Where to Start Your Business in Germany
10 Top German Cities for Business
Germany is Europe’s economic engine, a magnet for entrepreneurs, startups, and international investors alike. With world-class infrastructure, a highly skilled workforce, and one of the strongest economies globally, Germany offers a stable and lucrative environment for doing business.
But which German city is best for business in 2025?
In this guide, we explore the top 10 German cities for business, offering a snapshot of each city’s strengths, industry focus, and strategic advantages. Whether you're launching a tech startup, entering the manufacturing space, or seeking a dynamic base for your EU operations, this list will help you make an informed choice.
Nexus-Europe GmbH helps foreign entrepreneurs in choosing the best German city for their needs and building a tailored Business Operations & Compliance Roadmap. We are your one-stop solution to establish your company and relocate to Germany through business.
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Berlin for Business: A Capital of Innovation and Diversity
Population: ~3.8 million
Average Gewerbesteuer (business tax rate): ~14.35%
Key industries: Tech, creative, startup ecosystem
Berlin isn’t just the capital of Germany, it's the epicenter of Europe’s startup culture. Known for its creative energy and affordable cost of living (compared to other capitals), Berlin for business means access to tech talent, international investors, and a dynamic market. The city is a magnet for SaaS startups, fintech disruptors, and digital media ventures.
Its airport and robust rail system connect Berlin to every major European city, making it ideal for businesses with international ambitions.
Munich for Business: Engineering Excellence and Wealth
Population: ~1.5 million
Average Gewerbesteuer: ~17.15%
Key industries: Automotive, biotech, engineering, finance
Known for its precision and prosperity, Munich for business offers access to some of the world’s leading engineering minds. Home to global giants like BMW and Siemens, Munich is a powerhouse of innovation and R&D. While the cost of living is high, so is the return, especially in high-tech and scientific sectors.
The city’s international airport and proximity to Austria and Switzerland make it a strategic business base in southern Europe.
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Frankfurt for Business: Germany’s Financial Pulse
Population: ~770,000
Average Gewerbesteuer: ~16.1%
Key industries: Finance, legal, consulting, logistics
If your company operates in finance or professional services, Frankfurt for business is a natural choice. Hosting the European Central Bank and numerous international banks, Frankfurt is the beating heart of German finance.
With excellent air connections via Frankfurt Airport (Europe’s fourth busiest), and being a logistics hub, this city is ideal for companies needing fast, global access.
Hamburg for Business: Germany’s Gateway to the World
Population: ~1.9 million
Average Gewerbesteuer: ~16.45%
Key industries: Maritime, logistics, media, renewable energy
Hamburg for business means proximity to Germany’s largest port and one of Europe’s most important trade hubs. It’s a global logistics giant, especially attractive for companies involved in shipping, trade, and renewable energy.
The city also has a flourishing media and publishing sector and offers seamless maritime connections for export-oriented businesses.
Cologne for Business: Creative Capital with Tech Appeal
Population: ~1.1 million
Average Gewerbesteuer: ~16.62%
Key industries: Media, tech, R&D, insurance
With a rich cultural backdrop and strong academic institutions, Cologne for business is especially appealing to companies in media, technology, and research sectors. It’s also a key hub for insurance and finance services.
Its central location on the Rhine makes it a strategic point for companies with pan-European goals, while the vibrant lifestyle attracts young talent.
Stuttgart for Business: Where Industry Meets Innovation
Population: ~640,000
Average Gewerbesteuer: ~14.7%
Key industries: Automotive, manufacturing, robotics, AI
As the home of Mercedes-Benz and Porsche, Stuttgart for business is synonymous with automotive excellence. But beyond cars, the region is a leader in advanced manufacturing and cutting-edge engineering.
Its deep R&D culture and proximity to global suppliers make Stuttgart a great choice for industrial companies seeking long-term growth and innovation.
Düsseldorf for Business: Fashion, Finance, and Foreign Investment
Population: ~620,000
Average Gewerbesteuer: ~15.4%
Key industries: Fashion, telecommunications, consulting
Düsseldorf for business combines elegance with economic strength. It’s known for hosting international trade fairs and offers excellent connections to Asian markets, particularly Japan.
Its strategic location in North Rhine-Westphalia, Germany’s most populous state, and robust corporate infrastructure make it a popular location for headquarters and regional offices.
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Leipzig for Business: East Germany’s Rising Star
Population: ~620,000
Average Gewerbesteuer: ~16.1%
Key industries: Logistics, renewable energy, automotive
Fast-growing and cost-effective, Leipzig for business is attracting both startups and established corporations. Amazon and DHL have major operations here, drawn by its central location and transport links.
The city has reinvented itself as a hub for logistics and green energy — perfect for forward-looking enterprises.
Nuremberg for Business: Smart Manufacturing and Beyond
Population: ~520,000
Average Gewerbesteuer: ~16.34%
Key industries: Electronics, automation, IT
Nuremberg for business offers the benefits of a historic city with a forward-facing industry focus. It’s a stronghold for small and mid-sized enterprises (Mittelstand) in electronics and automation.
With good connections to Munich and Berlin and a growing startup scene, Nuremberg is a practical and efficient base for smart manufacturing ventures.
Bremen for Business: Logistics, Aerospace, and Maritime Strength
Population: ~570,000
Average Gewerbesteuer: ~16.1%
Key industries: Aerospace, shipping, food processing
Compact yet powerful, Bremen for business is perfect for companies in aerospace and maritime industries. Airbus has a major presence here, alongside a growing number of space-tech startups.
Its access to the North Sea and strong logistics infrastructure make Bremen an ideal entry point for export-led businesses.
Making Your Choice: Navigating the German Business Landscape
Germany isn’t just one market — it's a mosaic of regional economies, each with unique advantages. Choosing where to start your business in Germany depends on your industry, target market, and growth strategy. Whether you’re drawn to the innovation of Berlin, the industrial power of Stuttgart, or the global reach of Hamburg, the right city can define your business success in Europe.
And you don’t have to do it alone. Our company, Nexus-Europe GmbH, is here to help you launch, localize, and lead, wherever your German business journey begins.