FDI in figures

Germany is an attractive country for direct foreign investment. However, the country is likely to receive less FDI in the coming years because of the global financial crisis. 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 individuals and corporations).
Even if the financial crisis affected the country and more particularly exports, Germany still remains one of the most attractive countries in Europe, in terms of investments accomplished.

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

Acquisition of holdings

Foreign investors may have a majority holding in the capital of a local company.

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.

Finding assistance for further information

Investment aid agency

Invest in Germany

Other useful resources