Why choose Germany for investment?
The main funding options:
- Possibility of long-term planning
For decades, the country’s stable economy and constancy of the political system have provided the government with high international credit ratings. Financial drivers are a solid scientific and technological base and strong production, the share of which is more than 45% of the country’s economy.
- Transparent and thoughtful legislation
The laws spell out in detail the relations of investors with property sellers and tenants, construction standards, the degree of responsibility, and documentation requirements.
- Rising property prices and low financing costs
Germany today is a seller’s market. Demand for properties is high, and property values are growing by approximately 3% annually. The fixed financing rate for 10 years ranges from 1.0 to 2%. Investors can receive funds from the bank for up to 70% of the investment.
Many online regulations and highly qualified workers allow investors to transfer objects by inheritance while maintaining the benefits of ownership. The lifespan of new residential buildings is calculated for up to 80 years.
- Optimization of taxes and expenses
The thoughtfulness of the German tax system is visible in the example of companies that manage their real estate and are exempt from industrial tax. With a well-drafted lease agreement, many costs can be shifted to the property’s tenants.
About a third of the country’s population rents housing. For Germans, renting is a long-term story. When moving, the new owner will ask for a reference from the previous owner. The high liquidity of tenants in the commercial sector confirms the overall picture.
- No restrictions for foreign investors
The requirements for investors from other countries are the same as for Germans. Certain restrictive measures apply to some areas of the economy, which we will discuss further.
According to Transparency Int. In 2023, Germany ranked 9th in freedom from corruption out of 180 countries surveyed. The low level of corruption involvement is also confirmed by reports from the Federal Criminal Office (Bundeskriminalamt).
The right to live with family, a high level of security, modern healthcare, free world-class education, the ability to obtain a legal residence permit, and the opportunity to become a citizen—all these attract investors to the country to make E-commerce startup tips for Germany.
