU countries, such as Portugal, Spain, and Sweden, also offer tax breaks to attract foreign talent. However, these incentives are met with opposition from trade unions who fear a two-class tax system.

Employers argue that other factors, such as simplified migration processes and faster recognition of foreign degrees, are more important. Economists question the effectiveness of tax incentives, citing high costs and doubts about their ability to address the shortage of skilled workers in Germany.

The debate revolves around issues of equality, Germany's attractiveness as a destination, and the practical implementation of the tax incentives. It remains to be seen whether the German government will proceed with the tax incentives, as they seek to address the concerns of employers and ensure active utilization of the program.