Why is Berlin the new place for Tech startups?

Why is Berlin the new place for Tech startups?

More and more startups are choosing Berlin as their EU HQ But why is Berlin the new hub for Tech startups?

With a population of 3.7 million inhabitants, the capital of Germany attracts 500 new startups per year. Berlin city offers great financial opportunities for startups and it’s becoming more interesting for them to be headquartered in Berlin rather than London or NYC.

Berlin is one of the cheapest cities in Germany and one of the most vibrant!

The standard of living (being 800€ for a single person in Berlin compared to NYC that is about 1100 USD), the price of the offices and the Talent are lower. For example, in 2020 the costs of the rental office are on average 19€/square foot in Berlin. On the other hand, in NYC this cost is nearly doubled. Berlin is becoming more and more attractive.


Everyone loves Berlin as it offers such an amazing cultural and dynamic environment, that it has becoming one of the favourite places to live in across Europe.

This means that a lot of Talent want to relocate or live in Berlin and enjoy the local life, while gaining access to great job opportunities.

This also drives entrepreneurs to start their companies in Berlin and benefit from a great ecosystem, which is a great place to begin a venture.

Another point to take into account is that if you’re from the Schengen space you don’t need a passport, only an ID. The measures are also more flexible for people coming from the US wanting to start a company.

Therefore the creation process of a firm in Germany (GmbH) is really simple, which makes Berlin even more attractive. In order to create a GmbH you need first to have some capital but you can partner with a local Director to obtain this. Besides there are no limits for associates to create a GmbH. Once you decide to create your firm, you need to fill in a  few forms with all the information, such as HQ, name of the company, departure funds…Followed by a signature in front of a notary and you’re set. Then the notary registers you to the Chamber of commerce. 


Do you need some help to create your Berlin hub from scratch? Are you looking to hire the first person on the ground in Berlin and you don’t know where to start? We can help you with that and offer full advice on setting up, salary guidelines, contract samples and strong insights on the local Talent pools. Contact us to know more. 



Talented International – John.murat@talentedint.com


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