Germany takes a different route from its neighbours: instead of a tax relief, it pays business angels a direct, tax-free grant. The INVEST — Zuschuss für Wagniskapital programme, run by the federal office BAFA, reimburses part of the purchase price when a private investor buys new shares in a certified young innovative company.
Be careful with the numbers you may read elsewhere. Many sources still quote a 25% grant; that rate ended in March 2024. Under the current directive the acquisition grant (Erwerbszuschuss) is 15% of the eligible investment — our verification confirmed this against the official programme bodies. The minimum eligible investment is €10,000, the shares must be held for at least three years, and each investor has a lifetime INVEST budget of €100,000 in grants. On a successful exit after the holding period, a separate exit grant of 25% of the gain compensates the tax due on the sale — an unusual and often overlooked sweetener.
Two features stand out internationally. First, eligibility is EEA-wide: the investor must be an adult with their main residence in the European Economic Area — not necessarily in Germany — investing in a BAFA-certified, German-registered young company. Second, and urgently: the current directive runs to 31 December 2026, and complete grant applications must reach BAFA by that date. Sequence matters too — applications must be in place before contracts are signed. Anyone planning a German angel investment this year should plan around that deadline and confirm whether the programme is renewed.
The boundary mirrors the series: the grant supports German startups. It offers nothing on a UK investment — but its EEA-resident eligibility makes it a genuine option for internationally mobile investors with a German venture in view.
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