Residency By Business Establishment
Germany Business Residency
Professional Advisory by NTL International
Key Takeaways
- Legal Basis: Section 21 AufenthG (German Residence Act) for self-employment
- Typical Capital: €250,000+ recommended for GmbH formation (no statutory minimum)
- Initial Permit: Up to 3 years, renewable based on business success
- Permanent Residence: Eligible after 3 years for successful entrepreneurs (B1 German required)
- Citizenship Path: 5 years legal residence (as of June 27, 2024 nationality law reform)
- Family Inclusion: Spouse and children under 18 eligible through family reunification
- EU Market Access: Residence in Europe's largest economy with access to 450 million consumers
- Schengen Mobility: Travel throughout Schengen Area
About Germany
Germany, officially the Federal Republic of Germany, is a country in Central Europe and the most populous member state of the European Union. As Europe's largest economy and a global leader in manufacturing, technology, engineering, and innovation, Germany offers entrepreneurs access to a highly developed infrastructure, skilled workforce, and strategic position in the heart of Europe.
Location
Central Europe
Area
357,022 square kilometers
Population
Approximately 84 million
Capital
Berlin
Official Language
German
Currency
Euro (EUR)
Government
Federal parliamentary republic
Economy
€3.9 trillion GDP, EU largest economy
Legal Framework and Competent Authority
Governing Legislation
Section 21 of the German Residence Act (Aufenthaltsgesetz, AufenthG)
The German Residence Act (Aufenthaltsgesetz) establishes the legal framework for entry and residence of third-country nationals in Germany. Section 21 specifically governs residence permits for self-employed persons and freelancers.
Section 21 (1) AufenthG - Self-Employed Business Activity
This provision applies to entrepreneurs establishing commercial businesses (Gewerbe) in Germany, such as limited liability companies (GmbH) or acquiring existing businesses. The law requires demonstration of economic interest or regional demand, positive economic impact, and adequate financing.
Section 21 (5) AufenthG - Freelance Activity
This provision applies to persons engaged in liberal professions (Freiberufler), including doctors, lawyers, architects, engineers, IT professionals, artists, journalists, and consultants. Different documentation requirements apply.
Requirements Under Section 21 (1) AufenthG
According to Section 21 (1) of the Residence Act, a residence permit for self-employment may be granted if:
- Economic Interest or Regional Demand: An economic interest exists in the business activity, or a regional demand for the product or service can be demonstrated
- Positive Economic Effect: The business activity is expected to have a positive effect on the economy
- Financing: Implementation of the business concept is secured through equity capital or a loan commitment
Competent Authorities
Ausländerbehörde (Foreigners' Office / Immigration Office)
The local Foreigners' Office (Ausländerbehörde) is the government authority responsible for issuing residence permits. Applications for residence permits under Section 21 AufenthG are submitted to and processed by the Ausländerbehörde with jurisdiction over the applicant's intended place of residence in Germany.
IHK - Chamber of Industry and Commerce (Industrie- und Handelskammer)
The German Residence Act stipulates that authorities competent for the place of incorporation must be involved in assessing business viability. For commercial activities, the local Chamber of Industry and Commerce (IHK) provides an expert assessment (Stellungnahme) to the immigration authority regarding economic interest, regional demand, and expected economic impact. This assessment is not binding but provides the immigration authority with orientation for the final decision.
German Embassy or Consulate
Applicants residing outside Germany must apply for an initial national visa (D-visa) at the German embassy or consulate with jurisdiction over their country of residence. After entry to Germany, the visa is converted into a residence permit at the local Ausländerbehörde.
Historical Context
Prior to recent regulatory changes, entrepreneurs establishing a GmbH were typically expected to invest a minimum share capital of €250,000 to demonstrate economic viability and secure IHK approval. This guideline has been abolished, and there is now no statutory minimum capital requirement. However, the investment amount must still be sufficient to demonstrate economic viability, positive economic impact, and ability to support the entrepreneur and family members. In practice, investments of €250,000 or more continue to be common for standard GmbH formations.
Investment Routes and Capital Requirements
Special Routes for University Graduates and Researchers
Foreign nationals who have completed a degree at a state or state-recognized university in Germany, or who hold a residence permit as a researcher or scientist, are granted a residence permit for self-employment under modified standards pursuant to Section 21 (2a) AufenthG. The intended self-employment must have a connection with the knowledge acquired during studies or research activity.
Government Fees and Costs
| Fee Type | Amount | Notes |
|---|---|---|
| National Visa (D-Visa) | €75-€90 | Initial visa application at German embassy/consulate |
| Residence Permit Issuance | €100 | Standard fee for adults (Turkish nationals: €37 for 24+, €22.80 under 24) |
| Residence Permit Extension | €93-€100 | Renewal after initial 3-year period |
| Settlement Permit (Permanent) | €124-€147 | After 3 years for successful entrepreneurs |
| GmbH Formation | €1,200-€2,500 | Notary fees and commercial register entry |
| Trade Office Registration | €20-€60 | Gewerbeanmeldung (trade office notification) |
Legal representation, business plan preparation, certified translations, apostille services, and tax advisory fees are not included above.
Pension Provision Requirement (Age 45+)
If the applicant has completed 45 years of age at the time of application, a residence permit can only be issued if adequate old-age pension provision is demonstrated. As of July 1, 2024, adequate pension provision requires either:
- A monthly pension of €1,565.03 (for at least 12 years), or
- An asset amount of €225,364.00
Proof of pension provision is not required for nationals of: Dominican Republic, Indonesia, Japan, Philippines, Sri Lanka, Turkey, and United States of America.
Eligibility Requirements
Main Applicant Criteria
| Requirement | Standard |
|---|---|
| Nationality | Non-EU, non-EEA, non-Swiss citizen (third-country national) |
| Age | Minimum 18 years old |
| Business Concept | Viable business plan demonstrating economic interest or regional demand |
| Capital | Sufficient financing through equity or loan commitment (€250,000+ typical) |
| German Language | A1 level minimum for initial permit; B1 required for permanent residence |
| Health Insurance | Valid statutory or private health insurance covering all risks in Germany |
| Criminal Record | Clean criminal record; police clearance certificates required |
| Pension Provision (if age 45+) | €1,565.03 monthly pension or €225,364 assets (exempt for certain nationalities) |
Business Plan Requirements
The business plan is a critical document for assessing economic viability and must be carefully prepared. The IHK Berlin guidance states that business plans should:
- Company Profile: Detailed description of the business, products or services, target market, and competitive positioning
- Economic Interest or Regional Demand: Clear demonstration of how the business fills an economic need or regional gap
- Positive Economic Impact: Evidence of expected contribution to the German economy (e.g., job creation, innovation, export potential)
- Revenue Forecast: Realistic revenue projections for at least 3 years
- Liquidity Plan: Detailed cash flow projections demonstrating financial sustainability
- Financing Plan: Clear documentation of capital sources (equity, loans, investor commitments)
- Qualifications: Evidence of relevant business experience and industry expertise
- Supporting Documents: Market research, letters of intent from potential clients or partners, commercial agreements
Business plans may be submitted in English or German, though a German summary is advisable in any case. The plan should be concrete, comprehensible, and supported with as much documentary evidence as possible.
Family Reunification
Spouse and dependent children under 18 years of age may join the main applicant through family reunification provisions under the Residence Act. Family reunification is possible if the self-employed person can demonstrate that the income from self-employment or freelance work will be sufficient to support the family without recourse to public funds.
Spouse Rights: The spouse of a self-employed residence permit holder is granted permission to work in Germany without restrictions upon receiving their family reunification residence permit.
Visa-Exempt Nationals
Nationals of Australia, Canada, Israel, Japan, New Zealand, South Korea, United Kingdom, and United States may enter Germany without a visa and apply for the residence permit at the local Ausländerbehörde after arrival. However, self-employment may not commence until the residence permit is issued.
Programme Benefits
Residence Permit Advantages
Legal residence in Europe's strongest economy with GDP of €3.9 trillion and access to 450 million EU consumers.
Settlement permit available after only 3 years for successful entrepreneurs (compared to 5 years for most other permit types).
Travel throughout the 26-country Schengen Area for stays up to 90 days within 180 days.
German citizenship available after 5 years legal residence (reduced from 8 years as of June 27, 2024).
Spouse and children under 18 eligible for residence. Spouse receives open work authorization.
Access to advanced transportation, digital infrastructure, and logistics networks.
Ability to employ from highly educated, skilled German and EU labor pool.
Stable regulatory framework, strong legal protections, and access to European markets.
Access to excellent public education system and high-quality healthcare services.
As of June 27, 2024, dual citizenship permitted for naturalized Germans.
Settlement Permit (Permanent Residence) After 3 Years
Self-employed entrepreneurs under Section 21 (1) AufenthG may apply for settlement permit (Niederlassungserlaubnis) after only 3 years pursuant to Section 21 (4) of the Residence Act, provided:
- Business Success: The business has been successfully established and is operational
- Income Sufficiency: Income from the business is sufficient to support the applicant and family members on a permanent basis
- Sustainability: The business activities give reason to expect continued sustainable development
- German Language: B1 level German language proficiency
- Integration: Basic knowledge of legal and social system (typically proven through integration course completion)
The 3-year pathway to permanent residence for entrepreneurs is significantly faster than the standard 5-year requirement for most other residence permit types, recognizing the economic contribution of successful businesses.
Path to German Citizenship
Following the June 27, 2024 reform of German nationality law, foreign nationals may apply for German citizenship after 5 years of legal residence (reduced from 8 years). Key requirements include:
- Legal Residence: 5 years lawful residence in Germany
- Permanent Right of Residence: Settlement permit or long-term residence permit
- Financial Independence: Ability to support oneself and family without public assistance
- German Language: B1 level proficiency
- Civic Knowledge: Pass naturalization test demonstrating knowledge of German legal system, society, and way of life
- Clean Criminal Record: No serious criminal convictions
- Constitutional Commitment: Declaration of commitment to Germany's free democratic basic order
Dual Citizenship: As of June 27, 2024, Germany permits dual citizenship for naturalized citizens. Applicants no longer need to renounce their previous citizenship when obtaining German citizenship.
Schengen Area Access
Germany residence permit holders may travel throughout the Schengen Area for stays up to 90 days within any 180-day period without requiring additional visas. The Schengen Area comprises 26 European countries: Austria, Belgium, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden, and Switzerland.
Education and Healthcare
Education: Germany offers excellent public education at no cost, including world-renowned universities with minimal tuition fees. Children of residence permit holders have access to German public schools and universities on equal terms with German nationals.
Healthcare: Germany maintains one of the world's highest-quality healthcare systems. Residence permit holders with valid German health insurance have access to comprehensive medical services.
Application Process
The complete process from initial consultation to residence permit issuance typically takes 4 to 8 months. Actual timelines vary based on business complexity, completeness of documentation, appointment availability at German missions and immigration offices, and current processing capacity.
Process Steps
Eligibility Screening and Business Model Development
Comprehensive assessment of entrepreneur background, capital availability, business concept viability, and family composition with professional advisors.
Business Plan Preparation
Development of detailed, IHK-compliant business plan demonstrating economic interest or regional demand, positive economic impact, financing, revenue projections, and job creation potential. Business plan should be prepared by qualified business consultants with knowledge of German immigration requirements.
Document Collection and Authentication
Gather identity documents, educational certificates, criminal record certificates, financial documentation, health insurance, and business plan. All foreign documents must be apostilled or legalized and translated into German by certified translators.
Optional: IHK Pre-Assessment
Some entrepreneurs seek preliminary consultation with the local Chamber of Industry and Commerce (IHK) to assess business concept viability before formal application. This is not required but can improve approval prospects.
Visa Application at German Embassy/Consulate
Submit national visa (D-visa) application for self-employment at German embassy or consulate with jurisdiction over country of residence. Application includes completed forms, business plan, financial documentation, and all supporting documents. Visa fee: €75-€90.
Embassy Processing and IHK Consultation
German embassy forwards application to Ausländerbehörde in Germany, which requests expert assessment (Stellungnahme) from local IHK. IHK evaluates economic interest, regional demand, and expected impact. Processing time: typically 4 to 8 weeks, though longer periods are possible.
Visa Approval and Entry to Germany
Upon approval, D-visa is issued, typically valid for 3 months for entry to Germany. Travel to Germany within visa validity period.
Address Registration and Residence Permit Application
Within 2 weeks of arrival, register address at local residents' registration office (Einwohnermeldeamt). Schedule appointment at local Ausländerbehörde to convert D-visa into residence permit. Bring registration confirmation, health insurance, passport, and additional documents as requested.
Company Formation and Business Registration
For GmbH: Notarize articles of association, deposit share capital into German bank account, register company in commercial register (Handelsregister). For freelancers: Register at tax office (Finanzamt), obtain tax number, and if required, register with professional chamber.
Residence Permit Issuance
Ausländerbehörde issues electronic residence permit card (eAT), typically valid for up to 3 years. Processing takes approximately 4 weeks after appointment. Fee: €100 (€37 for Turkish nationals 24+, €22.80 under 24).
Business Operations and Compliance
Commence business operations, maintain proper accounting records, file tax returns, and ensure compliance with German business regulations.
Visa-Exempt Nationals (Simplified Process)
Nationals of Australia, Canada, Israel, Japan, New Zealand, South Korea, United Kingdom, and United States may enter Germany without a visa and apply directly to the local Ausländerbehörde for the residence permit. However, self-employment may not commence until the residence permit is issued. The application process and requirements are otherwise the same.
Required Documents
Identity and Civil Status Documents
- Valid passport with minimum 12 months validity beyond intended period of stay
- Birth certificate for main applicant and all family members
- Marriage certificate (if applicable)
- Divorce decree or death certificate of previous spouse (if applicable)
- Passport-size photographs (biometric, meeting German requirements)
Criminal Record Certificates
- Police clearance certificate from country of citizenship
- Police clearance certificate from country of current residence (if different)
- Certificates must be recent (typically within 6 months)
- All certificates must be apostilled or legalized
- Official German translation by certified translator required
Health Insurance Documentation
- Proof of German statutory health insurance (gesetzliche Krankenversicherung), or
- Private health insurance certificate meeting German requirements (certificate must explicitly state coverage scope compliant with Section 257 (2a) SGB V)
- Foreign health insurance generally not accepted
- Coverage must be valid for entire residence permit period
Business Plan and Financial Documentation
Comprehensive Business Plan Including:
- Executive summary
- Company profile and ownership structure
- Products or services description
- Market analysis and competitive positioning
- Demonstration of economic interest or regional demand
- Evidence of positive economic impact (job creation, innovation, export potential)
- Revenue forecast (minimum 3 years)
- Liquidity plan and cash flow projections
- Financing plan detailing capital sources
- Entrepreneur's qualifications and relevant experience
Financial and Source of Funds Documentation:
- Bank statements (typically 6 months) demonstrating source of investment capital
- Proof of available equity capital
- Loan commitment letters from banks (if financing includes debt)
- Source of wealth documentation (employment records, business ownership, asset sale records, inheritance documentation)
- Bank reference letters
- Tax returns or tax clearance certificates (where applicable)
- Evidence of net worth and financial capacity to support family
Educational and Professional Qualifications
- University degree certificates or diplomas (if applicable to business activity)
- Professional certifications or licenses
- CV documenting relevant business and industry experience
- For university graduates/researchers seeking modified standards: German university degree or researcher residence permit documentation
Business Formation Documents (After Arrival in Germany)
For GmbH (Limited Liability Company):
- Articles of association (Gesellschaftsvertrag) notarized by German notary
- List of shareholders documenting ownership distribution
- Proof of share capital deposit in German bank account
- Commercial register extract (Handelsregisterauszug) or at minimum, notarial application for registration
- Trade office registration (Gewerbeanmeldung)
For Freelancers:
- Tax office registration and tax number (Steuernummer)
- Professional practice permit (Berufsausübungserlaubnis) if profession is regulated
- Proof of professional qualifications
- Letters of intent or contracts with prospective clients
Pension Provision (If Age 45+)
- Private pension insurance certificate showing monthly pension of €1,565.03+ for at least 12 years, or
- Documentation of assets totaling €225,364 or more
- Not required for nationals of: Dominican Republic, Indonesia, Japan, Philippines, Sri Lanka, Turkey, USA
German Language Proficiency
- A1 level certificate for initial residence permit (e.g., Goethe-Zertifikat A1, telc Deutsch A1)
- B1 level required for settlement permit after 3 years
Document Authentication: All documents issued outside Germany must be apostilled or legalized by the competent authority of the issuing country according to the Hague Apostille Convention. Documents in languages other than German must be translated by certified translators, and the translations must also be apostilled or certified.
Post-Approval Obligations and Pathway to Permanent Residence
Residence Permit Renewal
The initial residence permit for self-employment is issued for a maximum of 3 years. Extension is possible if:
- Business Success: The business continues to operate successfully
- Income Sufficiency: The entrepreneur can demonstrate ability to cover living costs for self and family members
- Continued Economic Viability: Business activities continue to fulfill original criteria (economic interest, positive impact)
- Health Insurance: Valid health insurance is maintained
Begin renewal process at least 12 weeks before current residence permit expires. During processing, the existing permit remains valid (Fiktionsbescheinigung).
Business Reporting Requirements
For residence permit extension, entrepreneurs must provide:
- Audit Report (Prüfungsbericht): Prepared by tax consultant, auditor, or lawyer with relevant professional experience, documenting business performance, revenue, expenses, and financial viability
- Tax Returns: Filed annual tax returns demonstrating business income
- Commercial Register Extract: Updated Handelsregisterauszug confirming company status
- Proof of Ongoing Operations: Business bank statements, contracts, invoices, evidence of continued economic activity
Settlement Permit (Permanent Residence) After 3 Years
Self-employed entrepreneurs may apply for settlement permit (Niederlassungserlaubnis) after 3 years pursuant to Section 21 (4) AufenthG if:
- Successful Business Establishment: The business has been successfully established and operated for 3 years
- Sustainable Income: Income generated from the business is sufficient to maintain the entrepreneur and family members on a permanent basis
- Future Viability: Business activities give reason to expect continued sustainable development
- No Pension Requirements for Settlement Permit: As a general rule, self-employed persons do not need to provide additional proof for settlement permit beyond demonstrating business income sufficiency
- German Language B1: Proficiency at B1 level of Common European Framework of Reference for Languages
- Integration: Basic knowledge of legal and social system (proven through integration course completion or "Living in Germany" test)
- Health Insurance: Adequate health insurance coverage
- Sufficient Living Space: Adequate housing for self and family
The 3-year pathway is significantly faster than the 5-year requirement for most residence permit types. Note that freelancers (Freiberufler) under Section 21 (5) AufenthG are eligible for settlement permit after 5 years, not 3 years.
Settlement Permit Fee: €124 (€62 upon receipt of application, €62 upon grant). For Turkish nationals: €22.80 total.
Taxation and Financial Obligations
Tax Residency: Persons who maintain their primary residence in Germany or who are ordinarily resident in Germany for more than 183 days in a calendar year are considered German tax residents and are subject to taxation on worldwide income. Germany has double taxation treaties with over 90 countries to prevent double taxation.
Business Tax Obligations:
- Income Tax (Einkommensteuer): Progressive tax on business profits, ranging from 14% to 45% depending on income
- Trade Tax (Gewerbesteuer): Municipal tax on business income, rates vary by municipality (typically 7-17%)
- VAT (Umsatzsteuer): 19% standard rate (7% reduced rate for certain goods and services)
- Corporate Tax: For GmbH, corporate income tax of 15% plus solidarity surcharge
Professional Tax Advice Required: German tax law is complex. Entrepreneurs should engage qualified German tax advisors (Steuerberater) to ensure compliance and optimize tax planning.
Path to German Citizenship
Following the June 27, 2024 reform of the Nationality Act (Staatsangehörigkeitsgesetz), foreign nationals may apply for German citizenship after 5 years of lawful residence (reduced from 8 years). Key requirements include:
- 5 Years Legal Residence: Continuous lawful residence in Germany (half of study/training periods count toward requirement)
- Settlement Permit or Long-Term Residence: Must hold permanent residence or a residence permit leading to permanent residence
- Financial Independence: Ability to support oneself and dependent family members without recourse to public funds
- German Language B1: Sufficient knowledge of German language
- Civic Knowledge: Passing the naturalization test demonstrating knowledge of legal system, society, and way of life in Germany
- Clean Criminal Record: No serious criminal convictions
- Constitutional Commitment: Declaration of commitment to free democratic basic order of the Federal Republic of Germany
- No Exclusion Grounds: No anti-constitutional activities, violations of equal rights principles, or polygamous marriages
Dual Citizenship: As of June 27, 2024, Germany permits dual citizenship. Naturalized German citizens may retain their previous citizenship, and German citizens may acquire additional citizenships without losing German citizenship. It is no longer necessary to apply for retention permission (Beibehaltungsgenehmigung).
In October 2025, Germany eliminated the "fast-track naturalization" option that permitted citizenship after 3 years with exceptional integration achievements. The standard 5-year requirement now applies uniformly to all applicants.
Programme Change Risk
German immigration law is subject to legislative amendment by the German Bundestag. Investment expectations, business requirements, fees, processing procedures, and programme terms may change through regulatory reform. Recent history demonstrates this: the previous €250,000 minimum capital guideline was abolished, and citizenship residence requirements were reduced from 8 to 5 years in June 2024.
Existing residence permit holders are generally protected under transitional provisions, but renewals and new applications must comply with current requirements at the time of application.
NTL: Professional Advisory Services for Germany Residency by Investment
NTL provides comprehensive professional advisory services for Germany's residency by investment programme through Section 21 AufenthG, coordinating qualified German legal professionals, business plan consultants, and tax advisors throughout the application process.
Our Advisory Services
Eligibility Screening and Programme Assessment
Comprehensive review of entrepreneur background, capital availability, business concept viability, family composition, and suitability for Germany residency programme.
Business Model Development and Viability Analysis
Strategic consultation on business structure (GmbH vs. freelance), sector selection, economic interest demonstration, and regional demand assessment.
Business Plan Preparation Coordination
Connection with qualified German business consultants experienced in preparing IHK-compliant business plans for immigration purposes, including financial projections, market analysis, and economic impact documentation.
Source of Funds Documentation Preparation
Guidance on assembling comprehensive source of wealth and source of funds documentation to satisfy German immigration and financial compliance requirements.
Document Collection, Authentication, and Translation
Complete document gathering, apostille coordination, and arrangement of certified German translations through authorized translators.
German Immigration Lawyer Coordination
Connection with specialized German immigration lawyers (Rechtsanwälte) experienced in Section 21 AufenthG applications and IHK coordination.
Visa Application Preparation and Submission
Complete visa application package preparation and submission support at German embassy or consulate.
IHK Consultation Support
Coordination with immigration lawyer for IHK expert assessment process and response to any IHK inquiries or requests for additional information.
Relocation and Setup Assistance
Support for entry to Germany, address registration, Ausländerbehörde appointment scheduling, health insurance arrangement, and initial settlement logistics.
Company Formation Coordination
Coordination of GmbH formation with German notary, commercial register entry, trade office registration, and business bank account opening.
Tax Advisory Connection
Introduction to qualified German tax advisors (Steuerberater) for ongoing tax planning, compliance, and financial reporting.
Renewal and Settlement Permit Support
Ongoing support for residence permit extensions after 3 years and settlement permit (permanent residence) applications.
Compliance and Due Diligence Standards
Comprehensive client due diligence and source of funds review prior to engagement.
All services provided in accordance with German immigration law and Ausländerbehörde procedures.
Coordination exclusively with licensed Rechtsanwälte, notaries, Steuerberater, and authorized business consultants.
Adherence to international standards for residency and business immigration advisory services.
Frequently Asked Questions
There is no statutory minimum investment amount under Section 21 AufenthG. The law requires sufficient capital to establish and operate a viable business. In practice, investments of €250,000 or more are generally expected to demonstrate economic viability and secure favorable IHK assessment, though lower amounts may be acceptable for certain business models demonstrating strong economic impact or regional demand.
The complete process from initial consultation to residence permit issuance typically takes 4 to 8 months. This includes business plan preparation (1-2 months), visa application processing at German embassy (1-3 months), IHK assessment (4-8 weeks), and residence permit conversion in Germany (4 weeks after appointment). Actual timelines vary based on application completeness and current processing capacity.
Yes. Spouse and dependent children under 18 years of age may join through family reunification provisions, provided the main applicant demonstrates sufficient income from self-employment to support the family without recourse to public funds. The spouse receives open work authorization upon receiving their family reunification residence permit.
Self-employed entrepreneurs under Section 21 (1) AufenthG may apply for settlement permit (permanent residence) after only 3 years if the business is successful and generates sufficient income. This is significantly faster than the 5-year requirement for most other residence permit types. German language proficiency at B1 level and basic civic knowledge are required.
The IHK provides an expert assessment (Stellungnahme) to the immigration authority regarding the business concept's economic viability, economic interest or regional demand, and expected impact on the economy. While not binding, the IHK assessment strongly influences the immigration authority's decision. A positive IHK assessment significantly improves approval prospects.
You may establish any lawful commercial business (Gewerbe) such as a GmbH, or work as a freelancer (Freiberufler) in liberal professions. The business must demonstrate economic interest or regional demand and positive economic impact. Small one-person businesses with minimal economic impact (such as small fast-food outlets) typically do not qualify under Section 21 (1), though they may qualify under other provisions.
A1 level German language proficiency is required for the initial residence permit application. B1 level is required for settlement permit (permanent residence) after 3 years. Language certificates from recognized institutions such as Goethe-Institut or telc are accepted.
Yes. Following the June 27, 2024 nationality law reform, you may apply for German citizenship after 5 years of lawful residence (reduced from 8 years). Requirements include settlement permit or long-term residence, financial independence, B1 German language proficiency, civic knowledge (naturalization test), and clean criminal record. Dual citizenship is permitted as of June 27, 2024.
Tax residency in Germany requires more than 183 days residence per year or maintaining primary residence in Germany. German tax residents are taxed on worldwide income. Business tax obligations include income tax (14-45% progressive), trade tax (7-17% municipal), VAT (19% standard), and for GmbH, corporate tax (15% plus solidarity surcharge). Germany has double taxation treaties with over 90 countries. Professional German tax advice is essential.
Residence permit extension and settlement permit eligibility depend on demonstrated business success and sufficient income to support yourself and family. If the business fails, you may not qualify for extension unless you establish a new viable business or transition to another residence permit category (such as employment). Early consultation with immigration lawyers is advisable if business difficulties arise.
Official Resources and Further Information
Request Your Germany Residency Assessment
Contact NTL for a confidential consultation on Germany's residency by investment programme. Our advisors will assess your business concept, explain the Section 21 AufenthG process, and coordinate qualified German legal and business advisory professionals.
Sources and Official References
-
German Residence Act (Aufenthaltsgesetz, AufenthG)
Act on the Residence, Economic Activity and Integration of Foreigners in the Federal Territory
Type: Federal Law
https://www.gesetze-im-internet.de/englisch_aufenthg/englisch_aufenthg.html -
Federal Office for Migration and Refugees (BAMF)
Official German Government Immigration Authority
Type: Government Agency
https://www.bamf.de/EN/Themen/MigrationAufenthalt/ZuwandererDrittstaaten/Migrathek/Niederlassen/niederlassen-node.html -
Make it in Germany - Federal Government Portal
Official portal of the German government for skilled workers
Type: Official Government Portal
https://www.make-it-in-germany.com/en/visa-residence/types/other/self-employment -
IHK Berlin - Chamber of Industry and Commerce
Official guidance on Section 21 AufenthG business applications
Type: Official Chamber Authority
https://www.ihk.de/berlin/service-und-beratung/existenzgruendung/-21-aufenthg-antragstellung-englisch-4364122 -
Berlin Immigration Office (Landesamt für Einwanderung)
Official procedures and fee schedules for residence permits
Type: Regional Immigration Office
https://service.berlin.de/dienstleistung/305249/en/ -
German Nationality Act (Staatsangehörigkeitsgesetz, StAG)
Federal law governing German citizenship and naturalization
Type: Federal Law
Date: As amended by Act of June 27, 2024
https://www.gesetze-im-internet.de/englisch_stag/englisch_stag.html -
Federal Foreign Office - Nationality Law Information
Official information on German citizenship law reforms
Type: Federal Ministry
Date: Updated June 27, 2024
https://www.auswaertiges-amt.de/en/229970-229970 -
Federal Government - Naturalization Information Portal
Official citizenship requirements and application procedures
Type: Official Government Portal
Date: Current as of 2024
https://www.einbürgerung.de/fragebogen.php?l=en
Germany's residency by investment programme operates under Section 21 of the German Residence Act (Aufenthaltsgesetz), which is subject to legislative amendment by the German Bundestag. Programme requirements, capital expectations, business criteria, fees, procedures, and eligibility standards may change through regulatory reform.
Applications are adjudicated by local Ausländerbehörden (immigration offices) with expert assessment provided by local Chambers of Industry and Commerce (IHK). Each application is evaluated on its individual merits based on business viability, economic impact, and completeness of documentation.
NTL provides professional advisory services through coordination with our licensed German legal professionals and business consultants but does not guarantee approval, processing timelines, business success, or programme outcomes.