Introduction

It’s a fantastic chance to grow your business by opening a new location in Germany; however, you will need to develop an accurate understanding of how much it will cost to enter the German Market so you can adequately budget and plan for this new venture. Budgeting appropriately will also allow for continual growth and compliance with local laws. 

This guide details the amount of money required to set up a business in Germany, what your operational costs will be, and how you can optimize your finances to get started with confidence.

1. Initial Setup Costs

The first step in entering the German market is establishing a legal entity. Costs vary depending on the chosen structure:

GmbH (Limited Liability Company)

• Notary fees: ~€400–€800
  
• Commercial register entry: ~€150
  
• Mandatory share capital: €25,000 (half paid before registration)
  
• Other costs: legal advice, translation fees, opening a bank account
  

Total approximate setup cost (excluding capital): €4,000–€5,000

UG (Mini GmbH)

• Minimum capital: €1–€5,000
  
• Lower notary and registration fees
  
• Ideal for startups testing the market
  

Branch Office

• Lower setup fees than GmbH or UG
  
• Registration and legal fees vary depending on the parent company
  

Source: SandsConsult 2025

2. Operational Costs

Once the company is formed, operational expenses are the next major consideration:

• Office Space & Utilities: Rent ranges from €15–€35 per m² in major cities like Berlin, Munich, or Frankfurt.
  
  
• Staffing & Payroll: Average monthly salary in Germany is €4,100 (gross) with social contributions. (statista.com)
  
  
• Marketing & Sales: Trade fairs, digital campaigns, and localization costs can range from €10,000–€50,000 depending on scale.
  
  
• Legal & Accounting Services: Ongoing compliance and bookkeeping fees ~€500–€2,000/month
  

Careful financial planning ensures your company can operate sustainably during the first 12–18 months.

3. Industry-Specific Costs

Some industries have additional costs:

• Healthcare & Pharmaceuticals: Licensing, certification, and compliance with EU and German standards
  
  
• Manufacturing & Industrial: Machinery, import duties, and certification fees
  
  
• Technology & Software: Data privacy compliance (GDPR) and cybersecurity measures
  

These should be included in your initial budgeting to avoid surprises.

4. Funding & Incentives

Germany offers several programs to support foreign investors:

• Grants & Subsidies: Available for R&D, green tech, and innovation projects
  
• Tax Incentives: Reduced corporate tax for certain regions or industries
  
• FDI Support: Germany Trade & Invest (GTAI) provides free consultation and market data
  

Leveraging these incentives can reduce upfront costs and increase ROI.

5. Tips for Cost Optimization

• Start with a UG if capital is limited, then convert to a GmbH
  
• Use shared office spaces or co-working hubs for early operations
  
• Partner with local distributors instead of establishing full logistics initially
  
• Hire consultants for compliance to prevent costly legal errors
  

Conclusion

To assure your success when expanding into Germany, it is essential to understand how much it will cost to enter the market. Knowing the costs of starting up and running your business, the costs of complying with German legal requirements, and those of operating in a German industry will enable you to effectively allocate your resources and minimize your exposure to risk.

Expandeers assist companies in developing budgets, establishing timelines, and timely executing on their German market entry efforts. You’ll find this guide supports our pillar blog and other cluster guides that can help create a complete market entry strategy, including market research, set up and operations.