3 ms·

One important difference between Brandenburg and Saxony that I'm guessing may have played a role: There is a component of the corporate tax called "Gewerbesteu

One important difference between Brandenburg and Saxony that I'm guessing may have played a role: There is a component of the corporate tax called "Gewerbesteuer" which, in Brandenburg, is set at city-level and differs widely from city to city, whereas in Saxony it is high across the board. My guess would be that there must have been a mayor somewhere in Brandenburg that made them an offer that no mayor in Saxony could compete with.

dx034 7y ago
It's set at a city/regional level in all of Germany, there are just very few areas that offer very low taxes. Those tend to be close to large cities to get companies to move headquarters out of the city. Hamburg and Frankfurt also have areas with one of the lowest tax rates just outside of city limits (not sure if Munich has one). In the end, I'm not sure if it makes such a big difference, other incentives, land prices and availability of talent probably outweighs this.
- stakhanov 7y ago
  ...but in the countries of the former east there is barely any variation, whereas in Bavaria, Baden-Württemberg and Brandenburg there is massive variation. Also, you'd expect that in the countries of the former east, taxes would be lower to attract more business activity, but the opposite is the case, since those tend to have more left-leaning leadership.