Highly Qualified and Motivated People

Investors will find highly motivated, qualified, and reliable people in Eastern Germany. German vocational schools work in close cooperation with businesses in order to tailor their programs to the specific needs of various industries.

Many eastern German workers are trained for more than one profession, making the labor pool one of the most flexible, well-trained, and educated in the world. Eighty-eight percent of the available workforce holds a "dual-system degree,"  which combines theoretical knowledge gained in vocational schools with practical training in the workplace. Furthermore, around 63,000 students successfully complete their degree in Eastern Germany each year.

Rising Productivity, Falling Costs

Productivity in Eastern Germany has more than doubled since 1991: each employee contributes more than EUR 50,000 to the overall GDP.

This level of productivity is significantly higher than in many eastern European countries. Leading US companies such as AMD, First Solar, and Allmetal widely cite their eastern German plants as being among their most productive. Eastern Germany offers further advantages for investors in terms of flexible worktime schedules, the availability of commercial real estate, inexpensive office rents and low transport costs.

Research & Development

The targeted development of several important clusters, universities, R&D facilities, and business cooperations has helped Eastern Germany become an attractive region for international investors.

In addition, there are numerous science clusters focusing on specific industries such as renewable energies, optics, biotechnology, chemical, electronics, nanotechnology, aerospace and automotive. The Eastern German states are home to such internationally renowned scientific and research institutions as the Leibniz Association, the Max-Planck-Association, and the Helmholtz Association. Twenty-three universities and 36 universities of applied sciences play a major role in training Eastern Germany's excellently qualified labor force.

World-Class Infrastructure

Investors will find modern logistics and communications networks in Eastern Germany. Since 1991, thousands of miles of freeways and railways have been constructed – thanks to significant public investment of over Euro 67 billion.

The telecommunications network has also benefited from considerable expansion. Germany boasts an excellent industrial infrastructure, with a large group of suppliers, maintenance services, and many developed industrial parks. The new Berlin Brandenburg International (BBI) airport and the Leipzig/Halle (LEJ) cargo airport further improve world-wide connections and offer vast potential for growth and new settlement.

Attractive Investment Incentives

Eastern Germany offers some of the most attractive federal and state investment support packages available in Europe. The many available incentive programs can help significantly reduce start-up costs.

These programs include below-market-rate loans, special bank guarantees, and cash grants to cover job-creation investments. Eastern Germany also provides an additional investment allowance program. Other programs also help cover the cost of employee training and research and development costs. Low corporate and income tax rates also make Germany an attractive tax location.

• Facts & Figures: Incentives in Germany [PDF, 754 KB]
• Cash Incentives for Investments