Investment in Germany

Are you planning to immigrate to Germany but don’t know how to obtain a legal residence permit? There are several methods for obtaining legal residency in Germany, the most effective of which is investment. However, there are different investment paths for those interested in living and working in Germany, each with unique characteristics. In the article from Wise Business Group, we examine two investment methods in Germany: passive income and starting an active business.

Obtaining German residence permits through investment:

Germany has advanced technologies and industries, strong infrastructure, and a stable and dynamic economy. If you, as a foreigner, plan to make investment in Germany and take advantage of these benefits, the most common methods for you are:

• Investing and earning passive income in Germany
• Investing to start an active business in Germany

These two methods have differences from each other, which we will mention below.

Investing and earning passive income in Germany

In this way, you can use your capital to purchase real estate or company shares in Germany. Such actions may result in earnings. However, they will often not qualify you for a German residence permit. Typically, investors with passive income cannot meet the requirements of paragraph 21 of the German Residence Act, which focuses on generating economic benefits and conducting business activity.

Investment to start an active business in Germany

Setting up an active business in Germany or investing in it when you have a management role will fundamentally change how things work. For example, you can establish a limited liability company (GmbH). Your chances of obtaining a residence permit will be much higher if your business in Germany also brings such benefits:

• Job creation
• Supporting the local economy
• Providing innovation

Read more about investment visa in Germany.

What causes the German immigration officers to approve your residence permit application?

• Direct involvement in a German business
• A business plan that demonstrates the economic impact of your business in Germany (we can help you write this business plan).
• Documents to prove financial capability and personal qualifications

Read more about Starting a business in Germany.

Which investment method in Germany is best for you?

Investing in Germany through passive income is great for your wallet, while setting up an active business can lead to obtaining German residency. So, if you’re serious about building your future in Germany, consider starting a business or investing as an active shareholder as a smart move.

Contact us for any questions or concerns about the different investment methods in Germany. We will review your circumstances and guide you in choosing the right path.

An overview of investment methods in Germany

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.

You can also complete the following form and send it to us. Our consultants will contact you as soon as possible, and after reviewing the initial conditions, hold an online consultation session.