New Year, New Changes: Higher Costs in Many Areas
As of January 2025, some changes will take effect, with higher costs in many areas. The base price for the “Germany Ticket” will increase from 49 to 58 euros. The price for the standard letter at the post office will also rise, from 85 to 95 cents. Postcards, compact letters, and large letters will cost more as well, with the port for the maxi letter increasing by 15 cents to 2.90 euros.
At the same time, the new postal law will allow for longer delivery times for letters, with 95% of letters expected to arrive on the third day after posting, instead of the first or second day as previously required.
Electronic Transfers: Faster and Wider Availability
Starting January 9, 2025, banks and savings banks will be required to accept and send “real-time transfers” without surcharges. Many banks already offer this service, but often for a fee, which will be abolished. With real-time transfers, the money will arrive at the recipient’s account within 10 seconds.
Internet Speed: Consumers to Have More Leverage
If the internet connection does not meet the agreed-upon speed and bandwidth, consumers will be able to reduce their internet bill or cancel the contract as of the new year. The Federal Network Agency has already set specific guidelines and a measuring tool to prove slow internet speeds.
Less Cable Clutter: EU’s New Standard for Mobile Devices
The implementation of an EU directive will lead to less cable clutter, as it will only require a standard USB-C connector for smartphones, tablets, and other mobile devices.
CO2 Price: Increase to 55 Euros per Ton
The CO2 price, introduced by the German government in 2021, will increase to 55 euros per ton as of the new year, affecting fossil fuels such as heating oil, natural gas, gasoline, and diesel.
Electronic Patient File: Pilot Phase to Begin in January
The electronic patient file, initially available in pilot regions in Hamburg, Franconia, and parts of North Rhine-Westphalia, is expected to be available nationwide by March, pending the outcome of the pilot phase.
Healthcare: Changes in Contribution Rates and Amalgam Use
The average additional contribution rate, which health insurance companies can charge on top of the general contribution rate of 14.6%, will increase to 2.5% as of the new year. However, each health insurance company will decide individually whether and to what extent it will increase the contribution rate. The use of amalgam for new fillings will no longer be allowed in the EU as of January 1, 2025.
Pension Insurance: Contribution Rate to Increase
The contribution rate for pension insurance will increase by 0.2 percentage points, to 3.6% of the insured income, with an exception for childless individuals, who will see their contribution rate rise to 4.2%.
Tax: Changes and Relief
The basic allowance will increase by 312 euros to 12,096 euros, and the tax-free allowance for children will rise by 30 euros to 3,336 euros per parent. The child benefit will also increase by 5 euros to 255 euros per month and child. The solidarity surcharge will only be applicable to those earning at least 39,900 euros in income tax or trade tax, with the exemption limit increasing by 3,640 euros.
Childcare Expenses: Increased Allowance
The allowance for childcare expenses, previously capped at 4,000 euros per child, will increase to 80% of the expenses, up to a maximum of 4,800 euros per child, as of 2025.
Real Estate: Changes to the Property Tax
The property tax, also known as the “reformed property tax” will be reformed in various states, with Baden-Württemberg, Bavaria, Hamburg, Hesse, and Lower Saxony introducing their own models. Other states will deviate from the federal model, with Berlin, Bremen, Saarland, and Saxony doing so in the area of tax assessment, and North Rhine-Westphalia, Rheinland-Pfalz, Saxony-Anhalt, and Schleswig-Holstein in the area of the municipal surcharge, with the final decision on the surcharge rate left to the municipalities.
Tobacco and Beer: Changes to Taxation
The tobacco tax will increase to 11.71 cents per unit and 19.84% of the retail price, with a minimum of 24.163 cents per unit. The tax on fine-cut tobacco will be 57.85 euros per kilogram and 17.20% of the retail price, with a minimum of 121.51 euros per kilogram, both without VAT.
Beer Production: Increased Exemption for Homebrewers
The exemption for homebrewers will increase from 2 to 5 hectoliters, with the previous notification obligation for the brewing process being abolished.
Solar Panels: Increased Capacity for Private Homes
The maximum allowed capacity for solar panels on private homes will be increased to 30 kilowatts (peak) per residential or commercial unit, with the previous limit of 15 kilowatts (peak) per unit for multi-unit buildings being abolished.
E-Invoices: Wider Adoption and Exceptions
Companies will be required to accept and send electronic invoices (E-invoices) starting January 1, 2025, with exceptions for small businesses with an annual turnover of up to 800,000 euros until the end of 2027. However, all domestic companies will be required to be able to receive E-invoices by January 1, 2025, with the provision of an email mailbox being sufficient.