Germany is located in central part of Northern Europe and has a territory of 357,000 square kilometers. Germany borders Austria, Belgium, Czech Republic, Denmark, France, Luxembourg, Netherlands, Poland and Switzerland. Germany has access to the Baltic Sea and to the North Sea. Germany has a population of 83 million people.
Corporate taxation, VAT taxation, Personal taxation
- Corporate income tax - 15%. 5.5% solidarity surcharge applies to this tax rate. Tax returns are filed on an annual basis. Advance income tax payments are made on a quarterly basis
- Trade tax - Base tax rate 3.5% multiplied by a municipal tax rate from 250% up to 580%. Advance trade tax payments are made on a quarterly basis
- Dividend withholding tax - Standard rate 25%
- Interest withholding tax - Standard tax rate 0%
- Royalties withholding tax - Standard rate 15%
- Capital gains tax - 25%. 5.5% solidarity surcharge applies to this tax rate
- VAT - Standard tax rate 19% or reduced rates from 0% up to 7% or tax exempt. Tax returns are filed on a monthly, quarterly or an annual basis
- Personal income tax - from 14% up to 45%. 5.5% solidarity surcharge applies to this tax rate.
The following are the most common types of companies to incorporate a company in Germany as:
- Limited liability company (Gesellschaft mit beschränkter Haftung - GmbH)
- Entrepreneural company (Unternehmensgesellschaft - UG)
- Public limited company (Aktiengesellschaft - AG)
- General partnership (Offene Handelsgesellschaft - oHG)
- Limited partnership (Kommanditgesellschaft - KG)
- Partnership limited by shares (Kommanditgesellschaft auf Aktien)
- Civil law company (Gesellschaft bürgerlichen Rechts - GbR)
- European company (Societas Europaea)
- Branch office (Zweigniederlassung).
Official currency of Germany is euro (EUR).
GDP growth in 2018 amounted to around 3%.
Traditionally German economy is focused on production. The activity of various local enterprises is aimed at the creation of innovative technologies for industrial manufacturing. Germany remains a producing country, the main exporting state of the European Union.
Germany is one of the main destinations for foreign investments in Europe due to a highly-developed infrastructure, highly-qualified work force, a stable, predictable and transparent legal and justice systems, as well as due to the world-class R&D.