Germany: Investing

FDI in Figures

Germany is an attractive country for direct foreign investment. However, due to the global financial crisis, the FDI flows dried up and should remain less dynamic even in the coming years.
The country's strengths are: a fabric of the industrial sector which is dense and powerful, a skilled workforce which has a good command of the English language, as well as a geographic location in the center of Europe. Germany's main weakness is its high taxation rate (of both individuals and corporations).

Why You Should Choose to Invest in Germany

Strong Points

Germany's strong points are:
- A strategic location at the center of Europe;
- The biggest population of the European Union;
- Advanced technology and expertise;
- A highly qualified work force;
- Competitive taxation.

Weak Points

Public finances are stucturally highly in deficit. The eastern part of the country is struggling to catch up in many fields. The ageing population weighs heavily on growth. The unemployment rate poses a real challenge for the development of the country and its future influence.

Government Measures to Motivate or Restrict FDI

The Germany government is implementing mesures aimed at encouraging investments in the country:

- Financing by the European Union and/or by German federal entities;
- Aid aimed especially at the initial investment phase but also at the operational phase of the project.

Bilateral Investment Conventions Signed By Germany

Germany has signed many bilateral agreements.
To see the list of countries, click here.
To see the conventions, click here.

Procedures Relative to Foreign Investment

Freedom of Establishment

Yes. The German government and industry actively encourage foreign investment in Germany, and German laws provides foreign investors national treatment.

Acquisition of Holdings

Foreign investors may have a majority holding in the capital of a local company. The Foreign Economic Law contains restrictions on private direct investment for reasons of foreign policy, foreign exchange, national security, public order. Restrictions also concern armaments and cryptographic equipment.

Obligation to Declare

The agency for the promotion of foreign investment in the country gives information about the authorizations necessary for setting up.

Competent Organization For the Declaration

Federal Office of Economics and Export Control

Requests For Specific Authorizations

Investments have to be governed by the policies and the procedures which are specific to the sector.  For more information refer to the BAFA.

Investment Opportunities

Investment Aid Agency

Invest in Germany

Tenders, Projects and Public Procurement

Bundesausschreibungsblatt, Tenders official body (in German)
Tenders Info, Tenders in Germany
Ted - Tenders Electronic daily, Business opportunities in EU 27
DgMarket, Tenders Worldwide

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