The Fourth Largest Economy in the World

R&D: Tax incentives available nationally

Several R&D incentives programmes are aimed at providing money for R&D project personnel expenditure. However, support is also available for instruments and equipment used for R&D. Grant rates can reach up to 50% of eligible project costs for large companies. Tax credits up to EUR 1 mn annually are also available.

Job creation & CAPEX: Limited tax and cash incentives available to parts of Germany

The "Joint Task for Improving Regional Economic Structures" (Gemeinschaftsaufgabe - GRW), is one of the main programmes for cash grants, throughout Germany in assisted areas (maximum aid intensity of 25% for large companies). Most assisted areas are in East Germany, however, there are pockets in other regions. In addition to ‘c’ areas, Germany has a number of ‘d’ areas where large companies can access de minimis funding for jobs and capex.

Training: Limited subsidies and cash incentives are available

Training support is limited but there are training measures available in certain areas (e.g. training measures before operating machinery and technical equipment) where up to 100 % of the costs can be covered by regional authorities. On-the-job training support can also be funded in certain circumstances with a 50% cap on funding levels.

Green and other: Limited tax and cash incentives available nationally

The German state-owned bank KfW offers loans on favorable terms for measures that increase buildings’ energy efficiency. The loans are available for both constructions of new energy-efficient buildings and modernisation of existing buildings to boost energy efficiency.