With its strategic location in the centre of Europe, political stability, and an infrastructure among the most developed in the EU, it’s easy to see why Germany is an FDI target. Its strong manufacturing base (mainly automotive and mechanical) brings almost 33% of GDP, and it has an international reputation for quality, and advanced mechanical / tech expertise. When you add Germany’s highly qualified and well-educated workforce, it’s easy to see why it ranks 22/190 for Ease of Doing Business.
FDIs in Germany are mostly owned by the Netherlands, Luxembourg, the US, Switzerland, and UK, who make up more than 60% of the total; though France, Italy, Austria, Japan, Spain and Belgium are also investing. FDI funding goes to finance / insurance, manufacturing / trade, information and communications, and real estate.
Germany’s strengths are a powerful and diversified industrial network, a reliable infrastructure, a favourable social climate, and a stable legal framework. Its weaknesses, though, are high tax rates (for both individuals and businesses) which will take some 220 hours per year to administer, and fairly rigid labour laws.
AUXADI can become your ideal investment partner in Germany. We offer a One Stop Shop value added Outsourcing services in the areas of Accounting and Reporting, Tax Compliance, Payroll Management and Representation services, among others.