Germany Capital Berlin Currency Euro (EUR) Language German Population 82.42 million EU status member GDP 2006 $2.86 trillion Employment 92.9% Exports $1.133 billion f.o.b. (2006 est.) Imports $916.4 billion f.o.b. (2006 est.)

Setting up business Number of days to start business 9 Cost (% of income per capita) 24% Nonwage labor cost (% of salary) 19.3% Total tax rate (% profits) 57.1%

Germany

The rhine, a major commercial waterway

Germany offers potential investors one of the largest economies – and one of the largest markets – in Europe. In addition, it borders on the Netherlands, France, Belgium, Luxembourg, Switzerland, Austria, Czech republic, Poland and Denmark, and offers a central location with rapid access to almost anywhere in Europe. Germany’s sixteen states (Lander) offer a wide variety of opportunities and challenges to investors, from the international banking district of Frankfurt’s “Mainhattan” to the high-spec manufacturing for which the country is renowned, and the developing regions in the former East Germany.

Investment information

Over the past five years, Germany has attracted some 1321 FDI projects, of which 441 – over a third – were backed by US companies. ICT and business services were the biggest sectors for investment, reflecting German expertise in these areas, while on the business process side, manufacturing and sales and marketing were the activities that interested investors most. A number of reforms are under way in order to make the country even more attractive to potential investors. For example, proposed tax reforms will cut the average corporate tax burden from 38.7% to below 30% as of January 2008.

World-class infrastructure

An efficient and widespread road network is backed up by an extensive rail and river system. Germany has major ports at Hamburg and Wihelmshaven, but also has easy access to Europe’s busiest container port, Rotterdam in the Netherlands. With easy access to markets including France, the Netherlands and Belgium in the west, Italy and Austria to the south, and Poland and the Czech Republic to the east, and rail links all the way to Russia, Germany is not only a marketplace of 80 million in its own right, but acts as a logistical hub for a market of hundreds of millions across Europe. In addition, there is a fast, modern telecommunications infrastructure with high levels of internet and mobile connectivity.

Skills and technology

“Mainhattan”, Frankfurt financial district

Germany is renowned for the skills of its workers and for high-quality products and precision engineering. Auto firms such as BMW, Audi and Volkswagen, world-class software and telecommunication firms, and events such as the CeBIT ICT fair have given Germany a global reputation for technological advances in both the industrial and knowledge-based economies. Over half of Germany’s industrial output comes from sectors considered to be research-intensive – more than that in any other major industrialized nation. As a result, it is a popular choice for companies wishing to develop cutting-edge products. British electronics company Plastic Logic, for example, has recently announced that it is to build a E100 million manufacturing facility in Dresden to produce the world‘s first commercially viable polymer-based displays. Dresden beat both Singapore and New York as a possible location for the facility.

Investment incentives

A wide variety of investment incentives are available. In particular, the German government offers incentives for companies looking to invest in eastern Germany, which still has significantly higher unemployment than the west, despite massive investments from the government to renew the infrastructure. These include support for establishing production facilities, support with training and labor costs, loans at reduced interest rates and support for SMEs. Industry clusters have been formed in a variety of sectors, including aerospace, automotive, chemical, electronics, mechanical engineering and renewable energy.

Amcham Germany

With some 3,000 members, the American Chamber of Commerce in Germany is the largest American chamber of commerce in Europe, and has been operating for more than 100 years. AmCham Germany’s mission is to promote unrestricted competition, trade and investment between Germany and the United States. AmCham Germany’s membership includes 85% of all US investment in Germany, accounting for approximately 850,000 direct jobs and over E120 billion in investment.

 

Contact Information

American Chamber of Commerce in Germany
Rossmarkt 12
60311 Frankfurt am Main
Germany
Tel: +49 69 92 9104-20
E-mail: amcham@amcham.de
Website: www.amcham.de

 

Useful websites

Berlin.usembassy.gov	US Embassy
www.invest-in-germany.de	Official FDI Agency
www.iic.de	Investment promotion agency for former East German states
www.germany-info.de	General web portal in association with the German Embassy
www.destatsis.de_eng	Institute of Statistics
www.cometogermany.com	Tourist information

 

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