Draft bill for the Location Promotion Act published

The German Federal Ministry of Finance has published the draft bill for the Location Promotion Act (Standortfördergesetz/StoFöG). The StoFöG aims to improve the framework conditions for private investment and strengthen Germany as a financial centre through tax incentives and the reduction of bureaucratic costs.

The draft law contains amendments to over 60 existing laws and regulations in the financial sector. Key components include the implementation of various EU directives, including Directive 2024/790 amending the Markets in Financial Instruments Directive and Regulation 2023/2859 establishing a central European access portal. The StoFöG is scheduled to come into force on 1 January 2026.

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