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Why Invest in Germany

Why Invest in Germany?

Updated on Monday 14th September 2015

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Why-Invest-in-GermanyGermany is a very attractive country in terms of foreign investments as it has the largest economy in the Europe. Among Germany’s strengths, investors will find the industry, the specialized labor force and the geographical position of the country in the heart of the continent.

Benefits of investing in Germany

There are a lot of benefits for foreign investors looking to expand their business or set up new companies in Germany. Along with the developed infrastructure investors will benefit from:

  • -        Advanced technology that will ease integration in many industrial sectors;
  • -        The workforce that is highly specialized and educated and most of the German employees speak English so communication barriers are almost inexistent;
  • -        It is well-known that Germany is the second biggest exporter and the third largest importer in the European Union, so the trading is one of the country’s most important generator of income;
  • -        There is no discrimination in terms of taxation or company registration between national and foreign investors;
  • -        The taxation system in Germany is very competitive compared to other EU member states’ taxation systems;
  • -        The corruption is limited to a minimum which is in the best interest of foreign investors;
  • -        Foreign investors can buy and own properties in Germany without the risk of being expropriated;
  • -        Foreign investors are allowed to have a majority shareholding in a German company;

Foreign investment policies in Germany

The government encourages foreign investment is Germany through attractive tax deductions, financial loans for enterprisers investing in research and development and other incentives depending on the sector the investor wants to put money into, but generally the government allows foreign investors are allowed to access all sectors, such as telecommunication and can wholly own German companies.

Germany has signed bilateral investment treaties (BITs) with numerous countries and double taxation agreements with about 90 countries.

Investment sectors for foreign investors

Foreign investors have many opportunities in many sectors in Germany and some of them will prove to bring in a high income. Some of these sectors are:

  • -       Consumers goods- Germany has the largest population in the EU, thus investing in the food industry or the machinery industry might prove very profitable;
  • -        Tourism- Germany is a an appealing destination for tourists so entrepreneurs can invest in tourism facilities and accommodation;
  • -     Education- Germany is very renowned for its specialized and educated workforce, thus investing in school and colleges is a big opportunity for foreign investors.

 

Germany is top destination for foreign investment for those wanting to establish companies. You can contact our German lawyers for details about company incorporation.

 

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