German Parliament Approves Law to Boost Private Investment in Start-ups and Infrastructure

On December 19, 2025, the German Bundestag approved the Standortfördergesetz (site promotion law), which the federal government introduced on September 10. The law aims to increase private investment in Germany by improving financial market access for small businesses and start‑ups, enhancing tax incentives for infrastructure and renewable‑energy projects, and reducing administrative burdens. According to Finance Minister Lars Klingbeil, the measure will encourage investment in the German economic base, especially via venture capital and infrastructure funds. Key provisions include streamlined capital‑market access, adjustments to the Investment Tax Act and Capital Investment Code, and the elimination of various reporting and notification obligations. The legislation follows earlier government initiatives such as the 500 billion‑euro special investment fund.

https://www.bundesregierung.de/breg-de/aktuelles/standortfoerdergesetz-2383774

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