Invest In Germany

Invest in Germany

You are looking to invest in Germany? BDG is happy to support you in your investment plans as well. We have put together a brief overview of general benefits, risk and advices to in relation to investing in Germany. Contact us for specific advice and support!


There is a growing and strongly held belief among many foreign enterprises that investing in Germany offers the advantages of both location and world class innovation. Therefore, it’s no surprise that foreign businesses are looking to increase their investments in Germany. Figures prove that Germany is a significant market for investors. In recent years, investors deployed more capital in Germany than in the previous year, and foreign investors accounted for over one third of total turnover.

Driven by its strong industrialization, Germany has become the largest economy in Europe and the fourth largest economy in the world. A global powerhouse of technological advancement, the country is a leading innovator and the second largest exporter in the world after China. In addition to this, housing 37 of the world’s 500 largest listed companies backed by a very stable economy makes the country a lucrative target for international investors.

Germany’s membership of the European Union has also enabled the country to become even more competitive, not only against other industrialized countries, but also alongside all other members of the Eurozone. The multiple economic benefits of inclusion in the European Union are another key attraction for those looking to invest in Germany.

From the intelligently structured educational system, which produces a supremely skilled and dedicated workforce, to the business friendly tax policies, Germany’s business infrastructure provides much peace of mind for international investors. Germany’s workforce is both highly educated and motivated, as shown by the minimal strike activity and higher education graduation figures.

Germany’s unified tax code and logical, easy to adopt business laws also make Germany a very appealing investment prospect for foreign businesses. The tax laws are so investment-friendly for a good reason – the tax policy is geared towards the promotion of investment and to improving Germany’s competitiveness in the global economy.

The major locations of investment are collectively known as the “Big Six”: Berlin, Cologne, Frankfurt, Hamburg, Düsseldorf and Munich. These cities account for almost 60 per cent of Germany’s total annual investment volume. For any business considering investing in Germany, long-term stability and the ability to plan ahead are important and attractive factors. Germany has a very stable state infrastructure that functions efficiently; this ensures that social order is maintained and makes any region across the country a steady and rewarding target for foreign investment.


Germany’s distinctive business culture and legal framework mean that businesses are well advised to seek expert help when starting their business activities in Germany. A successful international investment requires an understanding of the economic profile as well as the legal and tax framework of the investment country.

BDG’s global business contacts and access to decision makers mean that we have a strong track record of helping many companies to successfully enter the German market and establish a lasting commercial presence.

In addition to providing access to comprehensive advice on Germany’s economic and business laws, we help our clients to overcome language barriers and fully understand the business culture and necessary administrative processes.

By enabling networking opportunities and providing contacts to decision makers, BDG also acts as intermediary between national and international investment agencies. Our long-standing experience in the German market and specialist expertise enables us to fully answer questions from investors and respond appropriately to their interests and needs.


Having a balanced view of risks versus benefits is essential for any investor. Whilst Germany has a very strong economy, it would be unwise not to weigh up the challenges that the country may also face. For instance, the country’s membership in the European Union, whilst an enormous advantage over the years, has caused some recent problems in the wake of the European sovereign debt crisis.

European Union bailouts have high costs, especially if more countries face problems in the future, and international investors should carefully consider this risk before investing in Germany. The potentially ‘contagious’ nature of the failing economies of countries in the European Union, where one country’s inability to repay its debt could cause other neighbours in the EU to follow suit. Inevitably, this would have a negative effect on Germany’s economy and balance sheet.

In addition, the issue of demographics is one to bear in mind. Whilst Germany is the 16th most populous country in the world, the country’s population is characterized by zero or declining growth, with a total fertility rate has been rated of around 1.4. Just like many other thriving countries in the West, where higher standards of living and medical advancements are causing people live longer, Germany’s aging population will inevitably place an increasing burden on its social welfare system.

Fortunately, Germany has one of the world’s highest levels of education, technological development, and economic productivity. Its rock-solid infrastructure of the educational and social welfare system, the enduring strong national work ethic and the continuing focus on excellence in industry and innovation mean that Germany is well placed to withstand any adverse conditions – whatever fortunes may affect its neighbours in the European Union. Furthermore, the ingrained national character trait for planning and preparing well in advance will always help the German economy to triumph over periods of volatility.

Reach out for more information about Germany. We are happy to assist.