How to Relocate to Germany
Learn more about the German economy., Be aware that the economy is bouncing back., Consider employment in the information technology industry., See the similarities., Curtail the sense of humour but be open., Be organised and efficient - do...
Step-by-Step Guide
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Step 1: Learn more about the German economy.
Germany is the world’s biggest exporting nation.
Its annual export volume of over €650bn consists of vehicles, chemicals, metals, textiles and foodstuffs.
It is a big producer of, among other things, iron, steel, coal, cement, chemicals, machinery, machine tools, electronics, ships, textiles and food and beverages. -
Step 2: Be aware that the economy is bouncing back.
Having attracted out-of-work UK builders in the 1980s – as depicted in the 1980s sitcom "Auf Wiedersehen, Pet"
Germany’s construction industry has fallen on hard times.
Buoyed by abundant World Cup work, favourable interest rates, new tax breaks and Government support for making German homes more environmentally-friendly, the future is looking brighter. ‘The Land of Ideas’ – as Germany now astutely markets itself – is still among the most innovative and technically adept in the world.
German consumers appreciate quality and innovation – often ahead of price. , Germany is the leader in internet commerce and has the highest rate of internet access in the EU; 65% of marketing is conducted via e-mail and the internet.
Beware the lattice of regulation that criss-crosses marketing; laws on privacy, consumer protection and data protection are stringent. , German and British cultures are not as poles apart as popular comedic myth would have it – but there are differences worth noting.
For example, the British sometimes are inclined to be overly polite.
Feigned interest in a project or deal – in order to appear courteous – can be misinterpreted as genuine by more straightforward Germans. , Caustically ironic British humour can be lost on their Teutonic cousins because of both language barriers and a different approach to humour.
By the same token, do not misinterpret formal, straightforward communication as coldness – they simply adopt a mode of interaction best suited to maximising efficiency. , Efficiency is valued – so plan meetings two or three weeks ahead, stick to a clearly delineated agenda, and persuade with facts, figures and illustrative examples.
Charismatic charlatans are less likely to make headway in Germany. , Quantifiable factors are important; intuition rather less so.
So offer risk analyses and promise frequent reviews.
Beware: a company with no track-record – a start-up – will automatically present a major risk in the German psyche. , Punctuality is paramount.
No wonder then that Germany has a first-class rail network; thanks to faster, more reliable trains, Germans are less likely to be delayed than their British counterparts. , It only takes a day to traverse Germany by road, while every major city can be reached within one hour via a total of 552 domestic and international airports.
Located in the heart of Europe, it is within a few hours of every European country in the EU, the biggest single market for trade and investment in the world. , Being on the doorstep of the latest and potential EU-accession countries is particularly tantalizing; it has been predicted that the economies of the 10 states that joined in 2004 will grow faster than the EU average for several years.
Despite having the benefits of being at the heart of Europe, Germany is not landlocked and has access to the lucrative North American markets, by sea. , Distributors and exporters could do worse than site their logistics operations in the country. , Germany is also the international hub for business conferences and trade fairs.
Given that 90% of new products and technologies are introduced into the German market via trade fairs, it is difficult to overstate their importance.
One the most famous trade fairs is the "Leipziger Messe" in Leipzig, which recently topped a poll, of thousands of CEOs, conducted by the Bertelsmann Foundation, about the best German cities to do business in.
In a survey of the 25 largest cities, Leipzig scored highest for business promotion and the competence of its political administration.
Bremen and Karlsruhe came joint second, followed by Gelsenkirchen, Dusseldorf and Wiesbaden.
Surprisingly, Berlin footed the table, with its banks, city council, trades council and employment exchange scoring particularly badly. , However, there is no such thing as a free lunch.
The tax burden on German business is onerous: large companies pay around 40%, one of the highest in the world.
The headline figure can be misleading, however.
The tax laws are complicated, and allowances, deductibles and write-offs lower the burden for companies in a number of industries. , Mercifully, plans have been drafted to lower the tax burden to around 30% – the same as in the UK.
Under the plans, partners of small firms would each get tax-free profit allowances of up to €100,000.
With a VAT hike of 3% – to 19% entering into force on 1 January, it might offset the impact, especially given already fragile consumer confidence.
Wages are also high – higher, even, than in the US: in 2002 they stood at $25 per hour, compared to $21 across the Atlantic. , Aside from the fact that Germany is an affluent country, tough employment laws and substantial social security expenses have inflated wages.
Companies have to share equally with their workers the burden of social security and healthcare costs.
German companies are constrained by a myriad of bureaucratic regulations.
Exacting safety and environmental laws can make the German markets difficult to enter, for instance.
However, EU standards often use German laws as a template, so UK companies should already operate within most parameters. -
Step 3: Consider employment in the information technology industry.
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Step 4: See the similarities.
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Step 5: Curtail the sense of humour but be open.
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Step 6: Be organised and efficient - do forward-planning.
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Step 7: Provide hard evidence of the facts.
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Step 8: Be on time!
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Step 9: Consider the benefits of fast travel within Germany.
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Step 10: Recognise the potential business advantages of being close to new EU countries.
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Step 11: Site logistics operations in Germany.
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Step 12: Use Germany for international promotional activities.
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Step 13: Be conscious of Germany's high taxation rate.
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Step 14: See a legal or financial professional to discuss taxation options.
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Step 15: Consider other issues related to costs.
Detailed Guide
Germany is the world’s biggest exporting nation.
Its annual export volume of over €650bn consists of vehicles, chemicals, metals, textiles and foodstuffs.
It is a big producer of, among other things, iron, steel, coal, cement, chemicals, machinery, machine tools, electronics, ships, textiles and food and beverages.
Having attracted out-of-work UK builders in the 1980s – as depicted in the 1980s sitcom "Auf Wiedersehen, Pet"
Germany’s construction industry has fallen on hard times.
Buoyed by abundant World Cup work, favourable interest rates, new tax breaks and Government support for making German homes more environmentally-friendly, the future is looking brighter. ‘The Land of Ideas’ – as Germany now astutely markets itself – is still among the most innovative and technically adept in the world.
German consumers appreciate quality and innovation – often ahead of price. , Germany is the leader in internet commerce and has the highest rate of internet access in the EU; 65% of marketing is conducted via e-mail and the internet.
Beware the lattice of regulation that criss-crosses marketing; laws on privacy, consumer protection and data protection are stringent. , German and British cultures are not as poles apart as popular comedic myth would have it – but there are differences worth noting.
For example, the British sometimes are inclined to be overly polite.
Feigned interest in a project or deal – in order to appear courteous – can be misinterpreted as genuine by more straightforward Germans. , Caustically ironic British humour can be lost on their Teutonic cousins because of both language barriers and a different approach to humour.
By the same token, do not misinterpret formal, straightforward communication as coldness – they simply adopt a mode of interaction best suited to maximising efficiency. , Efficiency is valued – so plan meetings two or three weeks ahead, stick to a clearly delineated agenda, and persuade with facts, figures and illustrative examples.
Charismatic charlatans are less likely to make headway in Germany. , Quantifiable factors are important; intuition rather less so.
So offer risk analyses and promise frequent reviews.
Beware: a company with no track-record – a start-up – will automatically present a major risk in the German psyche. , Punctuality is paramount.
No wonder then that Germany has a first-class rail network; thanks to faster, more reliable trains, Germans are less likely to be delayed than their British counterparts. , It only takes a day to traverse Germany by road, while every major city can be reached within one hour via a total of 552 domestic and international airports.
Located in the heart of Europe, it is within a few hours of every European country in the EU, the biggest single market for trade and investment in the world. , Being on the doorstep of the latest and potential EU-accession countries is particularly tantalizing; it has been predicted that the economies of the 10 states that joined in 2004 will grow faster than the EU average for several years.
Despite having the benefits of being at the heart of Europe, Germany is not landlocked and has access to the lucrative North American markets, by sea. , Distributors and exporters could do worse than site their logistics operations in the country. , Germany is also the international hub for business conferences and trade fairs.
Given that 90% of new products and technologies are introduced into the German market via trade fairs, it is difficult to overstate their importance.
One the most famous trade fairs is the "Leipziger Messe" in Leipzig, which recently topped a poll, of thousands of CEOs, conducted by the Bertelsmann Foundation, about the best German cities to do business in.
In a survey of the 25 largest cities, Leipzig scored highest for business promotion and the competence of its political administration.
Bremen and Karlsruhe came joint second, followed by Gelsenkirchen, Dusseldorf and Wiesbaden.
Surprisingly, Berlin footed the table, with its banks, city council, trades council and employment exchange scoring particularly badly. , However, there is no such thing as a free lunch.
The tax burden on German business is onerous: large companies pay around 40%, one of the highest in the world.
The headline figure can be misleading, however.
The tax laws are complicated, and allowances, deductibles and write-offs lower the burden for companies in a number of industries. , Mercifully, plans have been drafted to lower the tax burden to around 30% – the same as in the UK.
Under the plans, partners of small firms would each get tax-free profit allowances of up to €100,000.
With a VAT hike of 3% – to 19% entering into force on 1 January, it might offset the impact, especially given already fragile consumer confidence.
Wages are also high – higher, even, than in the US: in 2002 they stood at $25 per hour, compared to $21 across the Atlantic. , Aside from the fact that Germany is an affluent country, tough employment laws and substantial social security expenses have inflated wages.
Companies have to share equally with their workers the burden of social security and healthcare costs.
German companies are constrained by a myriad of bureaucratic regulations.
Exacting safety and environmental laws can make the German markets difficult to enter, for instance.
However, EU standards often use German laws as a template, so UK companies should already operate within most parameters.
About the Author
Teresa Thomas
A passionate writer with expertise in home improvement topics. Loves sharing practical knowledge.
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