investment 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 25, 2025
Investing in shares of a GmbH in Germany at a glance
• In general, company decisions regarding shareholder loans, retained earnings, dividend distributions, and taxes can have a significant impact on the return of your investment in Germany.
• Receiving profit through annual profit distribution, accumulating profit, and increasing the future value of shares, or receiving a salary as a CEO, are the most common methods of earning profit from this type of investment.
• The value of your shares in a GmbH in Germany is not limited to its nominal value. It can increase.
• When buying shares, ensure that clear financial rules and policies are in the articles of association.
