Germany is a social market economy with a large capital stock, highly skilled labor force, high level of innovation and low level of corruption. It is the largest economy in Europe and the fourth largest nation in the world in terms of nominal GDP. In addition to the intelligent economy and productive market structure, Germany also offers investment opportunities in its real estate segment.
What impacts the German real estate market? Real estate market’s volatility can be explained by numerous macroeconomic as well as social factors of the country. Due to the European Central Bank’s policy of zero interest rate, mortgage interest rates remain record low providing historically favorable financing conditions. Furthermore, quantitative easing (QE) pursued by the ECB leads to higher liquidity increasing the investment pressure as investors are looking for potential investment opportunities with an above-average return in relatively safe sectors. QE also weakens the Euro making the German real estate market even more attractive to investors coming from outside of the Eurozone.
New projects and construction activity notably lags behind the growing demand leading to growing real estate prices. The German Property Index (GPI) which follows the return of all real estate investments in Germany reached 14.7% in 2016 which is a record level since German reunification. The demand for high-quality properties is increasing due to the demographic and macroeconomic trends in Germany – still ongoing urbanization and growing conurbation. Germany is experiencing a positive reversal in birth rates and other demographic factors. For example, the birth rate increased from 1.39 to 1.50 per woman from 2011 to 2015. In addition, Germany is experiencing a continuing migration surplus which manages to partly compensate the demographic imbalance.
Similarly, also commercial property, especially office spaces, experience a great demand due to record employment levels and low unemployment rates in addition to benefiting from the growing purchasing power and high propensity to consume. Logistics and storage properties are crucial to growing businesses and therefore in high demand due to the increasing numbers of wholesale and retail trade. Below is an overview from the main sectors of the German real estate market.
Residential Properties The residential property market has managed to recover from the financial crisis and the market stagnation in the years after 2009. The construction projects of residential properties have increased steadily in the previous years leading to approximately 277,000 completed housing units in 2016. In 2015, residential property construction with a total investment of 170 billion EUR accounted for 60% of the total construction volume in Germany. Despite a meaningful increase in the granted construction permits (375,400 granted permits in 2016) and record high levels of completed projects, the demand still significantly surpasses the volume of completed residential projects.
Future outlook expects an increase in new construction permit requests and reaching 272,000 units per year till 2020 and further slowing down to 230,000 units per year until 2030. Meanwhile, in the short term, the residential property could surge to 380,000 units due to increased immigration.
However, the demand levels for residential properties significantly differ from region to region. In some regions, the gap between the demand and available properties could close soon, particularly in Eastern Germany. Meanwhile, in some regions, particularly in thriving urban areas, the available housing units will remain very scarce.
Along with the insufficient supply, quoted rents have increased accordingly. Especially in large cities, the trend of growing rents has been rather dynamic. For example, the annual growth rate of housing rents in Germany has been around 1.7% since 2004. Meanwhile, rent increased by 3.9% and 3.5% annually in Berlin and Munich accordingly. Both cities experienced a 6% yearly growth in purchase prices in this real estate sector.
Office Properties Similarly as residential properties, also office properties’ market is in a good and forward-looking shape mainly due to positive migration balance and historically low unemployment rates. In 2016, approximately 3.9 million square meters of office space was rented in the top 7 cities in Germany. This indicates a growth of 12% in comparison to the previous period. A particularly dynamic development was observed in Frankfurt, Cologne and Stuttgart with growth rates ranging between 25% and 48.4%. Meanwhile, Hamburg, Dusseldorf, Munich and Berlin have experienced a cool-down in floor-space turnover in comparison to previous years.
The overall vacancy rate of office properties has decreased due to several factors: a dynamic demand, a slow expansion of floor space and high pre-letting rates. Across the top 7 cities mentioned above, the vacancy rate decreased by 0.7% points to 4.9%. In the top 7 real estate locations in Germany, the prime office rents range between 21 EUR/m2 and 37.50 EUR/m2 giving an attractive potential for investment return. This especially applies to Berlin, where rents have increased by more than 17% in comparison to 2015 reaching 28.7 EUR/m2. Currently, the highest office rents are in Frankfurt and Munich (37.50 EUR/m2 and 35 EUR/m2 accordingly).
Local investors retain the dominant market position accounting for around 60% of the total transaction activity in office property market. Meanwhile, foreign investors account for approximately two fifths (or 20.9 billion EUR) of the transaction volume.
In today's highly digital world, ways of doing various things have changed dramatically – staying connected with family and friends, doing business, learning and of course – trading. Over the years, technology advancements have provided us with the convenience of online payments. Trading online is possible with credit or debit cards, using payment services, such as Paypal, or using cryptocurrencies.
Cryptocurrencies are digital assets designed to serve as a medium of exchange and uses cryptography to secure the transactions as well as to control the creation of new units of the currency. Cryptocurrencies are usually classified as a subset of alternative currencies, also called digital or virtual currencies. As opposed to standard money and centralized banking systems in the world, cryptocurrencies are controlled decentralized – using blockchain transaction databases.
BitCoin became the first cryptocurrency in 2009. Interestingly, BitCoin inventor, Satoshi Nakamoto, did not want to invent an alternative currency but it emerged as a side product to another invention. His initial plan was to develop an electronic cash system that is completely decentralized with no servers or central authority. But over time, BitCoin has gained great popularity despite numerous tries to develop new cryptocurrencies (most of them are called altcoins from alternative and bitcoin, showing their relatedness to BitCoins).
Why cryptocurrencies are so popular? As one of the key driving forces behind the increasing value of BitCoin, is its widespread usage across the world with many now choosing to make payments via BitCoin instead of using other methods. For consumers, a possibility to use BitCoin means increased ease and convenience in addition to higher security if comparing to a credit or debit card due to significantly lower risk of identity theft and fraud during online trading. Popularity among consumers is growing also because acceptance of BitCoins is increasing among businesses. Nowadays, trading in real life is also possible using BitCoins – from restaurants and coffee shops to real estate companies and other establishements who accept BitCoins. It is more than likely that with the growing value and popularity, the number of businesses and retailers that accept BitCoins will continue to rise. Among others, it is possible to point out various other benefits of BitCoin:
Quick and cheap transactions – when transferring BitCoins, transfer fees are significantly lower compared to other conventional types of money. In addition, international money transfers can take from several days to more than a week to be complete, whereas BitCoin transaction is generally comple within an hour. This is due to BitCoins being completely global and subject to very few laws or restrictions of any country's central banking institution; This leads to the next characteristic of BitCoin that is appealing to investors – as it is completely digital, BitCoins do not have physical production or storage issues, it is not controlled by the government or the central banking institution of any country, therefore it cannot be influenced by monetary and fiscal decisions or political actions; In the world of financial trading, BitCoin is a new area of investment, which brings rather huge volatility and behaves differently than other conventional currencies. In late 2013, investors started to see BitCoin as an attractive investment vehicle. BitCoin gained in value massively from 200 USD in November 2013 to more than 1000 USD only a month later. It is important to point out, that volatility not always leads to exceptional gains. One of the reasons for BitCoins volatility is the uncertainties related to its legitimacy. Many countries still have not decided how to regulate cryptocurrencies. And when they do, it may have a great impact on the value of BitCoin and its future as the most popular cryptocurrency.
The development of telecommunications and economic globalization has made it possible for interested investors to form companies around the world. With proper research, financial investments, and legal backing, business ventures can safely be established in almost all of the world's countries. While it was once a complicated corporate endeavor to establish an international business, it is now commonplace with the help of experienced legal and economic advisers.
The advantages of forming a company in a foreign country are as numerous as they are obvious. Many countries offer specific location-based benefits, ranging from natural resources and established infrastructure to favorable laws and regulations that encourage growth in a specific industry. Likewise, it may be difficult to establish a venture or acquisition in one's home country because of disadvantageous situations: political or regulatory environments, lack of resources, and more. In this situation, it is useful to consider an overseas option that offers greater opportunities for growth, development, and success.
Company Registration in Bosnia and Herzegovina When establishing a company in Bosnia and Herzegovina, an interested investor must do due diligence with regard to legal processes, international regulations, and sufficient investment for success. It is critical to understand cultural, social, and political factors that will affect the establishment and growth of one's business; failure to do so could result in unintended consequences. Poorly-researched and tone-deaf international launches often end in disaster, as time, money, and energy is lost because of poor planning.
Legal documents Each country of the world presents its own set of intricate challenges with regard to forming, developing, and sustaining a business. Owners, financiers, and investors must enter into these engagements with the support of a knowledgeable and experienced legal team. Only someone with detailed knowledge of local and international corporate law will be able to set up an overseas business while avoiding the pitfalls that affect many new companies.
Additionally, shrewd businesspeople may consider opportunities to invest in overseas businesses without actually forming their own companies. In these situations, it still benefits the investor to team up with a knowledgeable adviser in global economics and litigation. International investments create a truly diverse portfolio that offers opportunities for growth that were unthinkable just decades ago.
Potential investors, venture capitalists, and entrepreneurs should consider existing infrastructure in Bosnia and Herzegovina when planning the launch of a new business. While substantial infrastructure and systems can help to make the business establishment a smooth process, it could also represent market saturation and diminished potential for growth. On the other hand, a lack of infrastructure often serves as a major hindrance to growth; however, lack of infrastructure indicates a clear market opening for a creative and efficient new business.
Website applications for business A corporate website can have various purposes, performing a number of internal and external functions to help boost the success of your business. Internal functions are related to the actions users take when already on the website, while external functions serve to bring clients to the site, i.e. they are related to how the website appears on other portals, such as search engines.
Internal business functions Internal business functions relate to how your corporate website presents information to users and guides them towards conversion, i.e. the moment when a user becomes a (potential) client by ordering something or contacting the company. This is achieved through the use of web design tools, such as content layouts, call-to-action elements, landing pages and many others. A quality website ensures that a potential client is easily able to find what he or she is searching for, and is then guided towards making a purchase or placing an order.
Another important function is to create a pleasant general user experience. A user is more likely to want to become a client if he/she enjoys the website in general. This is also linked to the fact that an abundance of interesting product-related information makes clients feel a lot more confident about their actions — they feel that in purchasing your product they are making a well-informed choice, which, again, increases the likelihood that they will actually want to buy it.
External business functions A website’s external business functions relate to how potential clients are drawn to the site, before they have had a chance to see what it contains. This is a particularly important task, as if a client does not enter the website, he/she cannot use it to make a purchase or carry out any other kind of interaction. Websites achieve this goal by optimising their content in such a way that makes it visible to search engines and ensures that whatever the user sees is relevant and attention-grabbing, encouraging them to visit the site.
There are many additional ways to ensure that your company website attracts the interest of potential clients, most of which are linked to the amount of additional information displayed in search engines — maps with your address, illustrations from the website, a list of the site's sub-sections, etc. The more abundant this information, the more trustworthy the company looks; this is achieved by careful manipulation of the website’s content, so that search engines deem it worthy of such a detailed description.
The United Kingdom of Great Britain and Northern Ireland or simply the UK is the largest state in the British Isles and includes the island of Great Britain, Northern Ireland located on the north-eastern part of the island of Ireland and bordering the Republic of Ireland and many other smaller islands. This country has a long and rich history that is combined with liberal, modern and forward looking mentality. Due to numerous waves of immigration, the UK is extremely culturally diverse. The UK is not only one of the leading financial centres in the world, it has numerous other strong industries that combine into the fifth largest economy in the world and the second largest economy in Europe after Germany.
Currently, the UK is going through major changes and one can only wait to see how the UK’s economy will look after leaving the European Union. For now, we can take a look at popular applications of the UK companies and the reasons why the UK is one of the largest destinations for foreign entrepreneurs.
An entry point for the rest of the Europe The UK is a major gateway to the rest of the Europe. The UK is a key trading partner within the European Union and also has links to other member states of the Commonwealth of Nations. Access to larger markets is a crucial factor for any business and numerous foreign entrepreneurs see the UK as the most advantageous location from where to operate their businesses in order to reach as many other markets as possible.
Currently, the UK is enjoying being a part of the EU’s single market which means that among other benefits businesses registered in the UK can freely trade with any member country of the EU’s single market with no tariffs, quotas or taxes on trade. This is not only financially beneficial to the UK’s businesses, but also time saving and most importantly – providing them with huge customer base. After leaving the European Union, the UK will most likely leave the single market, but trade agreements are under negotiation to continue benefitting from the potential customer base living in the EU.
Develop new products In 2011, the UK’s government launched a campaign to promote an enterprise led recovery from the recession. The campaign with a name StartUp Britain was developed to provide inspiration and support to entrepreneurs. Since then annual start-up rates have been increasing each year as entrepreneurs value the provided technical support in developing new products and other support needed for entrepreneurs. This is just one example of numerous campaigns, think tanks and business incubators all around the country. Additionally, the UK is rich with resources and extremely smart professionals willing to change the world with their business ideas.
Find new clients, suppliers and partners According to the World Bank, the UK is home to more than 65 million people and is among few countries in Europe where the population is expected to grow in the future. Entrepreneurs are right to utilize the benefits of this large base of wealthy customers.
But the UK is not only attractive to foreign and local entrepreneurs because of the benefits provided by the large local customer base and potential markets, but also because the UK is a perfect location to meet new suppliers and partners for your business. Just like you, numerous other entrepreneurs decide each day to relocate to the UK because of the reasons discussed above. Due to the popularity of the English language, foreign entrepreneurs are able to communicate with each other as well as the local entrepreneurs with no language barrier. The UK often hosts numerous trade and business related conferences, shows and workshops which helps to bring together likeminded people with business ideas.
Major industries in the country are iron, steel, nonferrous metals, chemicals, food processing, machinery and transportation equipment, textiles and clothing, electronics, construction, furniture and other wood products, shipbuilding and refurbishment, windmills, pharmaceuticals, medical equipment. The Industrial Production growth rate of Denmark is 0.4%.5.2% of population in the country are unemployed. The total number of unemployed people in Denmark is 299,227. Denmark produces 29,850 GW/h of electricity each year. Denmark emits 7.2 metric tons per capita of CO₂. On average, you would pay 2.01 USD for one liter of gasoline in Denmark. One liter of diesel would cost 1.38 USD.
Belgium is considered a developed nation. A nation's stage of development is determined by a number of factors including, but not limited to, economic prosperity, life expectancy, income equality and quality of life. As a developed nation, Belgium is able to offer its citizens social services such as public education, health care and law enforcement. Citizens of developed countries enjoy a high standard of living and longer life expectancies than citizens of developing countries. Belgium exports about US$295.3 billion and imports about US$310.2 billion each year. 6.6% of the country's population is unemployed. The total number of unemployed in Belgium is 758,902. In Belgium, 15.1% of the population lives below the poverty line. The percentage of citizens living below the poverty line in Belgium is quite high, but not a cause for great concern in terms of investments. Potential lenders should look at other economic indicators, including GDP, the rate of urbanization and the strength of the currency, before making investment decisions. Government spending on education is 6% of GDP. The country's Gini index is 25.9. Belgium experiences a high level of equality. The income differences between citizens are only slightly significant. Belgium has a Human Development Index (HDI) of 0.881. Belgium has a very high HDI value. This suggests that almost all citizens are able to live a desirable life because of social and economic support; Citizens with a low standard of living receive help and support and have the opportunity to rise in society. The Global Peace Index (GPI) for Belgium is 1.365. Due to the strong presence of the law enforcement authorities and the high level of social responsibility, Belgium is very safe in international comparison. The index for the strength of legal rights for Belgium is 4. Overall, it is considered rather insufficient – bankruptcy and collateral laws can protect the rights of borrowers and lenders to a certain extent; Credit information may be sufficient but scarcely available, or conversely, available but not sufficient.
Currency The currency of Belgium is the euro. There are several plural forms of the name "euro". These are euros, euros. The symbol used for this currency is €, abbreviated to EUR. The euro is divided into cents; 1 euro is 100.
Credit rating The depth index of credit information for Belgium is 5, which means that the information is usually sufficient and easily accessible, although occasionally some necessary details may be missing. According to the credit rating agency S&P, Belgium has a credit rating of AA and the prospects for this rating are negative. According to the rating agency Fitch, Belgium has a credit rating of AA and the prospects for this rating are stable. According to the rating agency Moody's, Belgium has a credit rating of Aa3 and the prospects for this rating are negative.
Central bank The key interest rate for Belgian commercial banks is 3.5. In Belgium, the institution that manages the state's currency, money supply and interest rates is called the National Bank of Belgium. Locally, the Belgian central bank is called Nationale Bank van België, Banque national de Belgique, Belgian National Bank. The average interest rate on deposits offered by local banks in Belgium is 1.65%.
National debt Belgium has a public debt equivalent to 23% of the country's gross domestic product (GDP) as estimated in 2012.
Control information Corporate tax in Belgium is 33.99%. Personal income tax ranges from 0% to 64% depending on your specific situation and income level. VAT in Belgium is 21%.
Finances The total Gross Domestic Product (GDP) valued as Purchasing Power Parity (PPP) in Belgium is US$483331 billion. The gross domestic product (GDP) per capita in Belgium, calculated as purchasing power parity (PPP), was last at 42 million dollars. PPP in Belgium is considered below average compared to other countries. Below-average PPPs indicate that citizens in this country find it difficult to buy local goods. Local goods can include food, shelter, clothing, healthcare, personal hygiene, essential furnishings, transportation and communications, laundry, and various types of insurance. Countries with below-average purchasing power parities are dangerous locations for investments. The total gross domestic product (GDP) in Belgium is 524.806 billion. Based on this statistic, Belgium is considered as a large economy. Countries with large economies below
One of the most flexible business structures that Poland has to offer is a Sp. z. O. O. (Limited Liability Company) as it offers limited liability of its shareholders. The business structure of a limited liability company is the most widespread in Poland. To successfully integrate an SP. e.g. o .o you need a minimum share capital of 5000 PLN (~1180 EUR), divided into several shares. In order to complete the incorporation process with the commercial register, a director, a shareholder and the legal address of a company are required. The liability of the partners is strictly limited by the amount of their contribution to the company capital.
Brief overview of the Polish economy The economy in Poland is quite thriving, mainly due to the private corporate sector. The Polish government encourages foreign investment in Poland by signing double tax treaties with a large number of countries and offering a wide range of incentives to entrepreneurs who decide to come from abroad and start a business in Poland.
Company incorporation procedure The formation process of the Polish LLC may vary slightly depending on the circumstances. However, there is a general pattern of steps that need to be taken to successfully start a fully functioning business:
Signing of the constitutional deed of incorporation and the articles of association. Both documents should be notarized; Conclusion of a document (often lease agreement) for renting premises where the legal address and official office of the company will be located; Submission of all incorporation documents to the National Commercial Register of Poland; Notifying the local tax authority of a new company with operations. obtaining a local taxpayer number; registration of the company in the register in the Official Gazette; Registration of the enterprise with the local branch of the statistical office; Opening a corporate bank account at the local (or foreign) bank; Notification of labor and health services in accordance with the legal requirements of labor law; If staff are hired, they must be reported to the local Social Security Administration office. business needs At least one director must be present on the board of directors to form an LLC in Poland. In Poland, only a natural person can be the manager of a company: another company or legal entity cannot hold this position. There are no legal citizenship and/or residency requirements for directors, but to speed things up with banks and tax administration it is strongly recommended that a resident director be appointed. An official commercial register of the company must be kept at the legal address of the company in Poland.
At least one registered shareholder is required to register a company. There are no citizenship or residency requirements for the shareholder, therefore 100% equity ownership by a foreigner is possible. An official share register of the company must be kept at the company's legal address in Poland.
The required minimum share capital is 5000 PLN (approx. 1180 EUR), with the lowest possible share value being 50 PLN (~ 12 EUR).
The company that registers a trademark receives an exclusive right of use combined with legal protection. In this way, the brand itself can gain value, which can grow over time depending on the value and reputation of the brand. The trademark owner can prevent the use of a similar trademark for a similar business purpose if an unauthorized third party makes such an attempt. Therefore, registering a trademark is very handy when you want to prevent a competitor from using a similar mark to identify their products or services.
The trademark owner has the right to use the well-known symbol ®, which makes it clear that no other company can use this trademark as it is already registered and legally protected.
Registering a trademark can also give you the opportunity to enter into franchise agreements and receive a share in the use of the trademark by the contractors. In this way, the formation of a chain becomes possible.
However, registration may be rejected if it does not meet certain requirements. In particular, the requirement of distinctiveness means that, for example, words describing a company's goods or services are too general, which means that they cannot be registered as a trade mark.
In order to start a business, you need to register a company. However, there are many questions and issues to consider during the business formation process such as: etc. Confidus Solutions is here to sort it all out.
Before you even create the documents, you need to make two decisions to determine how to proceed: In which jurisdiction will you incorporate your company? This is the main factor that determines a variety of things such as: B. the incorporation procedure, the required documents and the taxes that your company has to pay. Below is a directory that will help you select the best possible jurisdiction based on one of several criteria.
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