Tax Changes 2025/2026: Key Innovations for Companies, Employers, and Investors

The years 2025 and 2026 bring a multitude of tax changes affecting companies, employers, capital investors, and property owners. Some regulations are already in force, others are still in the legislative process or have been announced.

This results in numerous new areas of action and design possibilities for tax advice.

Below is a structured overview of the most important changes.

1. Important Changes for Companies and Managing Directors

Reintroduction of Declining Balance Depreciation

A temporary declining balance depreciation applies to certain movable assets. Companies can claim investments more quickly for tax purposes and achieve liquidity advantages. The depreciation rate can be up to 30%.

Special Regulations for Electric Vehicles

Attractive depreciation models with high initial rates apply to purely electric vehicles. Additionally, the threshold for the 0.25% taxation on private use of company cars has been raised to €100,000 gross list price.

Corporate Tax Gradually Reduced

From 2028, a gradual reduction of corporate tax is planned. The tax rate will decrease annually to 10% by 2032.

Research Allowance Expanded

From 2026, eligible expenses will be increased. At the same time, tax incentives for research and development will rise significantly.

2. Digitalization in Tax Law

E-Invoicing Becomes Mandatory

The introduction of e-invoicing is progressing further:

• 2025: Obligation to receive electronic invoices

• by 2027: Transitional arrangements for smaller companies

• from 2028: Mandatory use for almost all companies

Reporting Obligations for Cash Register Systems

Electronic cash register systems must be reported to the tax authorities. New systems must be reported within one month, existing systems within defined transitional periods.

3. VAT and Small Business Owners

New Small Business Regulation

The turnover limits have been adjusted. Particularly relevant is the mid-year change when exceeding the threshold of €25,000.

Gastronomy: VAT Permanently Reduced

For on-site meals, a permanent reduction to 7% VAT is planned. This can have significant impacts, especially for catering businesses.

4. Employers and Employees

Electronic PKV Data Retrieval

From 2026, private health insurance contributions will be digitally transmitted to the tax authorities. Paper certificates will be eliminated.

Tax-Free Employer Benefits

Non-cash benefits up to €50 monthly and various tax-free additional benefits such as job tickets or employee shareholdings remain attractive.

New Work-Related Regulations in Planning

Planned measures include:

• Active pension with tax-free additional earnings

• Increase in funding amounts for occupational pensions

• Adjustments to the distance allowance

5. Capital Investors and Cryptocurrencies

New Administrative Opinion on Crypto Assets

Cryptocurrencies continue to be treated as private assets. Profits remain tax-free after a holding period of one year if held in private assets. In business assets, however, full tax obligations apply.

New Reporting Obligations (DAC 8)

From 2026, expanded reporting obligations for crypto service providers and platforms are expected.

6. Real Estate and Leasing

There are also important developments in the real estate sector:

• BFH jurisprudence on commerciality in real estate sales will be specified

• Maintenance reserves are only deductible upon actual outflow

• Holiday homes continue to be strictly examined regarding the intention to generate income

• Property tax procedures remain in focus due to pending BFH decisions

7. Other Relevant Changes

• Loss offsetting for capital gains partially liberalized

• Artists' social security contribution slightly reduced

• Trainer and volunteer allowances are to be increased

• Influencers and digital business models remain in the focus of tax authorities

Conclusion: High Advisory Demand for 2025/2026

The tax changes of 2025 and 2026 are comprehensive and affect almost all client groups. Especially the topics of digitalization, investment incentives, and new reporting obligations require early preparation.

For companies, there is also the opportunity to actively utilize tax planning opportunities – particularly in investments, personnel measures, and the choice of legal form.