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German Investment Funds Industry Is Thriving

Written by: Bridgewest

German-investemnt-funds-industry-is-thrivingThe investment funds sector is currently one of the most attractive branches of the financial industry in Germany. Investment funds have attracted over 11 billion euros during the summer months in 2015. You can find out from our consultants in company registration in Germany what the most important investment funds are at the moment.

German fund industry one of the most prolific in the country

The German Investment Funds Association BVI issues monthly reports on the situation of the industry. All reports from the last months have shown an increase in the investment funds industry, transforming it into one of the most successful sectors in the country. German investment funds have attracted over 11 billion euros during July and reached a record level of approximately 125 billion euros until the end of September.

Mutual funds have been the most successful business vehicles, attracting around 75 billion euros in the first half of the year. Equity funds, real estate investment funds and money market funds have also reported around 7 billion euros together.

At the end of September, the investment funds market was led by the insurance companies in Germany which attracted 2.5 trillion euros. Among these, pension schemes and manufacturing companies recorded the largest amounts.

If you want to set up an investment fund in Germany you can request the services of our local agents.

New regulations for German investment funds

Taking into account the importance of this industry, the Government has renewed the legal framework of investment funds which mainly provides for the taxation of such business vehicles. Under the new legislation, which was enforced at the end of 2013, certain types of German companies would be applied a special tax regime. Among these, German open-ended and foreign professional investment funds would be taxed with no more that 30% of the funds’ total value. Closed-ended funds operated by corporations, on the other hand, would be taxed under the German Corporate and Trade Tax Acts. Retail funds, whether open or closed, will also be taxed under the new legislation.

For information about the new legislation on investment funds and for personalized accounting services, you can contact our German specialists in company formation.