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Top Reasons To Explore Business Opportunities in Germany

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Are you in the market for new business opportunities in Europe? Then look no further than Germany. It is the go-to country in the European Union. While it’s challenged by the pandemic, like it’s neighbours, Germany is still forecasted to grow it’s Gross Domestic Product (GDP) by 4.7% in 2021 and 2.7% in 2022.

There are also many other reasons why Germany is attractive to get a foothold in Europe and a great place to invest or start a business.

Why Germany Attracts Business

This article reviews a few reasons Germany comes out on top as a business-friendly country.

A strong economy and start-up culture

In 2019 Germany’s GDP exceeded 3.8 trillion euros so its no surprise it ranks as the fourth-largest economy in the world. A strong economy is a good reason to set up a new business.

Cities such as Berlin, Hamburg, Frankfurt, and Munich are known as vital start-up hubs that encourage new businesses who provide creative services and innovative products that are unique to the rest of the world.

The government supplies professional information centers in each region so a start-up can acquire the necessary details to complete the requirements and establish a company smoothly, opening it up for international growth.

Skilled and dynamic workforce

Germany’s diverse and highly skilled workforce showcases creativity and innovation, making it the ideal place in the European Union to start or invest in a business.

Compared to other European countries, Germany has the highest purchasing power, so new ideas can easily find an accepting market.

The country inherently has a set of exceptionally skilled citizens. The standard of education is high in the country, with local universities giving preference to expressing creative ideas and seeing them come to fruition. The government’s laws permit recruitment from neighboring European countries.

The relaxed visa laws make it a relatively smooth process to hire workers from overseas. Companies established in Germany can subsidize foreign workers in exchange for a facilitated and quicker residency process. Plus a reliable health insurance Germany offers to protect employees.

Public and private health insurance

Gesetzliche Krankenversicherung or statutory government health insurance is provided for workers with a total annual income of 60,750 Euros. This fund offers stable protection for employees and new businesses.

Over this figure, anyone taking permanent residence can choose from various health insurance options, like a public or private insurance provider (if eligible). Still, it is required for all employers to pay for any accident insurance while on the job. This serves as a good incentive for workers to make them feel that they count.

Secure intellectual property laws

Germany is hailed for its innovation, so if your business plans to manufacture a unique product, rest assured you will be well protected.

Privacy, protection and Intellectual property is taken very seriously, with patent, copyright, and trademark laws that are devised to safeguard businesses and their resources. The German law also prohibits the rival company to create false statements about your product to captivate the market for their benefit.

Commitment To research and development

Germany has been known at the forefront in highlighting the importance of scientific research and data to support innovative ideas. The country is proficient in interpreting research into more realistic applications.

Engine advancement, manufacturing, software development, and pharmaceutical research are adequately supported by the government and the private sector, which can lead to significant contributions to society and the rest of the world.


Germany presents an array of incentive programs, funding for research and development, and public grant programs that can be applied to different spectrums of business. The cost of establishing a new facility may be decreased through cash incentives provided by grants.

Companies may be reimbursed with close to 20% of their initial investment costs, and small companies may get double the amount. Labor incentive programs are provided by the German Federal Employment Agency to companies who are seeking to broaden their workforce.

Easy trade

There is an enormous consumer spending power in Germany. In fact, it’s the largest consumer market in the European Union and the third-largest exporter of agriculture and consumer-related products worldwide.

Germany’s geographical location finds itself right in the heart of Europe, which makes it a quintessential region to expand a business to other neighboring countries such as France, Switzerland, Austria, and Italy. Its state-of-the-art transport system allows skilled workers to enter the country with ease.

Germany is a business-friendly country because of its accomodating trade agreements with the European Union, and key markets across the world, such as the United States, Japan, China, France, and the Netherlands.


The German government has a reputation for complicated tax laws, but it has taken positive steps to simplify them.

Businesses will need to complete 9 tax payments and spend close to 200 hours organizing and completing the process, but the numerous tax incentives are well worth it. 19% is the standard Value Added Tax (VAT) rate, and corporate income tax is 15%.

A solidarity surcharge of 5.5% is required to be paid by any person or legal individual in debt of corporate or income tax.

In Closing

Germany provides an attractive market for business owners and investors. The country has a highly skilled workforce, solid healthcare and insurance system, and laws to protect companies against infringement.

The importance given to research and development, combined with its robust infrastructure, has enabled Germany to stand on its own compared to the rest of Europe and holds a key position in the global market.

With the proper groundwork, patience, and intuitiveness, it can be a good land of opportunity to start or expand a business.