Incentives programs in Germany
Incentives programs in Germany are available through different public funding instruments and for different funding purposes.
Each incentives program defines industries as well as forms of investments (e.g. greenfield projects or expansions) eligible for funding.
Each program has also a set of criteria (such as company size, planned investment project location, etc.) which determine individual investment project incentive levels. Foreign investors are subject to exactly the same conditions available to German investors.
Incentives support ranges from cash incentives to labor-related and R&D incentives. Find out how your investment project can benefit from public funding.
Regional economic development program North Rhine-Westphalia
North Rhine Westphalia offers for settlement projects with significant regional economic effects in the structurally weak regions of the state Regional Economic Development Program North Rhine Westphalia (RWP).
Who receives support?
Commercial enterprises in special promotion areas of the state. The promotion areas are defined as as C1, C2 or D-areas; please refer to the map on the next page.
What is supported?
“Significant regional economic effects” means:
- Investments secure or create jobs and have an investment volume of at least 150.000€ (as alternative: wage cost subsidies are possible for small and medium-sized enterprises),
- Special investment projects in connection with depreciation,
- Investment projects with R&D and climate protection reference (transformation projects)
What form does this support take?
Support is granted in the form of non-repayable subsidies.
How much support is provided?
In C1-areas | In C2-areas | In D-areas |
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C- and D-subsidy-areas in North Rhine-Westphalia SINCE 2022
Transformation projects
Subsidy rates for transformation projects in all funding areas can reach up to 50% for environmental protection effectsand up to 40% for energy efficiency effects. Please note that one the additional investment cost are eligible. The subsidiary rates for the own energy production from renewable energies amount to 50%. For special investments in the field of key technologies grants of up tp 40% are possible until December 31, 2025. All these subsidiary rates vary depending on the size of the company (TCTF).
Example RWP calculation
A medium sized company invests 40 million € and creates 45 jobs. According to NRW-provisions, the calculation equivalent of each job is 600,000 €. 45 jobs × 600,000 € = 27,000,000 €. This is the base value for the calculation, as the investment volume in this case exceeds this amount. As the company will invest at a location in a C1-area, 20 % can be applied = 5.4 million € incentive amount. In case the same company would invest in a D-area, the incentive amount would be 2.7 million €, as in D-areas only 10 % of the eligible amount can be disbursed.
Contacts
Applications have to be submitted to NRW.BANK before the start of investment.
NRW.Global Business can accompany the application und procedure.
NRW.Global Business GmbH
Völklinger Str. 4
40219 Düsseldorf, Germany
Contact
Trade & Investment Agency of the German State of North Rhine-Westphalia
NRW.BANK Development Programs
NRW.BANK offers a wide range of financial support for existing companies, business start-ups and to ensure company survival: investment grants, subordinateed loans, venture capital and releases form liabitlity.
