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Some food for thought, a "grey area example" coming from the opposite direction compared to the above one: Inglourious Basterds. Filmed in Germany. Lots of German actors in significant roles. (And not complete unknowns, but instead big names - at least in Germany - like Schweiger, Brühl, Kruger...) Even a Shout-Out specifically catering to the German part of the international audience. (Winnetou!) But in spite of all this, it is of course first and foremost a Quentin Tarantino, and therefore American production. But still, you could argue it to be a German movie to the percentage of such-and-such.

Strictly speaking, both were part of the "Holy Roman Empire of the German Nation" from around 962 until 1806. Until the establishment of the (second) German Empire (Deutsches Reich) in 1870, Austria, Prussia, Saxony, Bavaria, et al. were considered as much "Germany" (or "the Germanies") as, say, Castile, Leon, and Aragon were considered "Spain" or Lombardy, Tuscany, and Sicily "Italy." Remember Germany as defined in Das Deutschlandlied: Von der Maas bis an die Memel, Von der Etsch bis an den Belt—that is, from the Meuse in Belgium to the Niemen in Lithuania, from the Adige in northern Italy to the Lillebælt in Denmark. When the song was written in 1841, every one of those borders could be justified, if only in rather a tortuous juridical manner as the English historically justified a claim to half of France or the French to much of western Germany.

Does it really matter? I don't think we'll have many works from Austria 1938-45 to discuss.