Germany has an open and welcoming attitude towards foreign direct investment (FDI). For many
decades, Germany has consistently experienced significant inbound investment.
It is widely recognized that foreign investment has been a considerable contributor to Germany’s growth and
prosperity. The German government and industry actively encourage foreign investment. U.S.
Investment has been strong and continues to account for a large share of foreign investment. The
investment-related problems foreign companies face are generally the same as for domestic
firms, for example, high marginal income tax rates and labor laws that impede hiring and
The government has begun to address many of these problem areas through reform