How to obtain a residence permit in Germany: tips and recommendations

Introduction

In a conversation with legal and economic expert Herman Moises, who holds a Master of Laws from the Free University of Berlin and is the managing partner of Avers Group Germany GmbH, we discussed key points regarding migration to Germany.

Fundamentals of Immigration Law Regulation

The legal basis for the immigration process in this country is outlined in a federal law that addresses the issues of foreign citizens' stay, known asResidence ActThis law establishes clear criteria under which foreigners can apply for residence permits.

Reasons for obtaining a residence permit

There are several common grounds for obtaining permanent residency in Germany. These include:

• education in educational institutions;
• registration of marriage with a citizen of Germany;
• reunion with the parents of minors;
• employment
• the presence of German or Jewish descent;
• starting your own business.

Many migrants prefer to start a business as a way to legalize their stay in the country.

Other situations for obtaining a residence permit

However, it is important to note the significance of point #7, which mentions the possibility of obtaining a residence permit in“other situations”This message highlights the clarifications from the German Ministry of the Interior on this issue, which provide additional details about the law.

Economic independence and residence permit

According to some documents, foreigners who can demonstrate their economic independence and wish to settle in Germany have the opportunity to obtain a residence permit. This is relevant even for owners of vacation homes who plan to regularly use their properties in the country. It is important to understand that such housing does not necessarily have to be owned — it can be rented for a long period of time.

Opportunities for elderly people

It has also been noted that the right to reside may be granted to elderly individuals who wish to participate in the lives of their grandchildren but do not have the right to family reunification.

Methods of obtaining residence permits for wealthy foreigners

In today's conditions, it is worth considering two key methods that can help financially secure foreigners obtain residency in Germany:

• Economic independence— this is provided for in paragraph 7 of the Residence Act. Here, the key condition is the ability to confirm the availability of sufficient funds for living. In this case, there is no need for investments, such as contributions to the economy, starting a business, or purchasing real estate.
• Opening a business— this option is mentioned in paragraph 21 of the Residence Act. To implement it, you need to present a justification for your business plan, convincing the authorities that your initiative will benefit the German economy. Some consultants try to persuade their clients that hiring employees is a must for obtaining a residence permit. However, this requirement does not have official status and remains merely a recommendation, which may reduce the likelihood of a rejection of the business plan approval.

Conclusion

Thus, knowledge of the opportunities that can lead to obtaining a residence permit in Germany opens doors for those who dream of starting a new life on German soil, as well as providing new prospects for both business and personal growth.

Comparison of the advantages of obtaining a residence permit in Germany

Let's compare the advantages of obtaining a residence permit in Germany for wealthy foreigners and businesspeople. We'll discuss important aspects to consider in this process.

Economic independence

The primary requirement for candidates isfinancial independenceThis is especially relevant for those who intend to start their own business in Germany. Applicants must be citizens who are at least 18 years old, regardless of their country of birth. The education and professional experience of the candidate must correspond to their future activities as an investor.

Business plan and language skills

In addition, it is necessary to develop and providebusiness planwhich must be approved by local authorities. Although knowledge of the German language is not a mandatory requirement, having it can significantly increase the chances of success in obtaining a visa. In most cases, having capital to start a business is required, but specific amounts are not specified in the law, as each case is considered individually.

• Typically, initial investments start fromone million eurosfor the family.
• It is necessary to have a stable income of approximatelyfour to five thousand eurosper month.

Place of residence and health insurance

An equally important condition isavailability of housingThis can be either owned housing or long-term rental of living space. A valid one is also required.health insurance, provided by a private insurer. It should be noted that when obtaining a residence permit, the investor's spouse and children will also be able to apply for it.

Advantages for investors

An interesting point is thatresidence permitIt provides the opportunity to reside in Germany for an unlimited period, as long as the existing conditions for the permit are met. The requirements for the minimum stay are quite flexible, making this option convenient for most entrepreneurs. Moreover, having a visa allows for visa-free travel within the Schengen Area.

Education for investor children

As for the upbringing of foreign investors' children, they gain the right tofree educationIn public educational institutions, on equal terms with the children of German citizens. If they complete their schooling in Germany, they also have the opportunity to continue their education at universities in the country. It is important to note that passive business can be conducted without any restrictions, while other forms of entrepreneurship or employment will require additional approval from local authorities.

Permanent residence and citizenship

It is also worth considering that under certain conditions, you can apply for obtaining.permanent place of residenceIn five years, if the language proficiency exam is successfully passed. Or in three years, if the business plan turns out to be successful.Obtaining German citizenshipAfter eight years of living in the country, it is possible. After seven years of legal and continuous residence with a visa, you can start the process of obtaining citizenship.

Fraud and fictitious schemes

Finally, we strongly advise against participating in dubious schemes offered by unscrupulous consulting companies. They may promise assistance in finding fake employers to obtain residence permits, which can lead to risks of abuse. It is also not advisable to resort to sham marriages as a means of obtaining residency, as such applications are scrutinized particularly closely.

Problems and opportunities for foreign entrepreneurs in Germany

Surprisingly, even today, wealthy foreigners continue to participate in this controversial program. In practice, many of them regularly visit their "consorts" to confirm the existence of marital ties before government authorities.

Tips for obtaining a residence permit through business

Since the process of obtaining a residence permit (RP) is based on business, we have prepared a number of recommendations that can make your task easier.

1. Avoid deception

The first and most important thing is—avoid deceptionOfficials. Unfortunately, some citizens are trying to create a false image of doing business in Germany, even though they have no such intentions. Their true desire is simply to live, enjoy life, and move freely across the countries of the European Union.

However, to achieve these goals, it is necessary to meet certain criteria in order to apply for a residence permit. In this situation, it would be wise to consider other options for obtaining status, such as the "financially independent person" status, which does not require the establishment of an unnecessary company.

2. A business plan is everything to you.

It is important to consider that a residence permit based on starting a business is intended for those who genuinely intend to develop their own business in Germany. Your entrepreneurial activity will be subject to scrutiny not only at the application stage but also during the renewal of your status.

Therefore, it is important to have a well-thought-out plan.business planwhich will become an important tool for protecting your interests.

3. The Importance of Innovations

Especially welcomedinnovative enterprisesAlthough this is not the only criterion. We have worked with entrepreneurs in various fields, such as construction, trade, and the restaurant business. You will need to convince officials and representatives of the Chamber of Commerce and Industry that your business has positive prospects and that you possess the necessary knowledge and experience to run it successfully.

At this stage, it is highly advisable to engage an experienced consultant who can help you present the business plan properly to the German authorities.

4. Investments and financial requirements

The size neededinvestmentsIt depends on your business plan. One of the advantages of immigration through entrepreneurial activities is that you won't need to prove you have significant personal funds. However, if you plan to move with your entire family, the authorities will still be interested in your financial situation.

It is recommended that your family's total capital, including children, should be at least100,000 eurosIt is important to note that the legislation does not set strict limits on the minimum capital required to establish a company.

In our company, we believe that having employees is not a mandatory requirement, but rather a recommendation that helps simplify the process of presenting a business plan to officials. If you lack the resources to create the necessary number of jobs, it is important to focus on justifying your business plan. This can be a more effective approach.

In small towns, the visa application process usually goes faster. For example, in the capital of Germany, Berlin, there are difficulties in protecting a business plan for companies not related to the information technology sector. Local authorities dealing with foreign affairs are often overwhelmed with responsibilities, and getting a consultation from the right expert can be quite challenging, which can extend the waiting time for a decision to 12 months or more.

Comparison with Small Towns

While in cities of categories B, C, and D administrative procedures happen much faster, local officials show a more lenient attitude towards entrepreneurs from various fields. This situation can be explained by the overall trend towards urbanization: the population in small towns is decreasing and aging, while in large cities like Berlin, Frankfurt, or Munich, competition in the business market is becoming extremely fierce.

Experts' Opinion

It is important to consider the significant comment from German Moises, managing partner of Avers Group Germany GmbH: obtaining a visa may turn out to be unsuccessful. The reasons for a potential denial are varied, and the consequences depend on the nature of these reasons. If the denial is based on formal shortcomings, such as vague justifications or the influence of a specific official reviewing the application, the negative consequences may be minimal.

• In such situations, it's usually possible to prepare for a resubmission and gather a new set of documents.
• It is important that your desire to obtain a residence permit is justified and credible.

It is not uncommon for the same documents to be rejected in Berlin while receiving approval in other regions. According to our experience, over 90% of applications are successfully completed. However, we do warn in advance about potential difficulties that may arise for the remaining 10%. If the rejections are justified, for example, in cases of intentional deception, fraud, document forgery, or concealment of important information, this can lead to a ban on entry into Germany.

Financial Independence

When it comes to obtaining a residence permit based on financial independence, there are several important points to consider. It is essential to accurately assess your financial resources. The Ministry of Internal Affairs outlines general criteria regarding economic independence. Essentially, this applies to individuals who are capable of not working and providing for their living needs, including housing and medical care, until they reach retirement age.

Estimated Parameters

We recommend considering the following guidelines:

• A capital of 1 million euros will be required for the family.
• Passive income of 4-5 thousand euros for each family member every month.

Nevertheless, each case should be evaluated individually. It is important to realize that if the family property consists of only one expensive villa that does not generate income or is not rented out, this will not be sufficient grounds for determining financial independence.

Strategy for obtaining a residence permit in Germany

When developing a strategy for obtaining a residence permit in Germany, it is crucial to pay special attention to the organization of your financial assets. It is important to understand that having a bank account, dividends, and income-generating property has completely different implications compared to the process of purchasing real estate. Real estate agents often persuade clients, believing that buying expensive properties, such as villas, automatically leads to obtaining a visa. However, this is a serious misconception.

According to the current legal norms in Germany, the value of real estate cannot serve as a basis for obtaining a residence permit. It can only indirectly indicate your intentions to move to the country.

Key conditions for obtaining a residence permit

A key condition that holds real significance is the availability of sufficient capital, which will need to be verified. However, investments in real estate are not mandatory. If you want to obtain a residence permit in Germany through the "economic independence" mechanism, it is important to have a registered address in the country, which can be registered in your name under a rental agreement. If your ultimate goal is to achieve legal resident status in Germany, it is advisable to first go through the process of obtaining a residence permit and only then consider the option of purchasing real estate.

Requirements for sources of income

As for the requirements for sources of income, they must be transparent and financially justified. The family's assets are assessed based on a number of criteria, including:

• the value of the existing real estate,
• shares in companies,
• bank accounts (it is not necessary for these to be only accounts in banks in Germany).

There are no strict guidelines in the legislation regarding how regular income should be generated. Possible sources of income may include:

• profit from property rental,
• payments for work in management structures,
• dividends from stocks and other possible sources.

Potential income that the applicant could earn from renting out their property is also taken into account. As for ownership rights, they can vary; the main thing is to have assets that are backed by legal grounds.

Bureaucratic procedures and assistance from specialists

There is no need to fear bureaucratic procedures and legal formalities. If you decide to consult specialists who will assist you in organizing your residence permit in Germany, the main thing you will need to do is provide the necessary information and copies of documents. You will need:

• identity document (passport),
• birth and marriage certificates,
• documents related to property (certificates of ownership of real estate, shares in a business, securities, inventories of bank safe deposit boxes),
• data confirming your income (payroll statements, rental income, bank deposits).

The process of obtaining a residence permit

The immigration consultant will independently organize all your documents, translate them into German, and prepare the entire application package. They will assist you during the interview and accompany you throughout the entire process. The time required to obtain a residence permit depends on many factors, including the specifics of your case, the grounds for obtaining it, and the qualifications of the consultant assisting you.

The process can take anywhere from a few weeks to over a year, and for the category of "economic independence," it may take up to six months to obtain all the necessary permits.

Conclusion

In conclusion of my conversation with Herman Moises, a lawyer and economist, I would like to emphasize the importance of correctly understanding German legislation on the residence of foreigners. When considering the law "on the residence of foreigners," it is worth paying attention to its nuances, which can open new horizons for potential immigrants. For example, paragraph 7 provides the opportunity to obtain a residence permit in Germany not only for entrepreneurs and workers but also for economically independent individuals, which creates possibilities for expanding and diversifying immigration pathways.

I strongly recommend to those considering immigration to Germany not to limit themselves to obvious options like employment or family reunification. It's always worth exploring all aspects of the legislation, including options mentioned in the guidelines of the Minister of the Interior, which may turn out to be more accessible than they seem at first glance.

Warnings

• Unfair schemes:It is also important to warn against unscrupulous schemes that may lead people to take risks and waste time.
• Fictitious sentences:One should not give in to the temptation of fake offers, as this can lead not only to disappointment but also to legal consequences.

Key success factors

Germany is opening its doors to those who are ready to offer something valuable, whether it's investments or business ideas. However, this must be approached with open eyes and a clear adherence to legal norms. Thus, the experiences of successful immigrants demonstrate that:

• Patience is an important element on the path to a new life.
• Accurate information is the key to successful immigration.
• A balanced approach will help avoid many pitfalls.

I am confident that by following these principles, anyone can find their way to the desired outcome.