For the thousands of Japanese companies in Germany, and for future investors, the new double tax agreement will bring significant advantages.
Germany is one of the most attractive locations for the direct foreign investment of Japanese companies. Since 2008, no other European country has recorded more Japanese greenfield investments than Germany.
Above all, Germany is of interest to Japanese companies as a result of it being the largest single market within the EU and because of its technological know-how. Outstanding infrastructure, an excellent technology cluster in the electronics, automotive and chemical industries, as well as well-trained skilled workers, engineers in particular, offer Japanese high-tech companies an excellent operating environment.
Yet, it is the United Kingdom which has attracted most Japanese investments by volume. But that might change soon. The new German-Japanese double tax agreement will rival the generous tax benefits the United Kingdom offers. It is just the next step in a centuries old trade relationship.
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