Why Germany is ripe for investment?

Why Germany is ripe for investment?
25 March 2018

As a leading global economy and the largest on the European continent, Germany offers a wealth of opportunity to foreign investors. Key to its attractiveness is its highly developed infrastructure, which in the domain of transport is particularly well structured and connected. This makes Germany an accessible gateway to the European Union and a prime one considering its strategic location in the center of the European continent.

Among the country’s many attributes is its technologically advanced status both compared to European peers and also internationally. Its ability to innovate is currently catching the eye of investors, with German start-ups enjoying a record year in 2017, with investment in newly-launched companies jumping 88 per cent to €4.3bn, according to the Financial Times.

Being a large country in size means it also offers a huge market base, as well as a sizeable labour force of technically skilled and highly educated human capital, with the majority being familiar with the global business language English. Due to the size of its home market in terms of population, Germany’s consumer goods sector is considered prime for investment. Tourism is another strong sector, with healthy demand, providing opportunities for investing in accommodation. Germany’s profile in education is also on the rise, meaning that opportunities exist to invest in a burgeoning sector.

Germany is so keen to attract investors that it treats local and foreign investors equally, providing an even playing field on which to compete. In terms of taxes, another significant advantage is the liberal and highly competitive system which makes it appealing. Other tax incentives exist to foreign investors; small and medium sized companies (SMEs), for example, are granted a tax subsidy to acquire buildings for a period of one year. Foreign SMES are also eligible for low interest rate loans to enable research and development while other grants are available for up to 50 percent of costs when investing in certain sectors. Other attractive features of the investment climate are access to all sectors for investment purposes and up to 100 percent ownership of businesses allowed. Added to all of this is Germany’s reputation for minimal corruption, a reassuring thought for potential investors.

If you would like to inquire about FFA Real estate’s projects in Germany, you can contact us on +961 1 960 777 or info@ffarealestate.com.

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