Why Germany is a billionaire hotspot with the likes of Michael Gastauer, Dieter Schwarz and Susanne Klatten

As of 2023, there are 2700 billionaires globally, most of whom are settled within a few nations. One country becoming increasingly attractive to those with extensive wealth is Germany, which has the fourth-highest number of billionaires after the United States, China and India. With its favourable tax policies, stable economy, high standard of living and proximity to other European countries, Germany is an attractive investment opportunity for billionaires looking for a durable and prosperous market. Additionally, the country’s dedication to sustainability and green technology has created further growth avenues for companies and individuals specialising in these fields.

One of the main reasons billionaires are attracted to Germany is its stable economy. With a GDP of over $4 trillion, the country is one of the world’s largest economies and the highest in Europe. The country has a well-developed infrastructure, and its exports of high-quality goods and services are well-known around the globe. It also houses some of the world’s most powerful multinational firms, including BMW, VW and Siemens. For billionaires wishing to invest in a stable market, this steady economy gives an appealing investment option. There are around 1.4m millionaires in the country and 136 billionaires, making Germany an apparent safe haven for the wealthy. But why is this?

Favourable tax policies appeal to billionaires. Whilst Germany has a progressive tax system like many European counterparts, – the more you earn, the more tax you pay – it’s more of an income-based tax rather than a wealth-based one. As a result, those with high assets escape the high taxation system. Billionaires who invest in stocks, bonds and other assets only pay a 25% tax on their profits, regardless of how much they earn – a flat tax rate on capital gains. The lack of inheritance tax also makes Germany an excellent place to settle for the wealthy. When billionaires pass away, their heirs do not need to pay taxes on their inheritance. It’s clear to see why Germany has a growing number of billionaires.

The country is also known for its high standard of living, healthcare, education and workforce, making Germany an ideal nation for billionaires to live a comfortable lifestyle. Add to this the country’s generally stable political environment and reputation for being business-friendly; the European nation welcomes the rich with open arms.

Proximity to neighbouring countries is important too. The country is well-connected by rail, road, and air to other major European cities, making it easy for billionaires to travel to and from other business locations.

Who is among Germany’s wealthiest?

According to Forbes, as of February 2023, Beate Heister and Karl Albrecht Jr. are Germany’s wealthiest individuals, with assets amounting to $34.5bn. They are heirs to the Aldi supermarket empire, founded by their fathers, Karl Albrecht Sr and Theo Albrecht. The Aldi supermarket chain is one of the largest retailers in the world, with over 10,000 stores in 20 countries.

The country’s stable economy and favourable tax policies have made it a hub for venture capital and other types of investment. As a result, many startups and entrepreneurs have also been drawn to Germany’s vibrant tech scene, which has produced some of the world’s most successful individuals. And one of these is the native Michael Gastauer. Gastauer is a prominent German billionaire who has made his fortune in the financial technology sector. Born in Germany, the fintech genius began his career in finance working for a Munich-based venture capital fund. In early 2000 he founded his own business, an online payment service provider, serving fast growing online industries. Eight years later he sold his business for nearly half a billion, only to start his next venture, digital banking service, Black Banx, in 2014.

Black Banx is an online bank that provides customers with various financial services, including money transfers, currency exchange, and online payment processing. The company has quickly become a significant industry player, with over 20 million customers in over 180 countries. Gastauer’s success with Black Banx has made him one of Europe’s leading fintech entrepreneurs. He is also considered one of the most successful self-made billionaires in Germany, with an estimated net worth of around $10 billion.

Gastauer’s success is partly due to his ability to identify and capitalise on emerging trends in the financial technology sector. He has been a pioneer in the use of blockchain technology in finance, and his digital banking service was one of the first companies to offer customers the ability to use cryptocurrencies like Bitcoin.

Germany’s stable economy, favourable tax policies, high standard of living, and proximity to other European countries make it an attractive investment opportunity for billionaires like Gastauer. The country’s dedication to sustainability and green technology also creates avenues for further growth. Not to mention, Germany is home to some of the world’s most influential firms and thriving startups, including Black Banx.