Bavaria’s gross domestic product of EUR 522 billion puts it ahead of 21 of the 28 EU member states. The economic output per resident is also far above the German and European average (2013), at EUR 38,429.
As a globally active market, Bavaria is home not only to global players such as Adidas, Allianz, Audi, BMW, MTU Aero Engines, MAN and Siemens, but also to a strong basis of small and medium-sized businesses in industry, trades and the service sector. Investors thus encounter a broad spectrum of competitive suppliers, potential customers and cooperation partners.
Bavaria enjoys an outstanding position in many fields:
The state government of Bavaria is pursuing a series of initiatives in order to ensure that companies have a constant stream of young specialist staff. A big advantage is that the location’s attractiveness means that many foreign workers feel right at home in Bavaria. Find out more about the Bavaria labour market here. Qualifications and training are the key resources for Bavaria as a location. The level of expertise and skill of the state’s workers guarantee Bavaria’s economic success in global competition and are the key reason why so many international companies set up sites in Bavaria.
The Federal Employment Agency is present in every town and district in the state with its Job Centers. The Agency offers professional personnel services free of charge to interested companies. In addition, numerous private providers offer specialist services, from the recruitment of specific professional groups to brokering management staff. Invest in Bavaria can provide contacts for acquiring staff. Here you can also find information on the public programs with which the federal government and the states promote the establishment of a qualified group of staff and further training programs for new employees. Under certain circumstances, companies may be entitled to direct state wage subsidies when employing new staff. Employment relationships in Germany are generally concluded in writing in a contract. The State of Bavaria and the federal authorities have created a series of flexible employment alternatives to make it as simple as possible for companies to employ staff. These measures are chiefly suitable for establishing new business opportunities.
The State of Bavaria offers a wide range of funding services for foreign investors. These include investment incentives for small, medium-sized and large companies. Regardless of their size, companies can also gain innovation funding for conducting research and development projects.The range of products extends from non-repayable subsidies to low-interest loans and even the provision of guarantees.As well as the funding programs offered by Bavaria itself, companies based in the state can also benefit from German and EU funding programs. funding database of the Federal Ministry for Economic Affairs and Energy provides an overview of funding options offered by Germany and the Free State of Bavaria, while a summary of the latest information on EU programs can be found on the website of the Bavarian State Ministry of Economic Affairs and Media, Energy and Technology.
Based in Munich and Nuremberg, the “Haus der Forschung” provides initial advice on the Bavarian technology funding programs and federal funding programs, and brokers contact with the relevant project sponsor.
For what is funding available?
Investment and innovation projects
Who can receive funding?
Small, medium-sized and large companies based in Bavaria.
How is funding provided?
You can find current funding programmes online:
Quality work begins at school and in apprenticeships. After all, the schoolchildren and apprentices of today are the engineers and specialist staff of tomorrow. That is why the State of Bavaria is investing in a high-performing education system to form the basis of economic success and an innovative, liveable society.
Education and training are the largest single items in Bavarian state spending, and the result is something to be proud of. Bavaria’s school students have been among the best in Europe for many years, and lead most rankings among German states, too. Numerous international schools and a growing number of opportunities for multilingual education underpin the international standards of education and training in the state and make it easier for young immigrants to find their feet.Bavaria’s many universities are training the next generation of highly-qualified academics for a wide range of sectors and companies. The dual apprenticeship system consisting of both practical experience in a company and school-based training also provides more staff for the future. This is not only the basis of Germany’s success as an export nation, but is also developing into an export hit in its own right.Find out more about the Bavarian education system here.
Global players need an internationally orientated environment. The State of Bavaria offers ideal conditions for foreign investors in education, too. Numerous international schools teach in English or the languages of other countries of origin, leading to internationally recognized qualifications. When children from all over the world learn together in one class, it creates an intercultural, open-minded atmosphere – the ideal approach for foreign companies who wish to establish themselves in Bavaria along with their employees and their families. And the ideal starting point for Bavarian workers when preparing for a move abroad with their families.
You can find an overview of the international secondary schools in Bavaria here. Additionally, there are many nurseries and schools for citizens of certain countries of origin. For information relating to a specific country, you are welcome to contact our relevant investor adviser.
Bavaria is one of the world’s leading locations for science and research. The state’s modern and internationally-orientated universities are the driving force behind innovation and progress. Their graduates are outstandingly educated and highly motivated professionals whom companies in the business location of Bavaria can rely on.
Nine state and multiple non-state universities educate the next generation of academics in Bavaria. Successful careers in science and practice await these highly qualified graduates with their internationally recognised degrees. Both universities in Munich (LMU and TUM) have been recognised as elite universities on a number of occasions as part of the excellence initiative run by the national and state governments.
The 17 state and eight non-state universities of applied sciences train students specifically for careers in financial, technical or social professions. The degree courses are more practically orientated and are targeted exactly towards specific professional requirements. Bavarian universities of applied sciences are thus securing the next generation of outstandingly qualified professionals who can be immediately entrusted with positions of responsibility within companies.
The dual apprenticeship system is firmly embedded in Bavaria. It perfectly combines practical experience in a company with theoretical training, benefiting both the companies based here and their specialist staff.
The parallel transfer of knowledge at the company and the vocational college in these dual apprenticeships ensures that the apprentices acquire theoretical knowledge in conjunction with practical skills. Professional experience and academic learning complement one another perfectly and guarantee a high standard of training.
The dual degree programs at Bavarian universities open the door to excellent career prospects. Thanks to the way theory and practice are interlinked, it takes just a short time for graduates to acquire a highly qualified and comprehensive academic education which absolutely matches what companies are currently looking for.
Bavarian State Ministry of Teaching and Education (EN/DE)
An overview of all information on education in Bavaria.
My education pathway (EN/DE)
An online guide to the multifaceted education system in Bavaria.
Find all schools in Bavaria (DE)
On this site, you can search for a Bavarian school near you, a type of school and various educational opportunities.
State Institute for School Quality and Education Research (ISB) (DE)
The ISB makes research findings and practical experience usable for schools.
Work in Bavaria (EN)
A guide to apprenticeships, further training and individual training systems.
Forming a company in Germany is easy. Foreign investors have the opportunity to set up a non-independent branch in Germany and thus to begin company operations in Germany right away. They can found subsidiaries and, in doing so, choose between all company forms, just like German business people. Crucial criteria in this decision often include the desired role of the shareholders, possible limitations of liability and tax-related aspects. There are two fundamental types of company under German law – joint-stock companies and partnerships. Each has multiple sub-forms with specific advantages.
What do you need to know before starting to work in Bavaria, Germany? And what do you need to take into account during your stay to make sure your are on the right side of the law? You can find answers to these questions in this category.
Citizens of Europe and the EU
As a citizen of a European or EU country, you do not usually need a visa to enter Germany, nor do you need to apply for a residency or work permit. You can work in Bavaria at any time. However, because restrictions are currently in place for some European countries, separate permits must be applied for in these cases from the Zentrale Auslands- und Fachvermittlung (ZAV) of the Federal Employment Agency, in order to work in Germany. More details and information can be gained from the local foreigner registration offices in Bavaria (see list of links)
Citizens of other countries
Citizens of all other countries require a residency permit which explicitly allows you to work in Germany. In accordance with the German Residence Act, the following residency permits exist (August 2012):
More details and information can be gained from the local foreigner registration offices in Bavaria (see list of links).
The migration check provided by the Federal Employment Agency offers an initial point of reference to find out whether you will have any problems working in Bavaria.
Bavaria offers a competitive system of corporate taxation. The average total tax burden for Germany as a whole is 28.9 per cent – lower than in other large industrialized nations such as France, Spain, Italy and the United Kingdom. In fact, the tax burden for companies is even lower in some parts of Bavaria, as towns and districts often grant their companies more favorable conditions when it comes to local business tax.
Companies in Germany are taxed in two different ways, depending on the legal form.
Corporations with the legal form AG or GmbH are subject to corporation tax, currently at 15 per cent. All profit distributions to the shareholders are then taxed at 60 per cent and subject to a flat rate withholding tax (income tax) of 25 per cent, which means that another 15 per cent tax is due when a profit distribution is made.
Partnerships with legal forms such as GbR, oG or KG are not subject to corporation tax. Here, the company’s profit shares are attributed to the individual shareholders, who must pay income tax individually in line with the progressive tax rate (currently a maximum of 45 per cent).
In addition, both corporations and partnerships pay local business rates. Business rates are a district-level tax for which the tax rate is defined individually by the local district administration. This means that local business rates vary from district to district. The usual rate is around 15 per cent.
In contrast to other industrial nations, Germany’s social security system is principally financed by a pay-as-you-go system. All employees are obligated to pay social security contributions. In principle, half of ongoing social security spending (pension payments, treatment of the sick, nursing care fees and unemployment benefits) is paid for by the employer and the other half by the employee. Only the contributions to accident insurance are paid by the employer alone. Social security contributions are deducted directly by the social security provider. When choosing a location, it is important to consider not only nominal tax rates, but also additional wage costs and fee models, such as those for waste disposal. When all effective costs are compared, Bavaria often proves to be a better value location that can compete with comparable locations in Central Europe.
Here you can find an overview of useful information on tax policy, tax law, the different types of tax and important dates:
Here you can find important tax-related information for your future business or professional activities in Germany.
You can find local points of contact for all tax-related issues in Bavaria here.
Are you looking to expand your company to Europe? We provide you with all the important information, valuable contacts and customized support for your expansion project. Our cross cultural teams in the U.S. and Bavaria, Germany look forward to helping you. Our services are always cost free and confidential.