Germany has no expat tax break: what that costs you

By Skyler Bissell · July 23, 2026 · 7 min read

Most of the searching people do before a move to Germany is for a tax break that does not exist. There is no German 30% ruling. No Beckham Law, no impatriati regime, no researcher scheme. You arrive, you pay what your German colleague pays, and the German tax office has no category for the fact that you got here in March.

That absence has a price, and it is measurable. On €90,000, a Berlin single filer keeps €53,229 by cityparity's engine. The identical salary in Amsterdam under the Dutch 30% ruling keeps €72,580. Same euros on the offer letter, €19,350 a year of difference, and the entire gap is a regime one country wrote into law and the other did not.

What Germany offers instead of a regime

Nothing. That is the whole answer, and it is worth stating plainly because so much of the internet implies otherwise.

Nine European countries in our engine give an arriving professional real relief on a locally earned salary. Germany is not one of them. There is no reduced rate, no exempt fraction, no tax-free allowance keyed to your arrival date. The Blue Card makes it straightforward to get to Germany; it does nothing to your tax bill once you are there.

What Germany does have are ordinary deductions available to anyone, which happen to be useful in a moving year: relocation costs (Umzugskosten) are deductible when the move is work-related, and a second household maintained for work (doppelte Haushaltsführung) can be claimed while your family is still elsewhere. Married couples get Ehegattensplitting, which our engine models and which can be worth a great deal when one partner earns much more than the other. None of these are expat regimes. They are the normal German tax code, and your German colleague claims them too.

What the gap is worth, against the neighbours

The same €90,000 gross, single filer, income tax plus the employee share of social contributions, engine-computed in each city. Every comparison country here has a regime a new arrival can actually claim.

Figures rounded, tax and social contributions only, before living costs. These are tax comparisons at a fixed gross salary, so they say nothing about whether €90,000 is an equally reachable number in each city, or about what rent does to the result afterward. Amsterdam undoes a good deal of its own advantage on housing.

Read the table for what it is. The regimes are temporary, running four to ten years depending on the country, while Germany's ordinary tax is permanent in both directions. A five-year Amsterdam stay under the ruling banks roughly €97,000 more than the same five years in Berlin. Stay fifteen years and the picture narrows sharply, because the Dutch ruling expires in year five and the Dutch ordinary rate is no kinder than Germany's.

What the rate does between €60,000 and €150,000

The German rate climbs hardest through the middle of the range and then goes nearly flat. From €60,000 to €90,000 it gains 3.4 points. From €120,000 to €150,000 it gains a quarter of one:

The cause is the contribution ceilings. German social insurance runs at a combined employee share of about 21.15%, but it stops at two different ceilings: health and long-term care cut out at €69,750 of gross, while pension and unemployment continue to €101,400. Below those lines you pay the full weight. Above them another euro costs you income tax and the solidarity surcharge alone, which is why the curve flattens once you clear €100,000 rather than steepening toward the 45% top marginal rate.

The solidarity surcharge explains the one sharp step. It is zero at €90,000 and first bites just past €100,000, which is why that stretch is the most expensive €10,000 in the whole range: you keep about €3,851 of it, roughly 38 cents on the euro. Clear €100,000 and the next €50,000 arrives at about 55 cents on the euro, because social insurance has stopped counting by then.

The practical read for anyone negotiating: the band between €90,000 and €100,000 is the one worth jumping rather than landing in. A lot of arriving senior engineers and mid-career professionals get offers that stop right inside it.

The rebate that never happened

In 2024 a German growth package floated a tax rebate for newly arrived skilled workers, a declining discount on part of their salary across their first three years. It was framed as a fix for a labour shortage, and it collapsed under an obvious objection: two people doing the same job at the same desk would have paid different tax on the basis of where they were born. The proposal did not become law.

It still shows up in relocation guides written in 2024 as though it were live. It never was. If you are reading anything that describes a German expat tax discount, check whether it is describing this bill, and check the date.

What you are buying

Here is the part the tax comparison cannot see, and it is the reason a lot of people take the Berlin offer anyway.

Berlin's public Kita has been free since 2018, at every income level, with no means test. A family with two children in full-day care pays roughly €0 in Berlin against about $32,280 a year in Seattle. On top of that, Kindergeld pays €259 a month per child in cash, at any income, and most arriving skilled workers qualify. Statutory health insurance covers a non-earning spouse and your children at no extra premium at all, because the contribution is a percentage of your own salary and children do not add to it. Statutory leave is 20 vacation days plus 10 public holidays, and parental leave runs to about 67 weeks at roughly 40% of pay at this salary.

None of that shows up in an effective tax rate, and all of it is bought with the same money the tax rate is measuring. Germany is expensive on the payslip and cheap on the things a family actually spends money on. Whether that is a good deal is not a question about tax law, it is a question about your household. A single person on €90,000 in Berlin is straightforwardly worse off than the same person in Amsterdam under the ruling. A couple with two young children can come out the other way once daycare and health coverage are counted.

That is the trade the whole site exists to price. Seattle against Berlin for a family runs it end to end.

Run your own numbers

• Run your salary in the calculator → (Berlin, Munich, Hamburg and Frankfurt all run the ordinary German scale)
• Expat tax breaks, decoded: every European regime and whether it is worth moving for
• Every regime ranked by take-home on $150k: where Germany places against the countries that do offer one
• The UK's FIG regime: the other big European economy whose headline regime does nothing for a local salary
• The Dutch 30% ruling, explained: the regime this page keeps measuring against
• Germany money hub: taxes, childcare, healthcare and leave across our German cities
• Church tax in Germany: the one payslip line registered members can switch off, and the office visit that does it
• Is €100k a good salary in Germany?: one salary walked through the payslip, priced in seven German cities and in US and UK equivalents

FAQ

Does Germany have a tax break for foreign workers?

No. Germany has no inbound expat tax regime. There is no German equivalent of the Dutch 30% ruling, Spain's Beckham Law, Italy's impatriati regime or Denmark's researcher scheme. A newly arrived foreign professional pays the same income tax, solidarity surcharge and social contributions as a German colleague who has lived there their whole life.

What does having no expat regime cost you?

By cityparity's engine, a single filer on €90,000 keeps €53,229 in Berlin. The same €90,000 under the Dutch 30% ruling in Amsterdam keeps €72,580, and under Italy's impatriati regime in Milan €69,753. That is €19,350 and €16,523 more a year on identical gross pay.

What is Germany's effective tax rate on a professional salary?

By cityparity's Berlin engine, a single filer pays 37.4% on €60,000, 40.9% on €90,000, 43.2% on €120,000 and 43.4% on €150,000, counting income tax, solidarity surcharge and the employee share of social insurance. The rate climbs the whole way up and then flattens near 43%, because the health and pension contribution ceilings stop the social-insurance half of the meter while income tax keeps going.

Did Germany ever propose an expat tax rebate?

Yes, and it was never enacted. A 2024 growth-package proposal would have given newly arrived skilled workers a declining rebate on part of their salary across three years. It drew immediate criticism for taxing foreign and domestic workers differently for the same work, and it did not become law. Germany's position in 2026 is unchanged.

Is Germany still worth moving to without a tax break?

It depends on what you are counting. Germany charges more tax and returns more of it as services. Berlin's public Kita has been free at every income level since 2018, statutory health insurance covers your spouse and children at no additional premium, and statutory leave runs to 20 vacation days plus 10 public holidays with up to 67 weeks of parental leave. For a family those lines can outweigh a four-year tax discount somewhere else.

Which European countries do have expat tax regimes?

Nine countries in cityparity's engine offer genuine relief on a locally earned salary: the Netherlands, Spain, Italy, Denmark, Sweden, Belgium, Greece, Portugal and Poland, though Poland's route runs through self-employed contracting rather than a payroll regime. Four more are honest dead ends for salary: Germany has nothing, the UK's FIG regime relieves only foreign income, Norway's PAYE scheme suits short stays, and Ireland's SARP is narrow enough that we model it as a footnote.

Sources. German income-tax rules come from Germany's Bundeszentralamt für Steuern, and the Dutch 30% ruling comparison from the Dutch Belastingdienst. Take-home is computed by cityparity's per-city engine; see take-home pay by country.

Take-home figures come from cityparity's per-city engine (single filer, income tax plus the employee share of social contributions, before living costs) using 2026 rates, and are rounded. Comparison cities apply their own regimes as modeled on their city pages. German deductions such as Umzugskosten and doppelte Haushaltsführung depend on your circumstances and are not modeled here, so confirm your own position with an adviser who does German returns. General information, not tax advice. See the methodology.