Gjermani: Ulje taksash për ekspertët e huaj?

2024-07-28 09:50:00, Kosova & Bota CNA

Gjermani: Ulje taksash për ekspertët e huaj?

Taxes in Germany a serious problem for workers. Photo: Matthias Balk/dpa/picture alliance

As part of its "growth initiative", the German government plans to introduce a provision under which professionals newly arrived in Germany can have 30, 20 and 10 percent of their gross salary tax-free for the first three years. A lower and upper limit for the gross salary will be determined for this benefit. After five years, it is planned to evaluate the effectiveness of this measure. In Germany, as a rule, a progressive income tax is applied at the rate of 14 percent to a maximum of 45 percent, depending on the income.

While the proponents of this measure for foreign workers wanted to make the German labor market as financially attractive as possible for qualified foreign workers, they are strongly opposed by union representatives. Unions fear a "double taxation system".

The Federal Minister of Economy, Robert Habeck, on the other hand, emphasizes that experts prefer to go to other countries, for example to Scandinavia, because of the better tax conditions and believes that "it is worth trying this measure and bringing people in Germany this way."

Federal Finance Minister Christian Lindner refers to similar rules that exist in many other European countries.

Gjermani: Ulje taksash për ekspertët e huaj?

Here's what it looks like in some of them.

Portugal

Southern European countries are especially trying to attract experts with tax incentives. The newspaper Süddeutsche Zeitung investigated this in the example of Portugal. There, high earners and freelancers who can work from anywhere in the world will be lured by a flat income tax rate of 20 percent valid for ten years. Normally, in this country employees pay a progressive tax of 14.5 to 48 percent.

The condition for the application of the 20 percent rate is that the workers spend more than half of the year in Portugal and work there. This rule does not apply to pensions, capital gains or dividends. This caused resentment in EU countries with high capital taxes, as wealthy pensioners began to move to Portugal.

This is just one of dozens of reform measures that Portugal wants to boost its economy. Thus, for example, the profit tax rate is intended to gradually decrease from 21 to 15 percent.

According to data from the Reuters agency, a total of 74,000 people have used the preferential tax rate in 2022. The 20 percent rule has existed in a modified form since 2009 and was intended as one of many measures to increase the country's productivity under the influence of the financial crisis.

Spain

Gjermani: Ulje taksash për ekspertët e huaj?

In neighboring Spain, there is also a reduced tax rate for foreign workers. This "tax rate for foreigners" is higher than in Portugal. Here the rule applies, according to which professionals can expect a tax rate of around 24 percent.

Ital

The rules in Italy are very complicated and depend on many details: how long you have been in the country, how much you earn, the number of children and the age of the children in the family. According to the Itaxa blog (an online service that advertises "international tax rules in simple words"), up to 90 percent of income can be tax-free - but only under optimal conditions and therefore rarely.

Sweden

Northern European countries also give tax breaks. A study by the Leibniz Information Center for Economics rated these tax breaks as effective, but also warned of negative effects for countries of origin, as they could trigger a brain drain.

In Sweden, 25 percent of income is exempt from taxes. According to consulting firm Ernst & Young, the country even increased tax incentives in 2024. Qualified non-Swedish employees with incomes of around 10,000 euros a month now have to tax only 75 percent of their income for seven years instead of five. it has been until now.

Denmark

In Denmark, especially qualified experts, for example scientists, pay only 27 percent of income tax for seven years - plus social contributions. Other employees with a monthly salary of around €10,000 only pay a tax rate of 32.84 percent - even though the highest tax rate in Denmark is actually 53 percent.

Netherlands

Even in the Netherlands, in-demand experts can significantly save taxes. It applies the "30 percent rule" (meaning that almost a third of income is tax-free), which is attractive, but also controversial and constantly changing.

The rule is a way to achieve "tax fairness", as there are many options for individual tax returns with many opportunities for tax deductions.

The complex rules show that this is not a massive tax break - nor a deliberate "generosity" to fill gaps with immigrants. The rule aims to transfer the system of tax-free benefits for a certain period to foreigners in the Netherlands in order to facilitate their adaptation. This is the most important difference compared to the discussion taking place in Germany./ DW