As 2026 begins, a wide range of legal changes are coming into effect in Germany, from immigration and work rules to taxes and everyday living costs. Whether you’re a Blue Card holder, third-country national employee, or an expat family, many of these changes could affect your life here. We break it all down in clear terms so you know what’s new and what it means for you.
1. Immigration & Residency: Key Legal Changes
New Employer Info Duty (Residence Act)
From 1 January 2026, German employers are now legally required to inform newly hired third-country nationals (non-EU citizens hired from abroad) about their rights to free advice on German labor and social law on or before their first working day. This change aims to help expats better understand working conditions, contracts, and their protections in Germany.
What it means: If you were recruited from outside the EU and have a German employment contract, your new employer must give you this guidance in writing on day one.
Changes to Family Reunification
An amendment to the German Residence and Asylum Acts has introduced a temporary suspension of family reunification for refugees with subsidiary protection status. While this change was enacted in 2025, it’s still in force and important for many expat families in 2026, particularly those whose loved ones haven’t yet joined them.
Naturalization Pathway Update
A major shift in the citizenship landscape: Germany has abolished the three-year “fast-track” naturalization route which once allowed exceptionally well-integrated foreigners to apply for citizenship earlier. Instead, the five-year pathway remains the standard, even for highly skilled or well-integrated individuals.
Why it matters: This affects anyone planning to apply for German citizenship, you’ll generally need five years of residence (with certain conditions), not three.
European Asylum System Reform
The EU’s reformed Common European Asylum System (CEAS) will be transposed into German law by mid-2026. This is expected to streamline asylum procedures at borders, speed up decision processes, and clarify responsibilities between EU member states. How Germany implements the rules may change how long asylum procedures take and how benefits are administered.
2. Work & Employment Law Updates
Minimum Wage Rise
One of the biggest wage reforms in German history takes effect in 2026: the national minimum wage jumps to €13.90 per hour on 1 January 2026, with a further planned increase in 2027. This benefits hourly workers, including many expats in service, retail, or part-time jobs.
Minijob Threshold Increase
If you’re working a Mini-Job (a low-hours, often part-time role), the monthly tax-free income cap rises to €603 on January 1, 2026, meaning you can earn more before taxes apply.
3. Healthcare & Insurance Changes
Healthcare costs and options are shifting for expats:
Health Insurance Contribution Ceilings Increased
The contribution assessment limit (Beitragsbemessungsgrenze), the max income subject to statutory health insurance contributions has increased. Additionally, the threshold above which you may choose private health insurance (PKV) instead of statutory insurance (GKV) rises to €77,400 per year in 2026.
What this means: If your income is below that new threshold, you’re generally required to stay in the statutory system, which might mean higher contributions depending on income and provider.
4. Taxes & Cost of Living
Tax Cuts & Allowance Increases
The German government approved tax relief measures for 2026, including:
- A rise in the basic tax-free allowance (making more income tax-free)
- Increased child-related allowances and benefits
- Higher commuter tax deductions
These changes aim to ease the cost of living for families and workers.
Lower VAT in Restaurants & Cafés
A permanent VAT cut lowers the tax on meals in cafés and restaurants from 19% to 7%. This means many meals out will cost less than before.
5. Everyday Life: Transport & Utilities
Deutschlandticket Price Hike
The popular Deutschlandticket (for regional transport across Germany) now costs €63 per month, up from €58 last year starting January 2026.
Gas Surcharge Removed
Germany has scrapped the gas storage surcharge starting 2026, potentially lowering energy bills slightly for residents.
6. Credit & Consumer Rights
SCHUFA Score Transparency
From 2026, Germany’s credit scoring system (SCHUFA) will become simpler, more transparent, and easier to access online, which is great news if you’ve ever struggled to understand or manage your credit score here.
Wrap-Up: What Expats Should Watch
Here’s a quick checklist to help you stay ahead in 2026:
✔ Ask your employer about your labor rights and social-law advice if you’re a third-country national.
✔ Review your plans if you were aiming for accelerated naturalization, the pathway has changed.
✔ If you’re earning income, especially above the PKV threshold, double-check your insurance choices.
✔ For families: updated child benefits, tax allowances, and asylum reforms may impact your finances and plans.
✔ Expect changes in daily expenses, transport costs and restaurant bills look different than last year.