Types of Incentives Available to Investors in Germany

Written by: Editor

Germany welcomes foreign investments and has a wide array of incentives and incentive programs to support the initiatives of entrepreneurs from around the world. The types of available incentives range from cash ones to those for research and development activities and they also include special ones that are related to employment and labor in general. Our team of German lawyers highlights the main types of investment support available to foreign entrepreneurs.

Cash incentives in Germany

Companies have access to cash grants that can help reduce the set-up costs of a production facility which they open in Germany. This incentive programme is a territorial one with funding rates depending on the chosen areas of investment and the economic development of that region. For example, in the region located within the Polish border area, the grant for small companies can be as high as 40 percent of the set-up value. In the same area, other types of companies will have access to different grant percentages. For example, large companies will have a maximum 20% grant.

Support for research and development activities

Research and development activities in Germany are among the ones that enjoy the highest level of support. To be able to benefit from R&D support, companies must present an R&D project, including its clearly defined objectives and a pre-defined timeline. The three categories of grants include fundamental research, industrial research, and experimental development. Our attorneys in Germany can offer you additional details about the incentive programme for research and development activities.

Labor incentives 

Labor incentives include a number of programs, from support for searching for staff to the takeover of costs for training. These types of grants do not depend on the size of the company, the region where it is located or the industry in which the company activates. Training support and wage subsidies are two different categories of labor incentives.
The team at our law firm in Germany can give you complete details about how to apply for these various incentives and can help you determine which ones you best qualify for, according to the type of company and industry.
Contact us for more information about the investment law in Germany and the treatment of foreign investors.