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IncentivesInvestment Guide
Incentives
Grants for Investments
Investor facility set-up costs can be significantly reduced by cash incentives provided in the form of grants subject to defined conditions.
Cash Incentives Program: GRW
One major program directs the allocation of these cash grants, the "Joint Task for Improving Regional Economic Structures" (Gemeinschaftsaufgabe - GRW), throughout Germany.
The program is supervised by the Federal Ministry for Economic Affairs and Climate Action. Based on EU regulations and confirmation by the European Commission, it defines maximum possible incentive rates for all regions eligible for funding throughout Germany. These are published for each funding period in the form of the Ministry's "incentives map."
GRW Funding Rates
The actual incentive amount granted varies from region to region subject to economic indicators. Accordingly, the Federal Ministry for Economic Affairs and Climate Action has defined maximum possible incentive rates for all regions eligible for funding throughout Germany.
Regions with the highest incentive rates offer grants of up to 45 percent of eligible expenditures for small enterprises and grants of up to 25 percent for large enterprises in the eastern part of Germany.
Several regions within the western parts of Germany are also designated incentive regions. In some of these destricts, small enterprises can receive subsidy rates of up to 35 percent of eligible project costs.
The percentages describe the possible maximum incentive rate in a specific region in Germany published in the framework for the coordination of the "Joint Task for the Improvement of Regional Economic Structures (GRW)", confirmed by the European Commission. Each German federal state with assisted regions has individual regulations for allocating incentives within this framework. |
Calculating Possible Cash Incentives
Calculation basis for determining the possible amount of cash incentives receivable through the GRW program might be the actual investment costs (e.g. for buildings or machinery) or (assumed) wage costs for two subsequent years.
GRW program funds must be applied for before the investment project begins. The application process is administered by the relevant federal state governments.
Germany Trade & Invest's incentives experts are pleased to provide information concerning possible incentives rate calculations and application process steps in advance.
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