Grants for Investments

Investor production facility set-up costs can be significantly reduced by cash incentives provided in the form of grants.

There is one major program directing the allocation of these cash grants, the "Joint Task for Improving Regional Economic Structures" (Gemeinschaftsaufgabe, GRW), throughout Germany.

The program is issued by the Federal Ministry for Economic Affairs and Energy. It defines maximum possible incentives rates for all regions eligible for funding throughout Germany which are published for each funding period in form of the Ministry's so called "incentives map."

The actual incentives amount granted varies from region to region subject to economic development level. Accordingly, the Federal Ministry for Economic Affairs and Energy has defined maximum possible incentives rates for all regions eligible for funding throughout Germany.

Regions with the highest incentives rates offer grants of up to 30 percent of eligible expenditures for small enterprises. Small enterprises situated in the border regions to Poland may receive up to 40 percent funding. These higher incentive rate regions are mainly situated in Eastern Germany.

Several regions within the western parts of Germany are also designated incentives regions. In these regions, small enterprises can receive subsidy rates of between 20 to 30 percent of eligible project costs.

20210302_FF_Incentives_RZ

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.