Germany has an open and welcoming attitude towards foreign direct investment (FDI). The legal framework for FDI in Germany favors the principle of freedom of foreign trade and payment transactions as laid down in the Foreign Trade and Payments Act (Außenwirtschaftsgesetz) and the Foreign Trade and Payments Ordinance (Außenwirtschaftsverordnung).
The Federal Ministry for Economic Affairs and Energy (BMWi) may however review acquisitions of German domestic companies. In general, the cross-sector...

Germany offers numerous incentives for foreign investors. Find out how your investment project can benefit from public funding.

Germany plans to extend its Coronavirus Kurzarbeit (“Short-Time Work”) scheme through to the end of 2021 to maintain jobs and lay the way for economic recovery.

In contrast to some other industrialized countries, the core social security in Germany is financed collectively by means of a process of redistribution. The current costs (for pensioners, sick people or those in need of nursing care, and unemployed people) are paid directly from contributions by employees and employers.
Social security contributions are made up of:
Health insurance
Nursing care insurance
Pension insurance
Unemployment insurance
Accident insurance
Generally speaking, social security...

Companies with tax status in Germany and performing R&D activities are eligible for a tax credit of up to EUR 500,000 annually.

Companies must add value-added tax (VAT) to their prices. Thus, VAT is only paid by the end user of a product or service. Companies transfer the VAT received to the tax authorities on a monthly, quarterly, or annual basis. The frequency generally depends on the level of company turnover.
The normal VAT rate of 19 percent is just below the European average. A reduced rate of 7 percent applies to certain consumer goods and everyday services (such as food, newspapers, local public transport, and hotel...