self employment in Germany
August 2, 2025
Earning passive income and starting an active business are two ordinary investment options for foreigners in Germany. Yet the vital question is: which of these two methods is best for you?
According to paragraph 21 of the German Residence Act, you can only obtain a residence permit in this country if:
• Have started an active business.
• Your business could create economic benefits in the target area.
• Have sufficient funds to cover your living and business expenses.
Therefore, starting an active business could be a good option if you plan to obtain a German residence permit. While earning passive income by buying real estate or simply shares in a company in Germany can only help you increase your capital.
September 10, 2025
Getting a loan to start or develop a business in Germany is often associated with challenges. Almost all German banks carefully check the following before granting a loan:
1. Having a detailed and professional business plan
2. The applicant's experience and work history in the desired profession
3. The financial health of the business and the person applying for the loan
4. Collateral and guarantees provided
5. Location and market capability
6. The purpose and structure of the loan requested
7. Legal compliance and required business permits
8. Communication with the relevant bank, commitment, and transparency in providing information
9. Complete and professional presentation of required documents
By being aware of the above factors, planning carefully, and providing complete and comprehensive documentation, you can increase your chances of obtaining a business loan in Germany. Seek help from advisors and experts to create a strong financial plan.
