How Can I Get A Golden Visa in Germany?

Unlike other countries like Portugal, Spain and the UAE, Germany doesn’t have a traditional golden visa.

Typically, a golden visa refers to being able to ‘buy’ residency in a country through a passive investment like real estate. Whilst Germany doesn’t have this, it does have opportunities for entrepreneurs and investors looking to move there.

Under Section 21 of the German Residence Act, investors in the German economy are able to receive temporary residency, which could eventually lead to citizenship after 5 years.

For those in the UK that are looking to move to Germany, here’s everything you need to know about their Investment Residency visa.

 

Why Invest in German Companies?

 

Germany is one of the biggest economies in Europe, and is a leader in areas like tech, finance and the motor industry.

Germany is also a great country to live in, providing residents with great infrastructure, an affordable cost of living (in most places!) and easy trade with other EU markets.

German residents also get visa-free travel within the Schengen Area, which is made up of 27 European countries.

The other benefits of the visa include family inclusion (spouses and children under 18 also join) as well as access to the country’s high quality healthcare and education systems.

 

How To Get German Residency Through Investment

 

To get German residency through investment, applicants must establish a business that:

• Benefits the German economy
• Has a minimum investment of €360,000 (not officially needed but comes highly recommended)
• Creates at least 5 full-time jobs within Germany
• Is managed by someone with relevant experience in the sector

The applicants themselves must also:

• Be over 18
• Have no criminal record
• Provide a business plan that is approved
• Show proof of investment funds
• Commit to living in Germany for at least 6 months per year and make it your main residence
• Have German health insurance
• Have a pension plan laid out (if applicant is over 45)

 

 

How To Apply For German Visa Through Investment

 

If you decide you want to go ahead and apply for the visa, here is what you’ll need to do:

 

Step 1: Create A Business Plan

To start, you’ll need to provide a business plan that ticks all the boxes that the visa asks for.

Working with a specialist consultant is a good idea if you want to improve your chances of approval, but the business plan should include:

• What the business will set out to do
• Why Germany needs your business
• How it will benefit the German economy
• What 5 jobs it will create for German people
• Where the investment is coming from
• Information about yourself and your experience

 

Step 2: Submit The Business Plan

Once laid out, your business plan will need to be submitted to the German Chamber of Commerce (Industrie- und Handelskammer, IHK).

The processing can take a few weeks, and once it’s approved you can start applying for the visa.

 

Step 3: Apply For The Visa

Next, you’ll need to go to the German Consulate or Embassy where you live to submit all relevant documents.

You will need:

• Your passport
• Your approved business plan
• Proof of funding
• Proof of health insurance
• Clean criminal record

Once submitted, processing can take anywhere from 4-6 months.

Once approved, you will be able to go to Germany and apply for your residence permit. This will give you residency for 3 years as long as you stick to the terms which include being in the country for at least 6 months of the year.

Once those 3 years are up, you can apply for a permanent residency as long as your business is still operating and you can prove financial self-sufficiency.

After 5-8 years, you will be eligible to take the German citizenship test and apply for full citizenship.

 

Tax Implications Of The German Investment Visa

 

One of the biggest considerations, apart from how you plan to operate the business, is the taxes.

In Germany:

• Business owners pay corporate tax (15%) + trade tax (though this depends on the region).
• Double taxation treaty with the UK means you won’t pay tax on the same income twice.
• VAT is 19% if previous year turnover was €25,000 and current year is forecast to exceed €100,000.

 

Alternative Golden Visas in The EU

 

Compared to other EU countries, the investment visa in Germany is quite a bit harder to secure. It not only requires you to run a business full-time, but you must commit to being in the country for 6 months of the year.

Alternative golden visas like Portugal and Greece allow people to invest in real estate to see the visa benefits, which could be a slightly easier option.

 

Germany’s Golden Visa: Is It Worth It?

 

Germany is one of the biggest economies in Europe, and definitely presents an exciting opportunity for entrepreneurs.

However, applying is only worth it if you have a solid business plan, a way to fund it and an appetite to work hard.

Once received, Germany can be a great place to raise a family and start a business. Good luck!