Do Not Move to Germany in 2025

Raphael Haase • February 27, 2025

Germany has long been celebrated as a leader in innovation, technology, and economic stability—a destination where digital professionals have traditionally thrived and advanced their careers. However, in recent years, this once-promising environment does no longer offer the same level of opportunities or support it once did. While the country has strong tech foundations and a rich culture, political and economic realities are painting a much more sobering picture for expats in the digital world.


If you're a tech professional considering a move to Germany, here are some key reasons why it might not be the right choice in 2025 and why you should consider other countries.


Personally, I left Germany years ago when I realized I was not only wasting my time there, but also felt unwelcome as a software developer in Germany.


A Decline in Responsibility In Germany


A significant concern for digital professionals considering work in Germany is the country's increasingly reactionary political climate, which has spent the past 16 years prioritizing the wrong issues and neglecting the most pressing topics. This failure cannot be attributed solely to German politicians; the German public also bears responsibility. Their influence on political decisions, reflected in how they responded to public polls and cast their votes, played a significant role in Germany's underperformance in the last two decades.


Populists Are Gaining Momentum


Germany’s political scene has become polarized, with parties on both the far-right and far-left gaining ground, neither of which offer any reasonable solutions to pretty much anything. The Alternative for Germany (AfD) continues to rise in voter support, fueled by anti-immigration rhetoric and dissatisfaction over economic policies. Far-left parties, such as The Left, are also pushing back against progress, employing rhetoric that is both anti-business and critical of hard work, entrepreneurship, innovation and technological progress.


While major parties like the CDU/CSU (Christian Democrats) and SPD (Social Democrats) have historically managed to maintain stability, their declining vote shares mean coalitions are becoming trickier to form. Empty slogans from populists with little understanding of life, business or really anything in life are increasingly gaining influence. A divided government makes implementing long-term strategies—such as funding digital infrastructure or supporting tech startups— close to impossible. For those in the tech space who rely on quick adaptation and forward-focused policy-making, this is at least red flag. As someone who left Germany years ago, I would consider it an outright dealbreaker.


Growing Political Instability and Rising Uncertainty


Populism and political extremism further complicate the situation. According to reports, coalition politics and public discontent have pushed voters to more extreme positions, with heated debates around immigration, energy policies, and the economy. While mainstream politicians currently reject formal alliances with extremist groups, informal collaborations have been witnessed in local governance over the past decade. This trend is likely to gain momentum, creating an unpredictable and volatile political climate. I truly hope history does not repeat itself, but this mirrors how the Nazis rose to power in 1930s Germany during a fleeting period when the country functioned as a relatively promising democracy. At the time, Conservatives believed they could establish a pragmatic, problem-focused government in collaboration with the Nazis. History has shown us the devastating consequences of that miscalculation.


For tech professionals, particularly expats, this environment can lead to uncertainty. Policies on immigration, work permits, and residency could shift without warning, making Germany less favorable for those seeking stability in their career paths.


Germans Don't Work So Hard Anymore


The average number of weekly working hours in Germany has steadily declined over the past 16 years.  In a country that prides itself on its strong work ethic and productivity, this might come as a surprise. While Germans have a reputation for being efficient and dedicated workers, the reality is that they now work fewer hours per week than most of their European counterparts. The OECD average for weekly working hours in Germany is 34.2 hours per week, while the EU average is slightly higher at 37.8 hours per week.


This decrease in working hours can be attributed to several factors, including changes in labor laws, an emphasis on work-life balance, and cultural norms surrounding leisure time.

You might ask: But isn’t this a good thing? And it certainly can be—if you use the extra time meaningfully. Whether it’s pursuing something ambitious like a PhD (effectively still working more hours per week) or dedicating that time to your family, your health, or personal growth, the benefits can be significant.


The issue, however, is that many Germans fail to embody this mindset. While they may work less, they often don't make productive use of their additional free time. This not only impacts GDP negatively but also fosters unproductive habits. When those around you are idle or unmotivated, it will influence your own mindset and behavior.



Economic Challenges Significantly Impact Startups


Germany, once the unrivaled economic powerhouse of Europe, now faces its share of challenges. While the tech sector shows potential, persistent economic hurdles and the relentless weight of an ever-expanding bureaucracy continue to stifle growth opportunities.


Rising Inflation and Energy Costs


The repercussions of the Russia-Ukraine conflict remain evident. Energy costs—a central concern for businesses—continue to stay high compared to global competitors. This is particularly concerning for startups and tech firms, which always run on tight budgets. At first glance, this may not seem directly relevant to you as a tech employee or freelancer. However, it ultimately impacts you through higher consumer prices, as living in Germany means you purchase goods and services from German businesses. This issue also poses significant challenges for startups, whether it’s your own company or the one you work for. Rising costs increase operational expenses, shortening a startup's runway with a fixed amount of investor funding. This, in turn, reduces its chances of surviving long enough to achieve profitability and become a sustainable business.


Additionally, inflation has impacted disposable incomes and consumer spending habits, affecting both B2C and B2B markets. Digital professionals working with German clients may find a shrinking customer base or reduced funding for digital transformation projects.


Ultimately, this suggests that you might be better off pursuing opportunities elsewhere—whether as a tech industry employee, a freelancer or service provider working with tech clients, or even as a startup founder carving your own path.


Industrial Competitiveness in Question


Germany's focus on traditional industries, such as automotive manufacturing, has left its digital transformation lagging. While there’s ongoing debate about balancing climate goals with industrial competitiveness, the tech landscape often takes a backseat. Companies and professionals focusing on innovation may find themselves frustrated by slow adoption rates and insufficient investment in digital infrastructure like high-speed internet and cloud technologies.


Labor and Tax Policy Challenges


The multifaceted tax system in Germany is another pain point. Tax procedures remain complex, burdening businesses with not only high tax rates but also significant accounting costs, excessive paperwork, and time-consuming compliance tasks. This leaves less time for everyone—entrepreneurs and tech workers alike—to focus on meaningful, productive, and enjoyable pursuits. Additionally, ongoing labor shortages pose challenges, though debates around immigration policies haven’t translated into actionable reforms that make it easier for skilled international workers to integrate. With the AfD gaining momentum in Germany and segments of the political left increasingly adopting anti-immigration stances, I predict that skilled immigration to Germany will face growing challenges. For now, I expect little progress in preventing the small share of immigrants involved in criminal activities from entering. Even less progress can be expected in ensuring that criminal Germans and EU citizens, who often face minimal consequences for their actions, are properly held accountable.



Public Priorities Overlook Digital Development


While Germans generally recognize the need for modernization, the public’s priorities often diverge from the needs of the digital professional community. According to public discourse and surveys in 2024 and 2025, priority areas include:


  • Housing affordability through price regulation instead of increased supply. Many Germans fail to recognize that regulating housing prices in the face of constant demand is not a sustainable solution. The key lies in increasing the housing supply and promoting remote or hybrid work opportunities, allowing people to live in a wider range of locations. In contrast, implementing price caps on housing is counterproductive. Such measures discourage developers from constructing new homes or renovating existing ones, ultimately failing to provide more affordable housing in the long term. As long as these misguided political ideas persist, affordable housing will remain out of reach for many in Germany's major cities.
  • Breitband-Ausbau (fast internet in everyone's home and office) remains stalled. For over a decade, German politicians have promised to bring fiber internet to every home, yet progress has been painfully slow. Bureaucratic hurdles persist, and the country currently ranks 56th out of 152 globally for both mobile and landline internet—a clear sign that the promises remain unfulfilled and that really it's just all hot air. Germany's fixed-line internet performance trails behind countries such as Ecuador, Colombia, Thailand, Uruguay, Moldova, Cyprus, and Montenegro. It ranks only slightly higher than Paraguay, the Philippines, Guyana, and Argentina. The lack of progress in connectivity has a profound effect on small and medium-sized businesses, especially those in rural or non-urban areas. Slow internet speeds hamper productivity, disrupt the use of cloud-based applications, and render video calls and presentations unreliable. Tasks such as software updates or off-site cloud backups become unnecessarily complex, creating further challenges for these businesses.
  • Digitalization? Not here: This situation is hardly surprising. For decades, German industry and policymakers have prioritized heavy machinery and traditional sectors, with fax machines once regarded as cutting-edge technology. Even today, the German government and judicial system rely heavily on paper mail and fax machines. Digital government services, where available, are often inefficient, overly complex, or impractical, reflecting a broader resistance to modernizing infrastructure.


Simply put, the German population’s concerns aren’t currently aligned with fostering a tech-forward environment conducive to rapid innovation. An expat may find this frustrating when considering other global hubs like Zürich, Singapore, Talinn or Lisbon, where tech-first policies are actively being pushed.


Why These Issues Matter to Digital Professionals


Ultimately, digital professionals thrive in environments that enable innovation, adaptability, and growth. Germany’s current climate suggests:


  • Greater bureaucratic barriers for expats in securing work opportunities, becoming freelancers or starting their own business.
  • An economy where digital transformation takes a backseat to traditional industries.
  • Uncertainty caused by political populists and opportunists, with the potential for policy reversals affecting work permits and startup ecosystems.


For digital nomads or tech professionals who rely on seamless internet access, flexible regulations, and startup-friendly environments, this makes Germany less of a safe bet compared to its recent past. Much better alternative exists at the moment.


Alternatives to Consider


If you're looking for opportunities in 2025, several other European countries, as well as global hubs, might serve you better:


  1. Switzerland   Zürich, Zug, Basel and Geneva are not only tech powerhouses but real centers of innovation.
  2. Portugal – Lisbon is making waves with its incentives for digital nomads and a vibrant tech community.
  3. Estonia – Known for its e-residency program, Estonia is perfect for remote workers and startups alike. Estonia isn’t just appealing as a tax residency or a convenient placeholder. The country, and Tallinn in particular, offers exceptional charm and appeal for those considering a longer-term place to call home.
  4. Singapore – For those willing to look beyond Europe, Singapore combines excellent financial infrastructure with a cutting-edge tech scene.


Final Thoughts


While Germany remains an attractive destination in some ways, 2025 and the next few years are probably not the ideal time for digital professionals to make the move. Political instability, economic challenges, and public priorities that overlook the digital sector suggest that other global and European hubs may better meet the needs of tech-minded expats.


Before making your decision, weigh these factors carefully—and if you're looking for a location that supports innovation and adaptability, explore other countries where digital transformation is actively being prioritized. Germany will hopefully bounce back at some point in the future, but for now, there are simply better places you should move to instead.


This article is not financial, tax or legal advice by any means.

I am only sharing my own personal experiences here.

Always seek professional financial, tax or legal advice before making decisions.

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