July 2025: 8 changes affecting expats in Germany

Heavy on the paperwork, July’s changes will make you grateful that it’s fun in the sun season. Tax returns are due, pension payments and insurance contributions are increasing, and the gas storage levy will be reduced. 

1. 2024 tax returns due on July 31

The deadline isn't until the end of the month, but given its importance, we’ve put it at the top of our list. The deadline for filing your 2024 tax return in Germany is July 31, 2025.

For the tax years 2019 to 2024, the deadline for filing a return was extended to September each year because of coronavirus. 2025 is the first year to return to the “normal filing deadline” in July.

If you work with a tax advisor to submit your tax return, you have a bit longer; the deadline to submit your 2024 declaration is not until March 1, 2026.

2. Tax advisor fees will increase

More on tax: In July, the standard fees for certain tax advice services will rise. This is because the new Tax Advisor Remuneration Act (Steuererklärungsvergütungsverordnung) will come into force. 

The value fee (Wertgebühr) will increase by 6%, the payroll accounting fee will increase by 9%, and the time fee (Zeitgebühr) will be calculated in 15-minute rather than 30-minute increments. 

3. Pension payments will increase

Germany’s annual pension increase will happen on July 1. The 3,74% increase is based on current inflation rates and will amount to around 66,51 euros more per month for those on a standard pension (with average earnings and 45 years of contributions).

4. Long-term care insurance contributions will increase

As of July 1, pensioners will be required to contribute more to their long-term care insurance (Pflegepflichtversicherung).

On January 1, 2025, the German government increased the basic contribution rate for long-term care insurance by 0,2% to 3,6%. People working in Germany have been contributing at this new rate since the beginning of the year, but it has not yet been applied to statutory pensions.

The new rate will also take effect for pensioners from July. “The new long-term care contribution will be deducted for the first six months of 2025. In July, pensioners will make a one-off contribution of 4,8%,” the German Pension Insurance Association (Deutsche Rentenversicherung) explains on its website.

5. Pay rises for elderly care workers

From July 1, people working in elderly care will receive a pay rise; their minimum wage will increase from 15,50 to 16,10 euros per hour. 

Qualified elderly care workers who have completed a one-year apprenticeship will see a pay rise from 16,50 to 17,35 euros per hour, and specialist elderly care nurses will get a pay rise from 19,50 euros to 20,50 euros per hour.

6. Gas storage levy will be reduced

From July 1, Germany’s gas storage levy (Gasspeicherumlage) will be reduced from 0,299 cents per kilowatt hour to 0,289 cents/kWh. 

The Gasspeicherumlage was introduced in 2022 and obliges gas consumers to bear the costs of the government storing natural gas, which ensures supply in Germany.

7. New energy-saving labels for tumble dryers

In March 2021, the EU introduced a new set of energy labels for household appliances, designed to help customers reduce their utility bills and carbon footprint. Appliances are given a rating between A and G, and information about the product’s rating is shown on the sticker.

These new labels were initially only required for specific appliances, including refrigerators, freezers, and washing machines. From July 1, all tumble dryers sold in the EU will also bear an energy information sticker.

8. Exempt from execution limits will rise

From July 1, Germany’s “exempt from execution” limit (Pfändungsfreigrenze) will rise. The Pfändungsfreigrenze ensures that people in debt receive a portion of their income, allowing them to pay their living costs. 

The monthly Pfändungsfreigrenze for single people will increase from 1.491,75 euros to 1.555 euros before tax.