Reasons to Relocate

Why German Companies Are Considering Leaving Germany

In recent years, many German companies have grown increasingly dissatisfied with conditions in Germany. Key issues include:

High Energy Costs

Germany’s energy transition (“Energiewende”) and the cutoff of Russian gas have drastically increased industrial energy prices. According to industry surveys, energy costs in Germany are now among the highest in the world, putting heavy manufacturing and chemical industries at a disadvantage.

Overregulation and Bureaucracy

German companies face a heavy regulatory burden—complex labor laws, strict environmental regulations, and lengthy permitting processes slow down business operations and increase costs.

High Tax Burden

Germany has a high corporate tax rate (around 30% combined federal and local). Additionally, high social contributions and wage taxes raise the cost of labor.

Declining Infrastructure and Innovation Fatigue

Germany has underinvested in digital and physical infrastructure. Delays in broadband expansion, deteriorating roads, and outdated schools are symptoms of a broader malaise. Meanwhile, innovation and digital transformation are hampered by slow approval processes and limited venture capital.

Geopolitical and Economic Uncertainty in the EU

Ongoing uncertainty surrounding EU regulations, Brexit aftershocks, inflation, and sluggish EU-wide economic growth further fuel the desire for relocation.