What’s New for Expats in Germany in 2026? Key Legal, Visa & Cost-of-Living Changes

It might only be the start of 2026, but we’re already seeing major changes to day-to-day life in Germany. This year is set to bring a series of changes to immigration law, including for Blue Card holders, while the rising cost of living is expected to continue. Although the German labour market is in decline, the country is still open to skilled migrants, although financial and compliance requirements are increasing.

Whether you’re an expat already in Germany or currently working with an immigration lawyer in Berlin to prepare for your move, we’re sharing the 6 major changes that are likely to affect you in 2026.

1. Higher Minimum Wage in Germany 

The statutory minimum wage in Germany is increasing from €12.82 to €13.90 per hour, with this change applying nationwide and for all employment contracts, including for foreign workers. The minimum wage will then increase to €14.70 per hour in 2027, giving Germans the second-highest minimum wage in the EU after Luxembourg.

Student visa holders will benefit from higher hourly pay, while work visa holders will have to ensure that their salaries meet minimum legal thresholds to remain compliant with the terms of their visa requirements. It’s important to note that this higher minimum wage does not automatically mean a job will meet the requirements for a work residence permit. 

2. Higher Minimum Salary for the EU Blue Card 

The general minimum salary for an EU Blue Card has increased from €48,300 to €50,700 per year. This threshold applies except in cases where there is a skills shortage, such as for medical staff. New applicants will have to meet the updated threshold, and existing Blue Card holders will need to be aware that employment changes will result in their application being reassessed under this new salary benchmark.

3. Rising Health Insurance Costs: The Sharpest Increase in Years

Public health insurance contributions are also set to rise significantly in 2026. This change is driven by higher healthcare spending, growing demographic pressure, and an increase in the additional contribution (Zusatzbeiträge) charged by providers. As health insurance is mandatory for all residence permits, it’s crucial to ensure that you budget adequately for your health insurance contributions. Having insufficient health insurance can result in delays to your visa application and renewal issues. 

4. Deutschlandticket Becomes More Expensive 

The cost of a Deutschlandticket, a nationwide public transport ticket, has risen from €58 to €63 per month for 2026, following a similar price hike in early 2025. While the Deutschlandticket will continue to be valid for local and regional transport across Germany, it is further contributing to the rising cost of living. Expats living in larger cities, including Berlin and Munich, will want to prepare for higher monthly costs, although some employers may offer transport subsidies to help offset this price increase.

5. Reduced VAT in Cafés and Restaurants

VAT on food consumed in cafes and restaurants has been reduced from 19% to 7%, meaning your bill at the end of lunch or a dinner out with friends is going to be considerably lower than it was a few months ago. This change is designed to support the hospitality sector during this time of economic decline and takes inspiration from a similar COVID-era policy.

6. Higher Cost of Living for Foreigners in Germany

These changes have contributed to a higher cost of living for both German nationals and foreigners alike. While some relief, such as the reduced VAT in cafes and restaurants, is helping to offset higher transport and health insurance costs, the required financial proof for visas is being indirectly affected by these inflationary pressures. 

Are you an expat living in Germany or looking for an immigration lawyer in Berlin? You can explore our blog for more advice on applying for a work visa or book a virtual appointment with a VISAGUARD lawyer for advice on your immigration journey.