Germany: Golden Visa, Business Visa, Self Employment Visa, and Investment Visa Options in Germany
Germany is a developing center of industry, manufacturing, and engineering, and is recognized as one of Europe’s leading economic powerhouses. The combination of business and immigration invites foreign nationals to invest in a regional development fund to become permanent residents.
1- Business visa of Germany
Unlike some other European countries, Germany does not formally issue “golden visas”. However, there are other alternatives. An alternative under the Res21 German Residency Act / Aufenthaltsgesetz can be found in the form of a residence permit for traders/business personals. Under this program, the applicant can obtain a permanent residence visa after three years and apply for citizenship after six years.
The difference between this program and the Golden Visa program is that the applicant has to play a more active role in Germany. Instead of investing in a property, the applicant has to invest in creating a business that will create jobs and benefit the economy.
Business investors and self-employed people can obtain a residence permit in Germany by acquiring or forming a company. This process is called business immigration.
Major benefits of the business or self-employed visa
There are many different major benefits of getting a visa of Germany for self-employment or for business purpose such as:
- The total capital expenditure, including all fees, is as low as €360,000
- Access of free movement in 27 EU block countries
- Permanent Residence is issued after 3 years of temporary residence permit for main Applicants
- Permanent Residence is issued after 5 years of temporary residence permit for dependants
- After residing in Germany for 8 years, applicants can apply for citizenship.
- The German passport additionally allows you to travel to more than a hundred and seventy international locations without a visa.
- In Germany, for example, anyone has the right not only to live, but also work, and stay in the EU (27) countries
- Germany is a safe, impervious, and prosperous country with a family of awesome universities and instructional facilities.
General requirements of Germany’s Business/Golden visa
There is no minimum investment for a business visa in Germany. According to some experts of German foreign affairs, one should invest at least €50,000 in the German capital in order to qualify for the business visa stream. Entrepreneurs and business investors are admitted to Germany if they make a business investment in Germany that creates at least five jobs in Germany with economic benefits. With a Golden Visa, one does no longer needs to have ancestral or family ties to the country in the query to gain citizenship or residence. Similarly, different regular requirements such as living in the country or beginning a commercial enterprise in this country are now not integral for housing and citizenship. Business Capital €50,000 Legal fee is €30,000=Total €80,000
To obtain a German residence permit as a self-employed person, it is mandatory to show that this business will have a positive impact on the German economy, ie there is an economic interest in the business and/or there is a regional need for this business, and this financial Support is protected. Businessmen need to know that their business will increase market potential as well as sales opportunities for other German businesses and will have a positive impact on the economy. In addition to the booming economy, differences are found in factors such as the amount of investment required, the areas in which the investment should be made, and in some cases the geographical location of immovable property. In addition, the main applicant must not be less than the age of 18 and have a clean record (proven through character certificate).
Which visa is provided to Businessmen and self-employed?
Foreign investors are eligible for a long-term ‘D’ visa or residence permit (temporary residence) in Germany after investing in the business. Self-employed entrepreneurs can obtain a residence permit through §21 (Aufenthaltsgesetz) by acquiring or starting a German company or investing in existing companies. The duration of a residence permit is usually two or three years which can be extended.
How to prepare for applying for a visa and setting up a company?
- Develop a business plan
- Discuss the business plan with the local Chamber of Commerce and Industry
- Apply for a visa according to §21 AufenthG
- Entry into Germany
- Registration with the local registration office Involving a company (such as the GmbH Foundation)
- Apply for a residence permit by submitting all documents.
Visa conditions
The application may include with their visa application the children (under 18) dependent on them and their spouse. Temporary residence visas will be issued initially, with the option to apply after three years for main applicants for permanent residence and five years for other family members. It is possible for family members to apply for German citizenship after 8 years of residence, provided they have resided permanently in Germany for 8 years and passed the German language test, and have integrated well.
2- The German Entrepreneurial Visa and requirements
A business visa can be granted when the applicant submits an enterprise design that meets major requirements. These necessities include a business plan that meets an economic activity or regional need, it should have an advantageous effect on the economy, and need to be financed through fairness capital or debt commitment. After submitting a plan, it will be scrutinized in detail to make sure it meets these standards and some different matters (such as economic commitment and the applicant’s previous commercial enterprise experience). Other advantages of this visa include:
- German citizenship is fast enough to be granted in six years
- The applicant’s family will also be granted a residence permit in Germany.
- The applicant does not need to demonstrate proficiency in Germany or take a language test.
3- Real Estate Residency in Germany
Although not explicitly referred to as a “Golden Visa”, there is also the possibility of obtaining housing through the immovable property. One can be entitled to a residence permit by investing in property in Germany. You have to provide evidence that you are capable enough to bear all the expenses of you and your family in Germany. Germany does not issue visas or residence permits solely on the basis of immovable property. Therefore, this option is not available to foreign investors. Residents with a residence permit can freely purchase real estate in Germany as a business investor. There is no minimum or maximum requirement to buy real estate. Property in Germany is very expensive in terms of real estate and state. Here are some insights on real estate costs and expenses (approximate and subject to change):
- Notary cost for real estate (purchase price for 300k euros approximately 3000 euros)
- Broker fee: 3.5% of purchase price
- Land registry fee (purchase price for 300k euros approximately 4000 euros)
- Real estate tax: 6.5% of purchase price
Application Process
If you choose a business investment option in Germany you must have business plans, and it is necessary to invest in a German company. The following steps may help you:
- Apply for first approval at the local immigration office.
- Notary appointment and payment of purchase price.
- Visa application at the German embassy.
- Admission to Germany with visa and registration.
- Applying for a residence permit