Investment Climate

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As the largest market in Europe , Germany is a major destination for foreign direct investment , and a vast FDI stock has accumulated over the last decades.

In surveys , Germany is ranked as one of the most attractive destinations for FDI, thanks to

  • reliable infrastructure,
  • a qualified workforce,
  • a positive social climate,
  • stable legal environment and
  • quality research.

The German legal, regulatory and accounting systems can be complex , but are transparent and consistent with international norms. Businesses enjoy considerable freedom within a well - regulated environment. Investors are treated equally when it comes to investment incentives, establishment, and protec tion of real and intellectual property, foreign investors can fully rely on the legal system which is efficient and sophisticated.

At the same time , this system requires investors to pay attention to their legal obligations. First - time investors will need to ensure that they have the necessary legal expertise either in - house our outside to meet all requirements .

Germany has effective capital markets and relies heavily on its modern banking system. State - owned enterprises are mainly in charge of supplying municipal water , energy and national rail transportation .

The primary objectives of government policy are to create jobs and foster economic growth. Labor unions play a constructive role in collective bargaining agreements as well as on companies’ work councils.