AGN Live Country Guides

Doing Business in Germany

Published in February 2018

The Federal Republic of Germany is the largest economy in Europe and fifth largest in the world. With 137,847 square miles, bordering with 9 countries, Germany is the most populated member estate in the European Union, with 80.6 million inhabitants, and the second most popular human migration destination.
 
In 2017 the country registered $4.15Tof GDP, and the annual growth during 2017 ascended to 2.1%. In 2018 it is expected that domestic consumption, bolstered by low energy prices and a weak euro, and exports will drive a GDP growth again.
 
Germany is categorized by the World Bank as High Income, with a GDP per capita of $50,200 and a population that is highly demanding on new products and services.
 
Leading world car exports ($150B, 11%), 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 around 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): 20

 

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:

THE ‘MACRON EFFECT’ MAKING FRANCE AN ATTRACTIVE PLACE FOR FOREIGN DIRECT INVESTMENT     (May 2018)

Emmanuel Macron took office as the President of France on 14 May 2017, becoming the youngest president in French history and youngest head of state since Napoleon. His victory was based on a manifesto of significant social and economic reform. As his program has started to take effect, Macron has been hailed as having re-launched the French economy as an attractive destination for foreign direct investment – the so called “Macron Effect”.

find the firm best prepared to serve you

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.


TAX PUBLICATIONS:


The AGN European Region produces annual tax brochures that compare taxes among European countries. Interesting comparisons from year to year give insight into trends.

These surveys are available by report type and year.

Learn more
 

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. 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 2017

European Countries Comparison


The 2017 corporate tax survey covers most European countries (including Turkey) 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 2017

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, 2017, 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 2017

European Countries Comparison


The objective of the survey is to establish how much of an employee’s gross salary is left after income tax and social security charges. It also calculates the employer’s social charges allowing comparison of the cost of employment to an employer. The survey is based on a married individual with two children, annual gross salary of €100,000, a company car costing €40,000 when new, and paying annual mortgage interest of €7,500.
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:

October 2018

AGN welcomes new member firm in Ukraine: ACTIV-AUDIT


Audit company "ACTIVE-AUDIT" was founded in 2000 in Kiev (Ukraine) and for more than 18 years has been providing various types of audit services, starting with the audit of financial statements of enterprises and banks, ending with the audit of the information security management system.

learn more
 
September 2018

AGN EMEA board welcomes new UK director


Martin Gibbs, Managing Partner of Coventry (UK) based member firm Dafferns LLP has been co-opted by the AGN EMEA regional Board.  

learn more
 

AGN Firms in the country


Germany
Becker Buttner Held
Pfeuferstraße 7
81373 München
Time Zone: GMT +1
Phone: +49 (0)361 644 74 49-0
EMail: bbh@bbh-online.de
BECKER BUTTNER HELD - Berlin
Magazinstrasse 15-16
10179 Berlin
Time Zone: GMT +1
Phone: +49 (0)30 611 28 40-0
EMail: bbh@bbh-online.de
BECKER BUTTNER HELD - Erfurt
Regierungsstraße 64
9908 Erfurt
Time Zone: GMT+1
Phone: +49 (0)361 644 74 49-0
EMail: bbh@bbh-online.de
BECKER BUTTNER HELD - Hamburg
Kaiser-Wilhelm-Straße 93
2035 Hamburg
Time Zone:
Phone: +49 (0)40 341 069-0
EMail: bbh@bbh-online.de
BECKER BUTTNER HELD - Koeln
KAP am Südkai
Agrippinawerft 26-30
50678 Koeln
Time Zone: GMT +1
Phone: +49 (0)221 650 25-0
EMail: bbh@bbh-online.de
BECKER BUTTNER HELD - Stuttgart
Industriestrasse 3
70565 Stuttgart
Time Zone: GMT +1
Phone: +49 (0)711 722 47-0
EMail: bbh@bbh-online.de
Bohn Dollenmayer Dambeck
Garmischer Strasse 8-10
80339 Munich
Time Zone: GMT +1
Phone: (+49 89) 500 37 50
EMail: kanzlei@bohn-partner.de
Frankus | Wirtschaftsprüfer · Steuerberater · Rechtsanwälte
Steinstrasse 27
40210 Düsseldorf
Time Zone: GMT +1
Phone: (+49 211) 86 29 00 0
EMail: postmaster@frankus.com
Invra Teuhand AG
Untere Weidenstrasse 5
81543 Munich
Time Zone: GMT +1
Phone: (+49 89) 20 60 31 29-0
EMail: muenchen@invra.de
INVRA TREUHAND AG - Berlin
Magazinstrasse 15-16
10179 Berlin
Time Zone: GMT +1
Phone: (+49 30) 80 09 2986
EMail: berlin@invra.de
INVRA TREUHAND AG - Köln
KAP am Südkai
Agrippinawerft 30
50678 Koln
Time Zone:
Phone: (+49 221) 65 03 68 30
EMail: koeln@invra.de
INVRA TREUHAND AG - Munich

81543 Hamburg
Time Zone:
Phone: (+49 89) 20 60 31 29-0
EMail:
INVRA TREUHAND AG - Stuttgart
Industriestrasse 3
70565 Stuttgart
Time Zone: GMT +1
Phone: (+49 711) 78 28 440
EMail: stuttgart@invra.de
MTG Group
Erlenstegenstrasse 7
90491 NUREMBERG
Time Zone: GMT +1
Phone: (+49 911) 95 05 501 0
EMail: info@mtg-group.de
MTG GROUP - Regensburg
Merianweg 3a
93051 Regensburg
Time Zone: GMT +1
Phone: (+49 941) 20 86 45 0
EMail: info@mtg-group.de
MTG GROUP - Ingolstadt
Manchinger Strasse 132
85053 Ingolstadt
Time Zone: GMT +1
Phone: (+49 841) 96 508 0
EMail: info@mtg-group.de
MTG GROUP - Keilhem
Lugwigstrasse 4
93309 Kelheim
Time Zone: GMT +1
Phone: (+49 911) 95055010
EMail: info@mtg-group.de
MTG GROUP - Straubing
Stadtgraben 29
94319 Straubing
Time Zone: GMT +1
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
Time Zone: GMT +1
Phone: (+49 911) 95 99 80
EMail: nue@schaffer-partner.de
SH+C GmbH WPG StBG
Linprunstrasse 49
80335 Munich
Time Zone: GMT +1
Phone: (+49 89) 547 090 0
EMail: info@shc.de
SMC Revisions und Treuhand GmbH
WestendGate
Hamburger Allee 2-4
60486 Frankfurt
Time Zone: GMT +1
Phone: (+49 69) 27 11 81 50
EMail: mail@smp-frankfurt.de
Stolze - Dr. Diers - Beermann GmbH
Neubruckenstrasse 5
48429 Emsdetten
Time Zone:
Phone: +49 (0)5971 808 226
EMail: beermann@stodibe.de
Stolze - Dr. Diers - Beermann GmbH
Timmermanufer 142 Rheine
48429 Rheine
Time Zone:
Phone: +49 (0)5971 808 226
EMail: beermann@stodibe.de
WIRA AG
Heidenkampsweg 51
20097 Hamburg
Time Zone: GMT +1
Phone: (+49 40) 410 988 394
EMail: ham@wira-audit.org
WIRA AG
Linprunstrasse 49
80335 Munich
Time Zone: GMT +1
Phone: (+49 89) 547 090 500
EMail: muc@wira-audit.org
WIRA AG
Aeussere Sulzbacher Str. 118
90491 Nuremberg
Time Zone: GMT +1
Phone: (+49 911) 959 98 260
EMail: nue@wira-audit.org
WIRA AG
Schulze Delitzsch-Strasse 28
70565 Stuttgart
Time Zone: GMT +1
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)
Time Zone: GMT+1
Phone: (+49 711) 48 93 10
EMail: info@wirtschaftstreuhand.de
WIRTSCHAFTSTREUHAND GROUP - Meissen
Schenk Wirtschaftstreuhand GmbH
Elbestrasse 1
01622 Meißen
Time Zone: GMT +1
Phone: (+49 3521) 41 28 0
EMail: info@schenk-wirtschaftstreuhand-meissen.de
WIRTSCHAFTSTREUHAND GROUP - Munich
Prannerstrasse 6
80333 Munich
Time Zone: GMT +1
Phone: (+49 89) 52 03 37 0
EMail: info-muc@wirtschaftstreuhand.de
WIRTSCHAFTSTREUHAND GROUP - Schorndorf
Rehhaldenweg 60
73614 Schorndorf
Time Zone: GMT +1
Phone: (+49 7181) 99 02 80
EMail: info-sdf@wirtschaftstreuhand.de
WLP GmbH Wirtschaftsprüfungsgesellschaft Steuerberatungsgesellschaft
Süderstr. 73
20097 Hamburg
Time Zone: GMT +1
Phone: (+49 40) 41 09 88 30
EMail: wlp@wlp-gmbh.de
WSR Cintinus GmbH
Koenigstraße 8
D-01097 Dresden
Time Zone:
Phone: (+ 49 351) 56 39 39 60
EMail: Peter.Gassen@cintinus.com
Contact Partner: Peter Gassen