Inbound Tax Consulting

Comprehensive tax advice for foreign investors from market entry to exit

When a company decides to enter a new market, it faces numerous operational and strategic challenges. Beyond economic factors, the legal and tax frameworks of the target jurisdiction play a critical role in determining the success of your investment.

While many entrepreneurs predominantly focus on the business strategy and operations, tax implications of the investment are frequently underestimated. Yet:

• High compliance requirements can strain resources,
• Missing tax strategies can directly impact cash flow and ROI,
• Reactive damage control after implementation is rarely ideal.

Without proper planning, companies may face unexpected tax payments or penalties in tax audits. Thus, it is crucial to establish robust tax compliance mechanisms and a future-proof tax structure from the outset.

To avoid costly missteps, your company’s vision should be aligned with a tailored tax strategy before entering a new market which equally applies to:

• Greenfield investments and
• Acquisitions of existing companies.

Key areas requiring careful planning particularly include:

• Corporate and financing structures,
• Transfer Pricing arrangements between group companies,
• Efficient (cross-border) offsetting of profits and losses.

We also consistently emphasize the importance of an early consideration of a potential exit strategy to preserve your flexibility in the event of:

• Future company sales,
• Succession planning,
• Market withdrawal.

Due to our extensive experience in supporting inbound clients, our interdisciplinary team of tax advisors and lawyers knows that there is no ‘one-size-fits-all’ approach. Your consulting needs and your tax strategy are as individual as your company.

With LOHR+COMPANY GmbH as your trusted partner, you benefit from comprehensive and personalized advice for legally secure and efficient investments in the German market.