Velasco, Grace D.

BSOA 4-2

INTERNATIONAL STUDIES IN BUSINESS

According to World Bank (2023) the Gross Domestic Product per capita in Germany was last
recorded at 42726.49 US dollars in 2021. The GDP per Capita in Germany is equivalent to 33.8
percent of the world's average. Fortunately, the German economy has recently proven to be
among the most resilient ones in Europe, development can be restricted by forces beyond
Germany's control. Germany is heavily dependent on exports, so when things go south
anywhere else, it has an impact here as well. Undoubtedly, its EU membership has boosted
growth, but it has also made it more vulnerable to the wider economic issues facing Europe.
Germany is the fourth largest in the world. Germany has a significant competitive edge on the
world stage because of its ability to get the single market. The employees in Germany have high
educational standards on average, highly qualified, motivated personnel, unified tax law, and
less regulation. Due to its benefits, entering a business in Germany has its challenges with
difficulties. Germany offers tax incentives which allocate a lot of time and requirements. It
requires nine tax payments by businesses annually, which takes 218 hours of work. Another
time-consuming task that requires a lot of work is processing social security payments, which
requires 134 hours per year. Entering business in Germany must request an extract from the
land registry, notarize the transfer agreement, obtain a municipal waiver of pre-emption rights,
and pay a transfer tax when registering property. It should take about 52 days to finish this.