Investing in Germany

Germany is becoming more and more attractive for international investors: this is shown by the sharply increased direct overseas investment. Many companies from Asia, the Middle East and North America enter the market, for example, through the purchase or participation of a company. The establishment of a company in Germany is also very attractive for foreign investors.

10 Reasons of choosing Germany

1. Leading economy - Germany is the engine of European economy. It is ranked 4th in the world. Investors also benefit from this. Another plus is the large German internal market and easy access to the growth markets in the European Union.
2. Global Player - Germany is the third largest export nation – only after China and the USA – after six years will be world export champion. 469-billion-euro foreign investment speaks for itself: Germany is a world-class business location.
3. High productivity - High performance and quality with reduced unit labour costs is the secret of Germany’s competitiveness. Social and labour market reforms contribute to the continuing improvement of the economic environment. In doing so, Germany ensures itself to become one the best cost-effective in Europe.
4. Excellent professionals – Germany has first class education system. 81 percent of Germans have received high school education or vocational training – well above the OECD average. Stable wages, fair social partners, loyal and motivated employees are the foundation of entrepreneurial success.
5. Innovative power - The pursuit of invention is embedded in the blood of Germans. They are the number one research location in Europe. The Federal Government of Germany finances R&D with billions of euro per year since research is our priority. That is the reason why Germany is now an international pioneer in the high-tech industry.
6. Extraordinary infrastructure - Located in the middle of Europe, Germany is the No.1 in logistics. The excellent energy and communication network coupled with a dense transport infrastructure ensure punctual deliveries and easy way towards success.
7. Attractive funding programmes - Germany offers attractive support programmes for investors. Various programmes are available at every stage of a settlement – ranging from direct grants to research funding to free training for professionals.
8. Competitive tax rates - Thanks to a far-reaching reform, the company tax in Germany has been substantially reduced and non-wage labour costs have been reduced as well. This gives it a strong lead over Japan, America, Canada, Italy and France and opens new doors for investors.
9. Safe investment environment - Having justice means getting right with it. As a modern state, Germany offers your company the necessary security. Contractual agreements are considered legally binding and intellectual property is strictly protected.
10. First-class quality of life - Germany is a modern, safe, cosmopolitan country with a high quality of life. Health care, sports and leisure activities, landscape and culture are just some of the reasons why Germany has become the home of more than seven million people.

Which legal form is right for my company?

The decision of choosing a legal form for the company will leave impact on personal, financial, fiscal and legal arrangements. The optimal legal form does not exist.

Every legal form has both advantages and disadvantages. Before determining the legal form, the following questions should be clarified:

• With how many people will the company be founded?
• Who should run the company?
• How much equity can be raised?
• Is the project risky?
• Should personal liability be limited?
• Should formalities be created as few as possible during the foundation phase?
• Should the company have a high credit rating?
• Does it have to be entered in the commercial register?
• Should the right of registration be made available in the commercial register?

An overview of company legal forms:

• Sole proprietory
• Civil law society (GbR)
• Registered merchant (e.K.)
• Open trading company (OHG)
• Limited partnership (KG)
• Limited Liability Company (GmbH) or Entrepreneurial society (limited liability)
• Stock company (AG)
• Limited partnership (GmbH & Co KG)

The choice of legal form is a decisive basis of the company. However, a form of business that is currently performing in favour of the company can become detrimental due to subsequent changes such as expansion, higher liability risk, etc. Therefore, it is necessary to check periodically whether the company's legal form still fits or if changes are required.

Real Estate Investment - An Attractive Capital Investment

As we know, real estate is one of the best and safest investments of our time. Whether you intend to ensure security for old age or increase your wealth, the property is the ideal tool. Our pension (e.g. if we check our pension decision) will only allow a fraction of what we need in old age for care free or for fulfilling our wishes. Therefore, it is more than necessary to find the right and safest way to give our happiness and well-being financial freedom and security.

Compared to all other investments, you benefit fourfold from the property:

      1. You benefit from your rental income every month.

      2. You get an above-average increase in value as a way of increasing the value of the property.

      3. You get high and permanent tax advantages

      4. You benefit from inflation.

In the real estate sector, there are many sectors where an investment is worthwhile.

The safest and most popular investment opportunities in the real estate sector are the existing property (new construction + old building), micro-apartment, refurbishment properties, the multi-family house and the listed property.

Excellent locations, quality objects with high level of security and return on investment

Small rented apartments in attractive locations (centre) are no longer very popular and the demand for housing is growing continuously. In order to ensure a good rentability, small apartments with a size of 40 - 70 square meters are sought, these apartments offer you a high rental yield and are suitable for two people as well as for single households.

Selected regions with a high supply of jobs sustain a high demand for attractive apartments and a solid increase in value is to be expected.

Experienced investors therefore invest in an economically strong region, as quiet as possible but close to the city centre with good infrastructure. Short distances to public transport, universities, schools, sports facilities, parks, shopping centres, the inhabitants of these neighbourhood appreciate these advantages very much.