AGN Live Country Guides

Doing Business in Germany

Published in June 2016

The Federal Republic of Germany is the largest economy in Europe and fourth largest in the world. With 137,847 square miles, bordering with 10 countries, Germany is the most populated member estate in the European Union, with 81.1 million inhabitants, and the second most popular human migration destination.
 
In 2014 the country registered $3.87Tof GDP, and the annual growth during 2014 ascended to 1.6%. In 2016 it is expected that domestic consumption, bolstered by low energy prices and a weak euro, will drive a GDP growth again.
 
Germany is categorized by the World Bank as High Income, with a GDP per capita of $47,600 and a population that is highly demanding on new products and services.
 
Leading world car exports ($163B, 12%), they are the 3rd largest exporter in the world, producing a positive trade balance. Germany is also the 3rd largest importer in the world, buying crude petroleum and cars amongst other products.
 
Major reasons to do business in Germany:

  • The engine of the economy in Europe, with higher exports rate in the region
  • Huge domestic market, with over 81 million people with high income, the consumer market offers good opportunities to foreign companies
  • Efficiency – the level of productivity is the highest in the world, offering a cost-effective  production locations, and highly developed infrastructures
  • Labour force highly skilled, 81% of the population having been trained to university entrance level
  • Stable investor friendly market
  • SMEs friendly – 85% of the companies are SMEs that are highly specialized in their market
  • Ease of doing business (World Bank): 15

 

Relationships with international businesses continue. In order to avoid the 'redundancy' risk of the use of static data about various countries, this portal incorporates various live data feeds from:
•                 The Organisation for Economic Cooperation and Development (OECD)
•                 The World Bank
•                 The observatory of Economic Complexity
The intention is to provide access to live information extracted from the regularly refreshed databases maintained by these organisations.

 

 

Use the navigations buttons below to access to more live data:
Inflation, Development indicators, Exports, Trade Balance, and more.

OECD Country Comparison Portal

The window below is a direct feed of regularly updated information from the OECD. It provides data concerning everything from GDP growth, fiscal balance, investment, and unemployment rates to consumption, import volume and export volume. The window allows comparisons between several countries of the OECD average for these factors.

Inflation (CPI)

Total, Annual growth rate (%)

World Bank Development Indicators

Exports

This graph is taken from The Observatory of Economic Complexity (OEC). Products, represented by rectangles, are drawn from the 775 individual product classes found in the Standardized International Trade Code.

This graph shows volumes of goods exported from Germany.

Imports

This graph is taken from The Observatory of Economic Complexity (OEC). Products, represented by rectangles, are drawn from the 775 individual product classes found in the Standardized International Trade Code.

This graph shows volumes of goods imported into Germany.

Trade Balance

This graph is taken from The Observatory of Economic Complexity (OEC).

This graph illustrates the subsequent trade balance of exports and imports to and from Germany.

Destinations

This graph is taken from The Observatory of Economic Complexity (OEC).

This graph shows the destinations of goods and services by country.

 

Business Opportunities in Europe:

NOWS THE TIME TO REVIEW YOUR FOREIGN CURRENCY LOAN     (July 2017)

Foreign Currency Loans became very popular a few years ago. Depending on the currency they potentially offered consumers and companies low interest rates, at attractive exchange rates. But recent experience has shown they can become a problem where they have been sold to consumers and small firms that may not be familiar with the potential pitfalls of such sudden changes in exchange rates. Many legacy loans are still active and still causing problems.

There are professional ways to hand foreign currency loans through Managed Currency Mortgages. A successful currency manager will move the borrower's debt into a currency which subsequently falls in value against the base currency.

For more information about how to hand foreign currency loans through Managed Currency Mortgages, contact an AGN member that can help you.


IRELAND OFFERS GREAT R&D TAX RELIEF     (March 2017)

The Knowledge Development Box in Ireland – 6.25% Corporate Tax Rate.    

The Knowledge Development Box (KDB) in Ireland provides for a 6.25% tax rate on profits derived from patented or other protected inventions and certain copyright software.

For more information about how to take advantage of this opportunity, contact the AGN firm best prepared to help you.


Air transport opportunity in Greece     (November 2016)

Calling businesses involved in airport and waterdrome operation and associated services, seaplane servicing, air tourism services, scheduled flights, charter operation and air freight.   

The Greek government is set to introduce a huge expansion in its air travel infrastructure through the development of a series of new Waterdromes in the Greek territory. The plan is for 60 new facilities by 2025 which will be served by a 20 seaplanes fleet. The estimated investment requirement is €43,83m.

For more information about how you or your client might take advantage of this opportunity contact the AGN firm best prepared to help you.


TAX PUBLICATIONS:

The AGN Europe Taxation Task Force produces annual Tax Brochures. These contain tables that show the main aspects of a tax that are easily and quickly compared between the European Countries participating in the surveys. There is also a graph comparing the most important data, and an article with an overview of the European situation in 2016. These brochures are available in electronic format and have been designed so you can easily print them in-house if you prefer. Members and clients refer to the brochures as useful overview of key Tax data in Europe.

Corporate Tax 2016

European Countries Comparison


The 2016 corporate tax survey covers most European countries (including Israel, Turkey and Ukraine) and aims to calculate the effective corporate tax payable using a model profit and loss account for a standard trading company with pre-tax accounting profit of €930,000.00.  It also calculates the dividend receivable by shareholders of a company resident in a non-treaty (tax haven) country. Additionally, the percentage of accounting profit received as dividend is shown under different assumptions. 

read full publication
 
Gift & Inheritance 2016

European Countries Comparison


Inheritance and Gift taxes are often overlooked when deciding which jurisdiction to relocate to, so those individuals who do not want a considerable part of their savings to be left to the State must consider the impact of these taxes and any related tax planning opportunities that may arise. 

The objective of the survey was to compare levels of inheritance tax payable based on a married individual who died without a valid Will on January 1, 2016, leaving a surviving spouse and two children. The assets owned at death were: a house worth €600.000, cash of €1.000.000, quoted company shares valued at €300.000 and unquoted company shares valued at €700.000 (total asset value €2.600.000).

read full publication
 
Parent Companies 2017

European Countries Comparison


Parent companies are used to hold participation in group companies, to collect dividends and make capital gains from the sale of subsidiaries in the most tax efficient way. The objective of the survey of parent company jurisdictions is to compare and contrast the conditions for the exemption of dividends and capital gains and to try to identify the most useful and flexible jurisdiction to place the parent company. The tax calculations are based on a standard profit and loss account and balance sheet with subsidiaries in France, Germany, USA and Switzerland.

read full publication
 
Salaries & Social Security Tax 2016

European Countries Comparison


The objective of the survey is to establish how much of a self employed’s gross salary is left after income tax and social security charges. In addition, the survey considers what deductions the self employed person is allowed to make when calculating taxable profits. The survey is based on a married individual with two children, annual gross salary of €130,000, a new car costing €40,000, a new computer costing €2,000, travel expenses of €10,000 and other business expenses of €8,000, leaving a net turnover of €100,000.
read full publication
 

Self Employed Tax 2017

European Countries Comparison


The objective of the self employed survey is to establish how much of a self employed person’s gross salary is left after income tax and social security charges. In addition, the survey considers what deductions the self employed person is allowed to make when calculating taxable profits. The survey is based on a married individual with two children, annual gross turnover of €130,000, a new car costing €40,000, a new computer costing €2,000, travel expenses of €10,000 and other business expenses of €8,000 leaving net turnover of €100,000.
read full publication
 
VAT 2017

European Countries Comparison


Not only is it a condition of membership of the EU for all member states to have VAT but also for its main characteristics to be uniformly implemented. This should make cross border trading easy but in practice does not as there are numerous local variations which can lead to costly errors, penalties and high compliance costs.

The objective of the AGN Europe VAT survey is to collate data about the main characteristics of VAT as it is implemented in the European Region jurisdictions and to try to highlight the key differences between them. It also acts as the basis for the VAT Survey Brochure, which is a useful reference source in respect of some of the main components of the VAT system.
read full publication
 
Online tax surveys are also created every year which contain some additional data to the brochures; if you want to see the latest version of these, please contact Marlijn Lawson or click here.

AGN News:


November 2017

AGN Member Duignan Carthy O'Neill Shares Budget 2018


Dublin, Ireland member Duignan Carthy O'Neill has produced a summary of all the main Irish Budget 2018 details and changes. See the Budget 2018 - Tax Facts & Figures flyer and learn how this new budget affects you and your business.

read full article to learn more
 

October 2017

ICT-Security Conference 2017 in Villach, Austria


AGN Austrian firm Multicont was asked to attend the ICT-Security Conference in Villach, Austria by the Austrian Armed Forces and the Centre for Risk-Crisis Management (ZKR).

read full article to learn more
 

AGN Firms in the country


Germany
Becker Buttner Held
Pfeuferstrasse 7
81373 Munich
Phone: (+49 89) 23 11 64 0
EMail: muenchen@bbh-muenchen.de
BECKER BUTTNER HELD - Berlin
Magazinstrasse 15-16
10179 Berlin
Phone: (+49 30) 61 12 84 00
EMail: berlin@bbh-online.de
BECKER BUTTNER HELD - Koeln
KAP am Südkai
Agrippinawerft 30
50678 Cologne
Phone: (+49 221) 65 02 50
EMail: koeln@bbh-koeln.de
BECKER BUTTNER HELD - Munich

Hamburg
Phone:
EMail:
BECKER BUTTNER HELD - Stuttgart
Industriestrasse 3
70565 Stuttgart
Phone: (+49 711) 72 24 70
EMail: stuttgart@bbh-stuttgart.de
Bohn Dollenmayer Dambeck
Garmischer Strasse 8-10
80339 Munich
Phone: (+49 89) 500 37 50
EMail: kanzlei@bohn-partner.de
Frankus | Wirtschaftsprüfer · Steuerberater · Rechtsanwälte
Steinstrasse 27
40210 Düsseldorf
Phone: (+49 211) 86 29 00 0
EMail: postmaster@frankus.com
Invra Teuhand AG
Untere Weidenstrasse 5
81543 Munich
Phone: (+49 89) 20 60 31 29-0
EMail: muenchen@invra.de
INVRA TREUHAND AG - Berlin
Magazinstrasse 15-16
10179 Berlin
Phone: (+49 30) 80 09 2986
EMail: berlin@invra.de
INVRA TREUHAND AG - Köln
KAP am Südkai
Agrippinawerft 30
50678 Koln
Phone: (+49 221) 65 03 68 30
EMail: koeln@invra.de
INVRA TREUHAND AG - Munich

81543 Hamburg
Phone: (+49 89) 20 60 31 29-0
EMail:
INVRA TREUHAND AG - Stuttgart
Industriestrasse 3
70565 Stuttgart
Phone: (+49 711) 78 28 440
EMail: stuttgart@invra.de
MTG Group
Erlenstegenstrasse 7
90491 NUREMBERG
Phone: (+49 911) 95 05 501 0
EMail: info@mtg-group.de
MTG GROUP - Regensburg
Merianweg 3a
93051 Regensburg
Phone: (+49 941) 20 86 45 0
EMail: info@mtg-group.de
MTG GROUP - Ingolstadt
Manchinger Strasse 132
85053 Ingolstadt
Phone: (+49 841) 96 508 0
EMail: info@mtg-group.de
MTG GROUP - Keilhem
Lugwigstrasse 4
93309 Kelheim
Phone: (+49 911) 95055010
EMail: info@mtg-group.de
MTG GROUP - Straubing
Stadtgraben 29
94319 Straubing
Phone: (+49 9421) 83 81 0
EMail: info@mtg-group.de
Schaffer & Partner Audit & Tax and Schaffer & Partner Legal
Aeussere Sulzbacher Str. 118
90491 Nuremberg
Phone: (+49 911) 95 99 80
EMail: nue@schaffer-partner.de
SH+C
SH+C Schwarz Hempe & Collegen GmbH
Linprunstrasse 49
80335 Munich
Phone: (+49 89) 547 090 0
EMail: info@shc.de
SMC Revisions und Treuhand GmbH
WestendGate
Hamburger Allee 2-4
60486 Frankfurt
Phone: (+49 69) 27 11 81 50
EMail: mail@smp-frankfurt.de
Stolze - Dr. Diers - Beermann GmbH
Neubruckenstrasse 5
48429 Emsdetten
Phone: +49 (0)5971 808 226
EMail: beermann@stodibe.de
Stolze - Dr. Diers - Beermann GmbH
Timmermanufer 142 Rheine
48429 Rheine
Phone: +49 (0)5971 808 226
EMail: beermann@stodibe.de
WIRA AG
Heidenkampsweg 51
20097 Hamburg
Phone: (+49 40) 410 988 394
EMail: ham@wira-audit.org
WIRA AG
Linprunstrasse 49
80335 Munich
Phone: (+49 89) 547 090 500
EMail: muc@wira-audit.org
WIRA AG
Aeussere Sulzbacher Str. 118
90491 Nuremberg
Phone: (+49 911) 959 98 260
EMail: nue@wira-audit.org
WIRA AG
Schulze Delitzsch-Strasse 28
70565 Stuttgart
Phone: (+49 711) 489 31 300
EMail: str@wira-audit.org
Wirtschaftstreuhand Group
Wirtschaftstreuhand GmbH
Schulze-Delitzsch-Strasse 28
70565 Stuttgart
(P.O.Box 801154 70511 Stuttgart)
Phone: (+49 711) 48 93 10
EMail: info@wirtschaftstreuhand.de
WIRTSCHAFTSTREUHAND GROUP - Meissen
Schenk Wirtschaftstreuhand GmbH
Elbestrasse 1
01622 Meißen
Phone: (+49 3521) 41 28 0
EMail: info@schenk-wirtschaftstreuhand-meissen.de
WIRTSCHAFTSTREUHAND GROUP - Munich
Prannerstrasse 6
80333 Munich
Phone: (+49 89) 52 03 37 0
EMail: info-muc@wirtschaftstreuhand.de
WIRTSCHAFTSTREUHAND GROUP - Schorndorf
Rehhaldenweg 60
73614 Schorndorf
Phone: (+49 7181) 99 02 80
EMail: info-sdf@wirtschaftstreuhand.de
WLP GmbH Wirtschaftsprüfungsgesellschaft Steuerberatungsgesellschaft
Heidenkampsweg 51
20097 Hamburg
Phone: (+49 40) 41 09 88 30
EMail: wlp@wlp-gmbh.de
WSR Cintinus GmbH
Koenigstraße 8
D-01097 Dresden
Phone: (+ 49 351) 56 39 39 60
EMail: Peter.Gassen@cintinus.com
Contact Partner: Peter Gassen