Beyond Brexit - Expanding to Germany

British companies are increasing their investments in the German market. Over the past decade the number of annual projects has more than doubled. In 2022 a total of 170 investment projects worth over EUR 750 million were committed to the German market, marking the second highest level of all time. Only 2019 surpassed this level, which was driven by companies de-risking for the post-Brexit business environment.  Now the UK comes in third behind only the USA and Switzerland.

British companies are setting up legal entities within the EU to continue seamless operations from inside and outside the EU legal framework. More British small and medium enterprises (SMEs) are setting up in Germany than ever before. Large companies tend to already have multinational structures in place, but GTAI assists companies of all sizes.

Recent investments

The largest investment in 2022 was by retail giant Frasers Group, which is setting up a hub in Bitburg to serve central Europe and investing EUR 300 million and hiring 800 employees at the site. Additionally, Huboo, another company in the e-commerce space, set up in Leipzig. British company Mura Technology is joining forces with US-based Dow in the field of chemicals recycling at their site near Leipzig. Proton Motor Fuel Cell as well as digital printing and branding studio THEMPC both chose the Munich area for their investments.

For details on recent trends in foreign direct investment, visit GTAI's FDI Reports website. 

The German limited liability company (GmbH) is the most popular company form for a subsidiary. It requires a minimum share capital of EUR 25,000. The GmbH requires a German address and a local representative on site in Germany. The GmbH offers limited liability and high flexibility.

For more details on how to set up a GmbH in Germany, please refer to the company set up chapter in our Investment Guide to Germany.

New visa regulations

With the United Kingdom leaving the European Union, UK citizens no longer benefit from free movement to work and stay within the EU. This means that UK citizens moving to Germany will be subject to German national immigration rules. British citizens moving to Germany require a residence permit to live and work in Germany.

Visa exemption rules

British citizens do not require a visa to enter Germany for short-term stays (up to 90 days in any 180-day period), unless an economic ativity is being pursued. Specific professional activities are however exempted from a visa requirement. For example, business travelers and executives may be exempt from the visa requirement under certain conditions.

UK citizens can apply for a residence permit on site in Germany. Requirements depend on the person’s status as employed or self-employed. For more details please refer to our Investment Guide to Germany chapter on entry and residence. 

For UK-specific residency requirements please refer to the dedicated website published by the German Missions in the UK.

 

How can a foreign company set up business operations in Germany?

Do tax rates vary locally for companies in Germany?

What employment models are available in Germany?

Who needs a visa or a residence permit?

Does Germany offer grants for investments?

Does Germany offer grants for R&D activities?

How Octopus Energy Came to Germany

A Chat with CEO Andrew Mack

Fraser Hopper, Head of Operations | © Chattermill

Fraser Hopper, Head of Operations - Chattermill

Fraser Hopper, Head of Operations | © Chattermill

"Our experience setting up in Germany was very positive. We were able to utilise the extensive knowledge of Germany Trade and Invest as well as Berlin Partner to navigate legal, tax and immigration issues, which has been key in our successful launch. We have managed to attract both local and international talent to our office in Berlin, which acts as a Research & Development hub and has given us an advantage over thousands of other employers, as it is such an attractive location for highly sought-after technical talent in software development and machine learning.” (2021)

Dr. Elisabeth Grindel-Denby, Campus Director - Lancaster University Leipzig

Dr. Elisabeth Grindel-Denby, Campus Director | © Lancaster University Leipzig

"Lancaster University chose Leipzig because the city has everything needed to offer students a fantastic time whilst studying, as well as longer-term settlement opportunities. The support from GTAI was amazing – especially their timely responses, openness, reachability and the high quality of information and output . GTAI enabled us to quickly hit the ground running. Thank you very much!” (2021)

Frank P. Averdung, Chief Executive Officer - Oxford PV

Oxford PV factory Germany, Photo Frank Averdung (https://www.oxfordpv.com/frankaverdung) | © Oxford PV | GTAI

"We have been based in Brandenburg an der Havel since 2016 and we are thrilled with the progress we have made towards developing our perovskite solar cells, which will be critical for delivering affordable, clean energy. We are on track to reach our target of large-scale production in 2022, bringing the world one step closer to finding a much-needed solution to the climate change crisis” (2021)