Frankfurt

Map

Overview

The city of Frankfurt (traditionally known as Frankfurt am Main) is located in central Germany, in the state of Hesse, along the banks of the River Main. It has a population of 670,000 in the central area, and 2.6 million people live in the greater metropolitan region. Its territory covers 248km2, making it the fifth largest city in Germany, after Berlin, Hamburg, Munich and Cologne.
The total area of Frankfurt is divided into 16 Ortsbezirke, or sub-districts, each with a separate committee and a chairperson who is responsible for the running of local services in each of the areas. Germany was a founding member of the European Union, and fully adopted the euro (EUR) system in 2002, which replaced the old Deutsche Mark (DM).

Economy

Frankfurt is not only an area of central economical importance in Germany, but in Europe too. Its economy is based around the service sector, particularly the financial and banking industries. Frankfurt's modern skyline is filled with prestigious domestic and foreign owned banks, and has earned it the nicknames of mini-Manhattan and the city of banks. The XETRA stock exchange is the second largest stock exchange in Europe, and it is located in the Heart of Frankfurt. Other major banks in the area include, the European Central Bank, and the German Federal bank.
The city is a major contributor to Germany's GDP, and one of the richest cities in Europe based on the high GDP per capita (PPP) rate of $68,751 (2009). Frankfurt is also an area used for large business conventions, due to is central positioning and excellent infrastructure. Some of the worlds largest trade-fairs are held in this city, most in the Messe Frankfurt, which is the third largest convention centre in the world, and employs over 1400 people.

Infrastructure

The city is served by the largest and busiest airport in Germany: Frankfurt International Airport, which is located just 12km away from the central business district. The airport handles 54 million passengers annually and offers flights to 265 domestic and international locations. Construction of a fourth terminal is currently underway to help ease the increasing passenger load, which is set to be completed in 2011.
Frankfurt is also home to Germany's busiest railway station, Frankfurt Hauptbahnhof, which handles 350,000 passengers daily. It is integrated with the public transportation system and offers a number of services such as trams, S-Bahn, U-Bahn and the high speed ICE trains which allow quick transport to other major cities in Germany.
Frankfurt has invested heavily into improving the transportation system and integrating more environmentally friendly transport options into the city. This includes the introduction of a bicycle system which is operated by Deutsche Bahn. A simple phone call allows passengers to rent a bicycle from EUR 0.06 a minute, and there are numerous bicycle lanes throughout the city. The road system is also well developed, with an interchange located within close proximity to the airport, allowing for easy domestic travel, as well as linking to Germany's neighbouring countries.

Workforce

The German workforce are known for their efficiency, and the workforce is Frankfurt is no exception. The growing service sector has attracted a large number of professionals from both Germany and other countries in Europe. It is a multi-cultural city, with over 30% of the population holding a foreign passport, and many people hailing from Eastern Europe, North Africa and Turkey. The official language for Frankfurt is German, with many residents speaking English. Frankfurt was voted the 7th best city in the world in terms of the number of languages spoken by the current workforce (World Cities Monitor 2010).
Frankfurt, like the rest of Germany, has a strong and structured education system, which allows students to focus and develop their talents, either by studying in a more traditional manner for university entry, or by taking a more vocational and practical route. There are two major Universities located within the city centre: the Frankfurt University of Applied Sciences and the Johann Wolfgang Goethe University. Both offer internationally accredited degree programmes and have a combined student population of 47,000 many of which come to study from international countries.

Business Costs

Out of Germany's 5 largest cities (Berlin, Frankfurt, Hamburg, Munich and Dusseldorf) Frankfurt has the second highest office rental rates, with office space costing an average of $54.29 per square foot per year. Despite this office rental costs are comparitively lower than rentals in Paris CBD and London (West-End) which cost an average of $93.14 and $119.40 per square foot per annum respectively (Cushman and Wakefield 2010). According to the 2010 World cities monitor report, Frankfurt is the third best city location in the world to do business in, based on factors such as infrastructure, location and the availability of a qualified workforce.
Any individuals residing in the country for more than 6 months of the year are classed as German residents, and are required to pay tax on both income earned in the country and abroad. Non-German citizens are only required to pay tax on income earned in the country. German corporate taxes are levied on both a federal and municipal level. The federal rate stands at 15%, with additional municipal rates and a tax surcharge bringing up the corporate tax rate to 30% - 33%. Individual tax rates are based on tax brackets which vary depending in the income earned. Any individuals earning less than EUR 7,834 are exempt from paying tax on income. Any individuals earning over EUR 250,402 are required to pay 45% tax. There are numerous tax deductions available to ease the tax burden. Germany has two levels of value added tax: 19% and 7%, with the lower rate being available for certain foodstuffs. All overseas exports are exempt from value added tax.
There is no national set minimum wage rate for workers in Frankfurt, however some sectors have low set rates based on a collective bargaining system. Generally national average wages in Germany are lower than average wages in Luxembourg and London.

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