Legal Changes in 2026

As usual, the new year comes with numerous legal changes. Some initiatives that were originally intended to take effect at the beginning of the year have not yet been enacted. If and how these legislative proposals will still be implemented is currently unclear. Below, we aim to provide a concise overview of the most important legal changes for 2026 that every entrepreneur should know. As there are always numerous tax changes, we will only cover some of the most important ones.

1. The NIS 2 Implementation Act is (finally) here

The NIS 2 Directive (EU) 2022/2555 was only implemented into national law on 6 December 2025, with considerable delay, through amendments to the BSI Act. The new provisions came into effect immediately and are intended to improve protection against cyberattacks and targeted hacker attacks. Affected companies must take appropriate and proportionate technical and organizational measures to prevent disruptions to the availability, integrity, and confidentiality of their IT systems. According to estimates, approximately 30,000 companies fall under the new BSI Act and must now also register with the Federal Office for Information Security (BSI). The BSI offers entrepreneurs an automated guidance tool that they can use to assess whether they are affected.

2. AI Regulation

As of 2 February 2025, the first prohibitions on the unauthorized use of artificial intelligence are in force under the AI Regulation (EU) 2024/1689. For example, certain practices involving the use of AI for subliminal influence, exploitation of vulnerabilities, or social evaluation are prohibited if they result in unjustified discrimination. From 2 August 2026, in addition to the far-reaching requirements for so-called high-risk AI systems, transparency obligations will also apply in particular – AI-generated texts, images, audio files, and videos must then be clearly recognizable as such.

Hopefully, the EU Commission will provide concrete guidelines for the classification of high-risk AI systems by 2 February 2026, at the latest, according to its obligation under the AI Regulation. However, the EU Commission has announced that the entry into force of further provisions of the AI Regulation could be delayed, due to the draft “Digital Omnibus,” which aims to simplify EU digital legislation.

3. EU Data Act: Access by Design

As of 12 September 2025, the Regulation on harmonized rules for fair data access and use (EU) 2023/2854 (“Data Act”) has been directly applicable throughout the EU. Most of the provisions (e.g., on information obligations, data access rights, or switching conditions) are already applicable. However, the “access by design” requirements only apply to connected products and related services that are placed on the market after 12 September 2026. Companies must then design their connected products and related services in such a way that data access is directly possible in accordance with the requirements of the Data Act.

4. Expansion of the research allowance

In July 2025, the German government adopted the so-called “Growth Booster” package of measures to strengthen the economy. As part of this package, the tax research allowance was expanded. Since January 2026, the maximum assessment basis for the research allowance has increased from ten to twelve million euros. In addition, flat-rate deductions are intended to simplify procedures and reduce bureaucracy.

5. Product Liability Directive and national implementation

The new Product Liability Directive (EU) 2024/2853, which we already reported on in last year's preview, applies to all products placed on the market or put into service from 9 December 2026. The new product liability law will lead to a noticeable increase in liability for companies. The German legislature must implement the provisions of the EU directive into national law by 9 December 2026. In future, not only conventional products will be covered, but also digital goods such as robots and smart home systems. An important aspect of the directive is the obligation for manufacturers from third countries: products offered on the EU market must always provide for an economic operator within the EU to whom any injured parties can turn with claims for damages.

6. Labor law

• Minimum wage law and active pension

The statutory minimum wage increased to EUR 13.90 per hour as of 1 January 2026.

Before the latest Christmas break, the Bundesrat approved the so-called “active pension”, which is not a real pension, but a tax break by which the federal government aims to respond to challenges in the labor market and strengthen the German economy. The reform enables pensioners to earn up to EUR 2,000 per month tax-free from employment after reaching the standard retirement age of 67. Income exceeding this amount is fully taxed. Employers continue to pay social security contributions for these employees, which strengthens the stability of the social security system. The active pension does not cover marginal employment (mini-jobs) and income from self-employment, as these already benefit from tax advantages.

• Tax Incentive for the Part-Time Top-Up Bonus (“Teilzeitaufstockungsprämie”)

The introduction of the so-called Part-Time Top-Up Bonus is planned for 2026. The aim is to create an incentive for part-time employees to increase their working hours. The bonus can amount to up to EUR 4,500 tax- and social security-free, provided that the weekly working hours are permanently increased for at least 24 months.

• EU Pay Transparency Directive and Pay Transparency Act

The EU has strengthened the principle of “equal pay for equal or equivalent work” with the Pay Transparency Directive (EU) 2023/970. All member states must implement the requirements by 7 June 2026. Germany already meets some of the requirements of the EU Directive on pay transparency with its Pay Transparency Act, but minor changes are yet required.

From 7 June 2026, companies with at least 100 employees will be required to provide information and regular reports on gender-specific pay differences. If there is a pay gap of more than five percent without objective reasons, employers must examine the causes with employee representatives and take appropriate measures. Another new feature is the reversal of the burden of proof: in future, companies will have to prove that existing pay differences are objectively justified.

7. Compliance

• New EU environmental criminal law awaiting national implementation

Environmental crime will be punished more severely in future. EU Directive (EU) 2024/1203 sets minimum standards for the prevention and criminalization of environmental crime. The deadline for national implementation is 21 June 2026. The draft bill from the Federal Ministry of Justice and Consumer Protection to implement Directive (EU) 2024/1203 tightens German environmental criminal law. With new types of offenses, expanded criminal acts, the inclusion of the "ecosystem," and significantly increased corporate fines, the risk of criminal consequences for companies and their management is rising. Companies should incorporate the regulations into their compliance management systems in good time.

• CBAM: The CO2 border adjustment mechanism

The Carbon Border Adjustment Mechanism (CBAM) affects all EU-based importers who import iron, steel, cement, aluminum, electricity, fertilizers, hydrogen, and certain upstream and downstream products from non-EU countries. Regular operation will start in 2026: only companies with “authorized CBAM declarant” status are permitted to continue importing these goods. In addition, they will gradually be required to purchase and surrender CBAM certificates and submit CBAM declarations. Since 1 January 2026, the CBAM rules apply to companies that import at least 50 tons of CBAM-relevant goods per year. Those below this threshold are exempt. The EU Commission recently published important guidelines. These include specifications for calculating emissions and the standard values and benchmarks to be applied to make implementation more concrete for companies.

• Deforestation regulation still pending

European lawmakers have agreed to further postpone the entry into force of the EU Regulation on deforestation-free supply chains (EU) 2023/1115. FGvW had already reported on the planned postponement and its contents. The regulation was originally meant to come into force at the end of 2024. This date was postponed to the end of 2025 at short notice last year and is now postponed to 30 December 2026. For smaller companies with fewer than 50 employees and an annual turnover of less than EUR 10 million in relation to the products concerned, the regulations will not apply until 30 June 2027. In addition, several simplifications to the content were also agreed.

• Changes to the EU Supply Chain Act

On 9 December 2025, the European Council and Parliament agreed to significantly weaken the Supply Chain Due Diligence Act Directive. The scope of application has been significantly reduced. Accordingly, the directive now only applies to companies with more than 5,000 employees and a global annual turnover of at least EUR 1.5 billion (previously 1,000 employees and EUR 450 million turnover). The scope of monitoring obligations has also been limited: companies are only obliged to take action where they suspect a high risk and can rely on “reasonably available” information from their suppliers. In addition, the implementation deadline for the new requirements has been further postponed to 26 July 2028.

Regardless of the above, the German Supply Chain Due Diligence Act (LkSG) has been in force since 1 January 2023. However, the federal government plans to ease the burden by making the law more user-friendly and easier to enforce. For example, the reporting requirement is to be abolished, while the due diligence obligations themselves will remain in place. In future, however, only serious violations will be sanctioned. It is still unclear when these changes will be decided and take effect.

8. Changes to civil procedure law

The limit on the value of claims up to which local courts can rule on general civil law proceedings has been raised from EUR 5,000 to EUR 10,000 with effect from 1 January 2026. Since there is no obligation to be represented by a lawyer before the local courts, it remains to be seen whether this will actually improve access to the courts. The planned expansion of specialized chambers at the regional courts – for example, for disputes arising from medical treatment, procurement procedures, and publications (Section 71 (2) draft Courts Constitution Act – GVG-E) – is positive news.

9. New EU packaging law

The new EU Packaging Regulation (EU) 2025/40 (“PPWR”) will come into force on 12 August 2026 – one of the biggest changes in European waste law in years. Manufacturers, distributors, and importers will have to comply with new labeling, recycling, and licensing requirements. The new regulations will come into force in stages from 12 August 2026.

10. Protection against greenwashing

From 27 September 2026, the EU will introduce stricter rules against misleading environmental and sustainability claims by means of the EmpCo Directive (EU) 2024/825. Terms such as “environmentally friendly”, “eco”, “green,” or “climate neutral” may only be used by companies if they can substantiate them with concrete, verifiable data. Without such evidence, such claims will be prohibited. The goal is to provide consumers with reliable and comprehensible information on environmental and sustainability aspects.

11. The right to repair is on the way

By 31 July 2026, at the latest, Germany must transpose the “Right to Repair” Directive (EU) 2024/1799 into national law. Manufacturers of certain products will then be obliged to offer repairs on fair terms even after the warranty period has expired. If consumers choose repair instead of replacement in the event of a defect, their warranty period will be extended. We already provided further details on the right to repair in this article in 2024.

12. Amendment to the Electrical and Electronic Equipment Act (ElektroG)

Since 1 January 2026, new obligations apply to retailers. In future, single-use and reusable e-cigarettes must be taken back at all points of sale. Uniform labeling of collection points is also mandatory. The crossed-out garbage can symbol on store shelves now clearly indicates that electrical devices must be disposed of separately at the end of their service life. Improved customer information is crucial to increase the return of used devices for recycling and thus conserve resources.

13. Other important changes in consumer law

From 28 September 2026, consumers across Europe will see a uniform pictogram based on EU Directive 2024/825 for legal warranties and guarantees. The new pictograms are intended to avoid misunderstandings about the difference between warranty and guarantee. However, the current implementation of the directive and publications at EU level suggest that the pictograms could even mislead consumers in some cases.

In addition, from 19 June 2026, all companies that sell goods or services to consumers via online shops will be required to provide a cancellation button, regardless of their size, turnover, or legal form. Retailers on online marketplaces must also offer a cancellation button, whereas the technical implementation in this case is the responsibility of the platform operator. Those who do not offer a button or offer a faulty button risk heavy fines: up to 4% of annual turnover for large companies and up to EUR 50,000 for smaller ones.

Conclusion

The new year brings several important changes that entrepreneurs must prepare for. Some adjustments are not expected to be implemented until the second half of the year. We will keep you informed about further developments and are happy to continue to support you with your questions in 2026.