If you’re an entrepreneur with the right skills, experience, and capital, Germany can be a great place to set up your business. Here is a rundown of how you can go about running a business in Germany and gain citizenship.

Germany Business Investor Residency Program

There are many ways to become a citizen of a new country and each route has its own special rules and requirements. Some countries have what’s called a Golden Visa program. This type of specialized visa offers long-term residency to investors, entrepreneurs, researchers, and other individuals with specific outstanding talents. In some cases, the program offers residency to those who purchase a house in the country or make a significant monetary investment.

Germany does not offer a Golden Visa program but you can obtain a residence permit in this country by starting your own business. You must first apply for a self-employment visa, also known as a visa for setting up a business, or an entrepreneurial visa. This visa gives you permission to enter Germany and set up your own business. Once you do so, and your business has been running successfully for six to eight years, you can apply for a residency permit.

Residency Requirements

In order to partake of the Germany business investor residency program,  you must meet a few requirements. First, you must own your business or be a majority owner. In addition, you need to live in Germany and become integrated within German society for a minimum of three years before you apply for residency. Following residency, after living in the country for a total of six years, you can apply for full German citizenship.

This program presents a slightly expedited route to becoming a German citizen as most newcomers can only obtain permanent German residency status after living in Germany for about four to five years.

In order to qualify for the Germany entrepreneurship visa, you must have:

• No criminal record
• Basic knowledge of the German language
• A minimum of 25 thousand euros to establish your business
• Confirmation you have enough funds to live comfortably in Germany
• A comprehensive business plan
• Relevant business experience

Entrepreneurs who meet these standards can be successful in this program and potentially flourish in the country.

German Citizenship by Investment Requirements

In addition to the requirements listed above, in order to obtain German citizenship through investment, your business must:

• Provide society with an innovative product or service
• Hire at least five people in Germany
• Have an average annual turnover that isn’t lower than the established minimum
• Be scalable
• Have a positive impact on the German economy
• Meet regional economic demand

Generally speaking, you must have a solid business plan in place and enough money to support yourself and your business. You must also provide a product or service that isn’t already available in Germany and that will have a positive effect on the local economy. Finally, you must hire people within the country to help you run your business in order to qualify for the program.

Legal

As with any legal permissions process, you need to have several things in place when applying for the German self-employment visa. This includes the following documents:

• A passport-sized photo
• A valid passport
• A complete application form
• A business plan
• Proof of comprehensive financial planning
• Proof of adequate funds (bank statements)
• Proof of the source of your funds
• Proof of registration with the German Trade Register
• Proof of health insurance
• If you graduated from a German university: a copy of your degree
• If you’re over the age of 45: proof you have adequate pension funds saved

It’s important to note the exact documents required can differ, depending on your nationality. Whether or not your family is joining you can also change the list. It can be beneficial to speak with a professional who can provide professional legal counsel in order to ensure your application meets all requirements.

FAQ

Can I get German citizenship in other ways?

Yes, you can also obtain German citizenship by descent if your parents or grandparents were German citizens.

How long does it take to obtain German citizenship by naturalisation?

If you have lived legally in Germany for a minimum of eight years and you have a legal residency permit, you can apply for German citizenship through naturalisation.

How long does my business need to operate in Germany before I can apply for permanent residency?

You need to have run your business successfully for six to eight years before you can apply to be a permanent resident in Germany.

What’s the unemployment rate in Germany?

The unemployment rate in 2022 was 4.31%.

Do many people in Germany have a higher education?

In 2018, 32% of young adults aged 25- 34 in Germany had a university or college degree.

Can I bring my family members?

If you invest in the German economy by setting up your own business as a foreigner, you can bring your family to live with you in the country. This includes all members of your immediate family, including:

• Your spouse or long term partner
• Any dependent children who are under the age of 18
• Any children who are older than 18 but dependent on you or your spouse either due to a health concern or financial circumstances.

Your family members can live a full life in Germany and work or study legally in the country. They will be eligible to apply for permanent residence after living in Germany for a minimum of five years.

Benefits of Investing in Germany

Starting a business in Germany can present numerous benefits and opportunities for you and your family. Due to the country’s strong economic standing and its central geographic location, Germany can be a great place to live and work.

Investing in Germany is a good idea because:

• Germany is home to one of the strongest global economies. Germany has a central location in Europe and a strong open market economy. This makes it a very attractive location for entrepreneurs searching for ideal places to set up a business.
• German citizenship gives you access to the EU. As a permanent resident or a citizen of Germany, you obtain the right to visit all EU countries without needing to obtain separate visas. Once you obtain German citizenship, you will be free to work, move, and invest in any country within the European Union, which can present a great advantage.
• Germany has a great quality of life. Germany is famous for its comprehensive healthcare, employment opportunities, and opportunities for quality higher education. It’s also home to innovation and rich culture. These factors make the country a positive place to live.
• Investment can lead to a German passport. Once you establish your business and run it successfully for six to eight years, you can apply for German citizenship and a German passport. This will give you visa-free access to over 180 countries worldwide.
• Germany is a great place to raise a family. Due to its well-established and world-renowned universities and its high-quality public schooling, Germany is a good place to raise a family. Reliable public infrastructure and beautiful countryside make this country very attractive to foreign investors.

Can I Get a German Visa by Investing in Real Estate?

In some countries, you can obtain residency, and sometimes even citizenship simply by purchasing real estate within its borders. This isn’t the case in Germany. You won’t obtain German citizenship by buying a property on German soil. You can, however, be granted a temporary residence permit if you purchase a home or a property in Germany. This permit gives you the right to be in the country for longer periods of time. It doesn’t allow you to engage in economic activity. In order to pursue German permanent residency  and citizenship, and to work or run a business in the country, you need to pursue other routes.

Can I Have Dual Citizenship in Germany?

Yes, German laws allow for dual citizenship. You can become a dual German citizen by:

• Being born in Germany to a foreign parent
• Being born abroad to German parents
• By naturalisation
• By having an ancestor who is German
• By retaining your citizenship from another country

Obtaining German Dual Citizenship by Birth

You can obtain dual citizenship by birth if you were:

• Born in Germany to a foreign parent and a German parent
• Born in Germany to parents who have multiple citizenships
• Born in Germany parents who have foreign citizenship
• Born outside of Germany to at least one German parent

You can also obtain dual German citizenship as a naturalised citizen if:

• Your other country is Switzerland or part of the EU/EEA
• Your home country won’t allow you to give up your other citizenship
• You sought refugee status in Germany
• You cannot give up your other form of citizenship because this would lead to economic and personal hardship

Key takeaways

Germany is a vibrant country with a thriving economy, ranked as the fourth-largest global economy. The country sits behind the US, China, and Japan in terms of its gross domestic product (GDP). As the most open economy among all the G7 states, Germany operates with a foreign trade quota of 84.4%. The vehicle, electrical, engineering, and chemical industries are the strongest sectors in the country.

With a number of high-performance, medium-sized enterprises within its borders, a strong heart is created in the economy. Almost all German companies have an annual turnover of less than 50 million euros and employ fewer than 500 people. In addition, a strong geographic location makes the country a prime place for international trade fairs.

What industries are in-demand and looking for foreign investors? High tech definitely stands out. In 2017, Germany ranked second behind the UK in terms of its attractiveness to foreign investors, when ranking for transportation infrastructure, political and legal stability, and a highly skilled workforce. All of these factors add up to make Germany an attractive location for entrepreneurs skilled at innovation and bringing new products and services to market for the benefit of all.

As a place to raise a family, access high-quality healthcare, and obtain an education while growing your business, Germany presents an attractive solution to foreign investors.