German residence through investment

German residence through investment

One of the interesting and hot topics about immigration to Germany is obtaining German residence through investment. People who intend to immigrate to Germany in this way must start a business in this country, which has a significant impact on the German economy. Although this method of immigration is suitable for a small number of people, that is, for entrepreneurs and investors, there are many applicants who want to learn more about German residence through investment. This article will answer your basic questions in this field.

Due to the increase in the average age of the population, as well as the improvement of its economic power, Germany has provided the possibility of immigration and residence in Germany through investment for those who intend to obtain the citizenship of this country. In fact, the German government kills two birds with one stone, on the one hand it attracts young and skilled immigrants, and on the other hand, it creates a driving force to keep its economic wheels moving. Although there are relatively complicated and difficult conditions for obtaining German residency through investment, it is not possible to follow this path. Read this article to the end to get more details about obtaining German residency through investment, investment conditions in Germany, etc. In this article, we tried to collect your most frequent and important questions and answer each and every one of them.

What does it mean to get German residency through investment?

According to the laws of Germany, foreigners do not have any prohibition to invest in this country, and any person who wants to can manage or develop his business, and obtain German residency through investment.

get German residency through investment

How can one obtain a German residence permit through investment by establishing a company? 

There are four main methods for obtaining a German residence permit through investment:

Launching a professional business (such as a grocery store, restaurant, etc.)

 With this approach, there is no need to register a company. Obtaining approved trade licenses in Germany (Gewerbeanmeldung) allows you to start your desired business.

Establishing a branch or representative office

Another method for obtaining a German residence permit through investment is to establish a branch or representative office. If you own a significant and reputable production facility in Iran, you can be recognized as a full merchant (Vollkaufmann) and are allowed to establish a branch in Germany for your business.

Registering a limited liability company

If you are the owner of a reputable company in Iran and intend to establish a similar company in Germany, you can pursue German residence through investment using this method. You need a minimum capital of 25,000 euros, and the company you establish will be a completely independent German entity with limited liability.

Registering a partnership company

Registering a partnership company is another method for obtaining a German residence permit through investment, with similar conditions to registering a limited liability company, although the type of registration (company credit and shareholder liability) differs."

Ways to obtain residence in Germany through investment

To secure residence in Germany through investment, one must invest in the country's economy. There are generally six investment methods in Germany:

Investment through company registration

Registering a company in Germany is a viable option for obtaining residence through investment. Prospective entrepreneurs must familiarize themselves with German tax laws and present a strong business plan approved by the German government, as only businesses contributing to the country's economy are endorsed.

Investment through self-employment

Self-employment, a form of entrepreneurship, is another investment method for obtaining German residence. Approval by the German embassy is contingent on presenting a viable and lucrative business plan.

Investment through real estate acquisition

Purchasing real estate is a common investment method for obtaining German residence. Applicants can buy a property at a specified minimum price and subsequently apply for residence. It's important to note that solely purchasing property does not guarantee residence; investors must present an acceptable business plan aligned with real estate transactions.

Investment through entrepreneurship in Germany

Individuals aspiring to be entrepreneurs in Germany can pursue this in two ways. In the first method, applicants need to obtain other visas, such as study or work visas, and then embark on entrepreneurship upon arrival. In the second method, presenting a professional and robust business plan may lead to the issuance of an entrepreneurship visa.

Investment through purchasing government bonds

Buying government bonds is another method for obtaining residence in Germany through investment. Prospective investors require initial capital and a brokerage account, and if their selected brokerage facilitates access to ETFs, they can directly engage in buying and selling stocks.

Investment through purchasing a business

Acquiring an existing business is also a recognized method for obtaining residence in Germany through investment. Applicants can purchase an active business, ensuring it is not inactive or bankrupt, as residence cannot be obtained through the acquisition of non-operational or failed businesses.

Ways to obtain residence in Germany through investment

How to get German residence through investment and how long does it take?

The process of receiving Germany through investment is that, at first, the applicant's documents are officially translated and sent to the German embassy. If the documents are approved by the German Embassy, they will be sent to the German Vikilan together with the explanatory plan, so that if the plan is approved at the company registration office in the desired state, they may conduct economic activity to obtain a license. Finally, the necessary documents will be sent to Iran so that applicants can register their application by visiting the German Embassy. It should be noted that this process takes time and will be different for each case. But it usually takes about 7 to 10 months.

Minimum capital required for residency in Germany through investment

Individuals intending to obtain residency in Germany through investment should be aware of the minimum capital required for this migration method. It is important to note that the minimum required capital depends entirely on the method chosen for migration to Germany. However, for residency in Germany through investment, the minimum required capital is €25,000.

Minimum capital required for residency in Germany through investment

Documents required for obtaining residency in Germany through investment

To migrate to Germany and obtain residency in the country, you will need to collect and submit certain documents, and naturally, for obtaining residency in Germany through investment, you will need specific documents. The key documents required for investment in this country include:

- Presentation of identification and personal documents

- Two recent passport-sized photos (3x4)

- Proof of financial capability

- Presentation of valid insurance and passport, along with a copy of each

- Presentation of employment contract or the last three months' payslips

- Document related to company registration

- Payment of visa fees (€60)

- Presentation of marriage or birth certificates of children

- Valid invitation letter from business partners

- Invitation letter from the company (in case of investing in company registration)

- Presentation of lease or ownership certificate of the place of employment

- Travel itinerary and address of residence in Germany

It is worth mentioning that these documents are among the most essential requirements, and depending on your chosen method for obtaining residency in Germany through investment, you may need additional documents. You can obtain the complete list of these documents from the German Embassy.

Can German citizenship be obtained through investment-based residence?

 The answer is yes. Utilizing German residency through investment can lead to permanent residency or citizenship, but it comes with its specific conditions and requirements. Generally, after the approval of the business plan and achieving success in establishing the company, applicants can apply for the conversion of their temporary residency to permanent residency in Germany after three years. The conversion of immigrant residency depends on the success of the company, financial viability, full compliance with legal obligations including insurance and taxes, and having an acceptable three-year outlook.

The cost of residence in Germany through investment

The cost of residence in Germany through investment varies, with the primary expense being the required initial capital. Short-term Schengen visas for Germany are free for children under 6, around 35 euros for ages 6 to 12, and approximately 60 euros for those above 12. Long-term visa fees are 31 euros for individuals under 18 and 80 euros for those over 18.

The cost of residence in Germany through investment

Benefits of obtaining German residence through investment

The cost of residence in Germany through investment include a relatively short processing time, no language proficiency requirement, the opportunity to establish a business in one of the safest countries globally, family reunification possibilities, and the ability to live in both the Schengen area and Germany. Additionally, residents enjoy rights similar to European citizens without the need to register the business startup process.

However, this immigration route has its challenges, including the relatively high costs involved, German tax, renewal expenses, the need for documentation related to economic activities in the home country, legal strictness in establishing branches or representative offices in Germany, and the substantial initial capital required.

In summary, obtaining residence in Germany through investment is a specialized and limited immigration option due to the high initial capital and associated business establishment costs, attracting a specific group of applicants.

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