Germany is a social market economy with a large capital stock, a highly qualified workforce, a high level of innovation and low levels 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 influences the German real estate market?
The volatility of the real estate market can be explained by numerous macroeconomic and social factors in the country. Due to the zero interest rate policy of the European Central Bank, mortgage interest rates remain at record lows and offer historically favorable financing conditions. In addition, the quantitative easing (QE) policy being pursued by the ECB is leading to higher liquidity, increasing investment pressure as investors seek potential investment opportunities with above-average returns in relatively safe sectors. QE is also weakening the euro, making the German real estate market even more attractive to investors from outside the eurozone.

New projects and construction activities lag far behind the growing demand, which leads to rising property prices. The German Property Index (GPI), which measures the return on all real estate investments in Germany, reached 14.7% in 2016, a record level since German reunification. The demand for high-quality real estate is increasing due to the demographic and overall economic development in Germany – ongoing urbanization and growing metropolitan areas. Germany is experiencing a positive reversal in birth rates and other demographic factors. The birth rate rose from 1.39 to 1.50 per woman between 2011 and 2015. In addition, Germany has a persistent migration surplus, which can partially compensate for the demographic imbalance.

Commercial real estate, especially office space, is also in high demand due to record employment and the low unemployment rate, and is also benefiting from increasing purchasing power and high consumer spending. Logistic and warehouse real estate is crucial for growing businesses and therefore in high demand due to the increase in wholesale and retail trade. Below you will find an overview of the most important sectors of the German real estate market.

Residential real estate
The residential real estate market was able to recover from the financial crisis and market stagnation in the years after 2009. Residential property construction projects have risen steadily in recent years, resulting in around 277,000 completed residential units in 2016. 2015 Residential real estate With a total investment of EUR 170 billion, 60% of the total construction volume in Germany went into construction. Despite a significant increase in building permits issued (375,400 permits issued in 2016) and a record level of completed projects, demand still significantly exceeds the volume of completed residential projects.

Future prospects call for applications for new building permits to increase to 272,000 units per year by 2020 and further slow down to 230,000 units per year by 2030. Meanwhile, the number of residential properties could increase to 380,000 units in the short term due to increasing immigration.

However, the demand for residential real estate differs greatly from region to region. In some regions, the gap between demand and supply could close soon, especially in eastern Germany. In some regions, especially in prosperous metropolitan areas, the available housing units will remain very scarce.

Along with the insufficient supply, the asking rents have risen accordingly. In large cities in particular, the trend towards rising rents is quite dynamic. For example, the annual growth rate of residential rents in Germany has been around 1.7% since 2004. In the meantime, rents in Berlin and Munich have risen by 3.9% and 3.5% annually, respectively. Both cities recorded an annual growth in purchase prices of 6% in this real estate sector.

Office properties
Similar to residential real estate, the office real estate market is in good and future-oriented shape, mainly due to a positive migration balance and historically low unemployment rates. In 2016, around 3.9 million square meters of office space was let 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.

As more jurisdictions open up to foreign trade, companies can gain access to a large pool of resources abroad. They can establish relationships with foreign partners and relocate their production to foreign locations or simply export their products to new markets. IT and software development companies are also trying to capitalize on moving production to foreign jurisdictions.

In general, the main advantages to offshore software development is lower cost compared to home country. For example, the cost of developing the exact same software in India is 50% lower than in the US. The savings generally come from lower labor costs, but offshoring IT and software production offshore can also expand the company's access to a broader pool of workers with higher skills and expertise. This could explain why 50% of America's Fortune 500 companies use offshore IT and software development. Let's look at some of the jurisdictions where opening a software development company might be more beneficial compared to others and discuss the reasons why.

India
India has long been one of the preferred software development outsourcing destinations for leading multinational companies around the world. This means that one of the biggest advantages of choosing India for your IT and software development business would be multinational demand for outsourced software development services. Meanwhile, the company would benefit from relatively lower labor costs, a broad pool of skilled workers, and a business-friendly environment with the government encouraging start-ups and small businesses. Furthermore, the IT industry is expected to grow in the early to mid teens in the coming years due to favorable political and economic initiatives by the Indian government.

United Kingdom
London was recently described as the city with the most opportunities for business and took first place in terms of technology readiness. While low labor costs are not among the benefits of starting a software development business in London, there are several other benefits that could offset relatively higher wages. Numerous hubs and incubators offer young start-ups and small companies an environment with all the necessary functions and support for less than 300 euros a month. The government is also committed to supporting the software development and technology sectors with organizations such as Tech City UK and Innovate UK with the aim of accelerating the growth of IT companies. Various tax benefits are now available to IT and software development companies in London. Other benefits to consider include a skilled workforce and high-speed Internet access.

Poland
Eastern Europe is becoming more and more attractive for IT and software development companies, with Poland ranking as the number one Eastern European country. While Poland may not offer as low labor costs as India, it can offer other advantages such as proximity to Western Europe and the ability to find common working hours with the rest of the world. Poland also shares a cultural affinity with the western world as well as other eastern countries. It is also believed to offer better product quality and business environment compared to lower cost targets for software development companies.

Each continent has additional jurisdictions to consider for registering an IT company - each with their own benefits and characteristics:

America: Brazil, Argentina and Chile;
Asia/Pacific: China;
Europe: Romania, Belarus and Ukraine.
The above countries have large enough populations to have a broad labor pool and good education systems to produce skilled software developers. The business risks in these countries are manageable and the costs are reasonable compared to the USA, Canada and Western Europe.

It is important to remember that while a particular jurisdiction may be considered the best place to start an IT business for one entrepreneur, it may not be suitable for another. Consider the necessities your business is most interested in. This can be language, geographic location, regulation of specific activities, skilled labor, or cost.

In terms of political and civil liberties, Ukraine is 2nd. Citizens in Ukraine experience partial freedom. While the majority of citizens in Ukraine are able to exercise their free will to some extent, some political engagement may be restricted and certain sections of the population may be barred from certain freedoms or expressions of opinion. Enterprises of Ukraine are 5 in terms of economic freedom. Citizens in Ukraine are not considered free when it comes to their economic choices. The government prohibits citizens from all economic activities, and some illegal business activities are punishable by imprisonment or even death. Investors should avoid countries that are not economically free as the risks do not justify any potential gain. In terms of journalistic freedom, the media of Ukraine are in a 4. In Ukraine, journalists are in a very serious situation. Censorship rules all publications and the government controls most of the media. Journalists who express opinions against the government can be punished with fines, imprisonment or death.

The legal structure of your business is among the most important factors that will greatly affect you and your business throughout its existence. Therefore, it is important to carefully weigh all the pros and cons before starting the business, as your choice of business structure will have a major impact on how you run the business, how you pay taxes, and who controls your business. The key is to understand which legal form offers your company the greatest advantages on your way to achieving organizational and personal goals. In general, there are four main factors to consider before the company formation process: limitation of personal liability, taxes, ease of transferability of shares and registration of new owners, and finally – investor expectations.

When setting up a company in Belgium, you have many options to choose from when it comes to the legal form of your company. Different types of business structures in Belgium suit a variety of business needs. Both domestic and foreign investors can choose the legal form that best suits the needs of a particular company. In addition, those who choose to register a company in Belgium can benefit from a relatively quick and straightforward process.

Belgium has a wide range of possible business forms, each with their own advantages and characteristics. While certain business types are more suited to large corporations, other types are being developed to meet the needs of small and medium-sized businesses. In general, small and medium-sized companies can benefit from choosing a simpler legal form, especially if the company does not plan to be listed on the stock exchange. To make the right choice, entrepreneurs should consider the amount of capital they wish to invest in the early stages of the business and the shareholder responsibilities associated with each type of business.

Limited Liability Company (BVBA/SPRL)
This type of structure is one of the most popular legal entities and is generally used for small and medium-sized businesses that are privately owned. Before choosing this type of corporate structure, investors should consider that there are certain aspects that make them less flexible compared to a public company. For example, it is not possible not to issue either convertible bonds or participation certificates, nor is it possible to pay interim dividends. In general, the main advantages of PLLC are as follows:

Only two people required for installation (there is also an exception when only one person is needed);
Owners of the business are only liable for the amount actually contributed;
Relatively low minimum capital.
The required minimum capital is EUR 18,550; it must be paid by the founders of the company, who may be individuals or companies, Belgian citizens or non-citizens, residents or non-residents of the country. Each issued share must be paid up at least 20% before incorporation and the minimum amount is EUR 6,200. If a company has only one founder, at least EUR 12,400 must be paid in. All shares in this company are registered shares and must be entered in the share register. Certain restrictions apply to the transfer of Shares.

Public limited company (NV/SA)
This form of business is usually chosen for larger companies, since the minimum capital is significantly higher than for a limited liability company. It is also advantageous to choose this type of structure for a company that needs a lot of capital, since the company can attract external capital. The minimum capital is at least EUR 61,500 and at incorporation at least 25% of each share must be paid up with a minimum aggregate amount of EUR 61,500.

Unlike PLLC, Public Limited Liability Company shareholders do not play a significant role as at least three directors must be appointed to run the company. If there are only one or two shareholders, it is sufficient to appoint only two directors. According to Belgian company law, when a company is appointed director, a permanent representative must be appointed.

Following documents and other information are required upon incorporation of Public and Private Limited Liability Companies:

Full details of the founders’ identities;
A financial plan for the first two years;
Bank certificate approving the capital;
Founders’ powers of attorney;
Letter of acceptance from the directors;
Passport copies of the of the directors;
Articles of Association;
Act of incorporation;
Minutes of the first general meeting to appoint directors;
Minutes of the first board meeting for certain business decisions;
Registration with the tax administration;
Registration with the trade registry or filing with the commercial court;
Publication in the Official Journal;
Registration with the social security and VAT administrations.
Limited Partnership (SCS/GCV)
Limited Partnerships have two types of partners with different legal regimes. General partners are jointly responsible for the partnership’s liabilities. General partners are also the ones who manage the company. Meanwhile, limited partners are only responsible for the capital they have contributed towards the Limited Partnership. They also do not acquire a trader’s status and are not involved in the management of the business. There is no requirement for a minimum capital to incorporate a Limited Partnership and also less administrative formalities are required. It still remains less common due to the full liability of general partners.

Other types of business structures in Belgium include:

Cooperative with unlimited liability (SCRI/CVOA);
Cooperative with limited liability (SC/SCRL – CV/CVBA);
General Partnership (SNC/VOF);
Sole Proprietorship.

Sweden is considered a developed nation. A nation's level 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, Sweden is able to provide its citizens with 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. Every year, Sweden exports about US$181.5 billion and imports about US$158 billion. 6.5% of the country's population is unemployed. The total number of unemployed in Sweden is 648,876. In Sweden, 14% of the population lives below the poverty line. The percentage of citizens living below the poverty line in Sweden is low, indicating a stable economy. Investors should consider Sweden a safe place to invest and do other financial ventures. Government spending on education is 6.6% of GDP. The country's Gini index is 24.9. Sweden experiences a high level of equality. The income differences between citizens are only slightly significant. Sweden has a Human Development Index (HDI) of 0.898. Sweden 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 Sweden is 1.36. Due to the strong presence of the law enforcement authorities and the high level of social responsibility, Sweden is very safe in international comparison. The strength of the rights index for Sweden is 6. Overall, it is considered to be quite adequate – bankruptcy and collateral laws are able to protect the rights of borrowers and lenders at least decently; Credit reports are usually sufficient and generally available.

Currency
The currency of Sweden is Swedish Krona. The plural form of the word Swedish krona is kronor. The symbol used for this currency is kr, abbreviated to SEK. The Swedish krona is divided into ore; there are 100 in a crown.

Credit rating
The depth of credit information index for Sweden is 5, which means that the information is usually sufficient and easily accessible, although occasionally some necessary details may be missing. According to the rating agency S&P, Sweden has a credit rating of AAA and the prospects for this rating are stable. According to the rating agency Fitch, Sweden has a credit rating of AAA and the prospects for this rating are stable. According to the rating agency Moody's, Sweden has a credit rating of Aaa and the prospects for this rating are stable.

Central bank
In Sweden, the institution that manages the government's currency, money supply and interest rates is called the Bank of Sweden. Locally, the Swedish central bank is called Sveriges Riksbank. The average interest rate on deposits offered by local banks in Sweden is 0.79%.

National debt
Sweden has a public debt equal to 38.6% of the country's gross domestic product (GDP) as estimated in 2012.

Tax information
Corporate tax in Sweden is 22%. Personal income tax ranges from 31% to 59.7% depending on your specific situation and income level. VAT in Sweden is 25%.

Finances
The total Gross Domestic Product (GDP) valued as Purchasing Power Parity (PPP) in Sweden is US$450517 billion. The gross domestic product (GDP) per capita in Sweden, calculated as purchasing power parity (PPP), was last at 45 million dollars. PPPs in Sweden are 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 Sweden is 579,680 billion. Based on this statistic, Sweden is considered as a large economy. Countries with large economies support a variety of industries and businesses and offer numerous opportunities for investment. Large economies support a significant financial sector, making it easy to organize investments and financial transactions. It should be very easy to find good investment opportunities in Sweden. The gross domestic product (GDP) per capita in Sweden was last at 58 million dollars. The average citizen in Sweden has very little wealth. Countries with very low wealth per capita often have lower life expectancies and a dramatically lower quality of life for their citizens. In countries with very low levels of prosperity, it can be very difficult to find a highly skilled workforce as it is difficult for citizens to obtain the education required for specialized industries. However, labor can be found at very low rates compared to countries with higher wealth per capita. The annual GDP growth rate in Sweden averaged 2.1% in 2014. According to this percentage, Sweden is currently experiencing modest growth.