Investment projects in Germany can receive support through a number of public funding instruments. The incentives help investors meet their immediate capital needs by providing non-repayable grants at the beginning of an investment project when capital expenditures are high compared to later investment phases. Interest-reduced loans and public guarantees complement the public financial support.
Investment grants are predominantly offered through the “Joint Task for Improving Regional Economic Structures” (GRW). The maximum level of funding allowed varies within Germany. Large enterprises can be reimbursed for up to 20 percent of the eligible investment costs, medium-sized enterprises for up to 30 percent, and small enterprises for up to 40 percent. The actual amount granted depends on factors such as the location of the investment project, company size, core activities, investment volume, and the number of new jobs created.
Enterprises in Germany can apply additionally for further funding programs:
Incentives in Germany
|Working Capital||Research & Development||Specific Purposes||Personnel|
|Financing supported by any of the following public funding instruments (combimations of instruments usually possible)|
|Public funding instruments:|
|Grants||Loars||Guarantees||Equity Capital||Mezzanine Capital|
There is a particular focus on assisting research and development activities, usually in the form of non-repayable grants. Qualification and training support as well as wage subsidies are offered when hiring personnel.
All of the public funding instruments can be used for all of the investment activities. Another key benefit lies in the ability to combine the funding instruments. This means that support does not stop at one point, but is available in all business phases.