2024 looks set to be a significant period for Germany, marked by a series of substantial changes. Here’s a comprehensive overview of what lies ahead for the country in the near future.
Tax Policy and Benefits
Germany anticipates significant changes in its tax policies and benefits in 2024. The income threshold exempt from taxation is expected to increase by nearly 700 euros, while the child tax credit will see an increase of over 350 euros. Additionally, fewer taxpayers will be subject to the “solidarity tax” as the exemption threshold is set to rise by almost 600 euros. The total amount of Elterngeld payments, received by parents during parental leave, is slated to decrease to 200,000 euros in 2024, with a further reduction to 175,000 euros the following year. Furthermore, by early 2024, restrictions on electricity prices are expected to be lifted.
Real Estate Market Challenges
The German real estate market faces challenges in 2024, with projected increases in rental prices and a shortage of properties for purchase. Analysts suggest that market recovery may not occur until the fourth quarter of the year.
Dual Citizenship for Non-EU Citizens
After lengthy discussions, a new citizenship law allowing dual citizenship for citizens of non-EU countries upon naturalization as German citizens is expected to be enacted in 2024.
Significant Legislative Changes
Revised plans for the legalization of recreational cannabis, initially slated for discussion in the Bundestag in 2023, have been delayed, raising uncertainty about their enactment in 2024. However, proposed changes include permitting possession of up to 25 grams of cannabis for recreational use and cultivation of up to three plants. Immigration legislation will also undergo revisions, allowing qualified workers from non-EU countries to seek employment in Germany through a “opportunity card” introduced in 2023.
EURO 2024
Germany is set to host the UEFA European Championship in 2024, with matches scheduled from June 14 to July 14. Matches will take place across various cities nationwide.
VAT Increase in Cafés and Restaurants
The German government plans to raise VAT in cafés and restaurants from 7% to 19%, potentially impacting food prices in these establishments.
New Train and Flight Routes
New train and flight routes between Germany and neighboring countries are expected in 2024, including overnight trains in some cases.
In the coming year of 2024, Germany anticipates a pivotal phase, poised for a multitude of noteworthy transformations. This comprehensive overview covers just some of the imminent changes that are set to shape the country’s landscape in the foreseeable future.
