GTAI News
Investment Guide
Investment Guide to Germany
Coming to Germany: Visa and Entry Regulations
Germany distinguishes between different kinds of residence titles for specific purposes subject to the length of stay and the intended (business) activity in Germany. Residence titles include Schengen and national visas, residence and settlement permits. A Schengen visa is sufficient for conducting most business and administrative activities that need to be organized prior to locating to Germany.
Company Set Up
Company Set Up
Setting up a German market presence requires a legal structure. Expanding foreign companies generally opt to establish a local subsidiary or register a local branch office.
A subsidiary is an independent company established and predominantly held by another company (parent company). Foreign companies often choose the private limited liability company option (Gesellschaft mit beschränkter Haftung – GmbH) for local subsidiary formation. The main reason for the popularity of a subsidiary in the form of a GmbH is the separate limited liability, which this company form offers.
Incentives Programs
Incentives Programs
Germany offers numerous incentives for foreign investors. There is a variety of programs available, designed to fit the needs of economic activities at different stages of the investment process.
Company Taxation
Corporate Taxation
Germany offers a competitive system of corporate taxation. The average tax burden is just under 30 percent, with a number of municipalities offering lower rates. All corporations – including the limited liability company (GmbH), the stock corporation (AG) and German permanent establishments of foreign corporations – are subject to corporate income taxation. Income taxation of corporate companies generally consists of three components: corporate income tax, solidarity surcharge, and trade tax.
Customs
Customs
All member states of the European Union (EU), including Germany, form a customs territory - the European Customs Union - in which unified customs arrangements apply.Goods imported into the EU are subject to EU-wide import regulations, customs tariffs and customs procedures. This means that customs duties are only levied when the goods are imported into the EU. No further customs duties must be paid within the customs territory once goods have been imported into the EU - even in cases where the goods cross internal borders of member states.
Employees and Social Security
Employees and Social Security
Germany is Europe’s largest employment market. It offers flexible employment models. Social insurance contributions in Germany are roughly shared equally by employer and employee. A company's success very much depends on its employees. Germany offers a very well-trained workforce. There are various ways of recruiting staff in Germany. In some cases, even public funding for hiring employees can reduce the operational costs when starting a new business.
Business Location
Investment Environment
The German Market - Europe’s Economic Hub
Germany is Europe's best performing economy. Small and medium-sized enterprises drive the market and dynamic trade relationships within Europe and beyond offer plenty of business opportunities.
Productivity in Germany - Key Data
Productivity in Germany - Key Data
An excellent labor force and efficient production processes have led to an increase in productivity - higher than labor costs - over the past decade. Germany's reputation as a production powerhouse precedes it. A highly skilled workforce, stable labor costs and advanced manufacturing developments make it the production site for new innovations.
Innovation in Germany - Research and Development
Innovation in Germany - Research and Development
The worlds of business and science work hand-in-hand to create German innovation that is a global export leader.Germany is home to many companies that are global leaders in the development of new technologies. For over a century, “Made in Germany” has stood for innovation and excellent quality. According to World Bank statistics, German high-tech exports reached EUR 158.2 billion in 2020.