INVESTOR’S BASICS

Entry and Residence
Germany offers various residence titles. The type of residence title required depends on the person's country oforigin, the length of the intended stay and the intended
business activity in Germany. Considering a business expansion into Germany the following titles are the most relevant:· Schengen visa
· Residence permit

Settlement Permit
A settlement permit is an unlimited permit for residence
and gainful occupation in Germany. Depending on the typeof residence permit this can be granted e.g. after holding aresidence permit for three years as a skilled employee or aself-employed person. The EU Blue Card offers even more
beneficial granting requirements.

· Settlement permit

Application - Visa / Residence Permit
Residence title

Entitlement

Schengen Visa

Enables the holder to entry and shortterm stays (up to 90 days in any 180-dayperiod) in Germany.

Residence Permit

Settlement Permit

Required for limited but long-term stays(more than 90 days in any 180-day period) or for work on a self-employed basis
or as an employee in Germany.
Unlimited permit for residence and gainful occupation in Germany.

Schengen Visa for Company Set Up
Citizens of many non-EU countries generally require aSchengen visa for entry and short-term stays in Germany.
This visa is generally sufficient for most steps required to
set up a company in Germany. Using a Schengen visa for
a company formation does not warrant residence permit
issue at a later date. If necessary, a residence permit for
self-employment or employment should be applied for indue time. A residence permit must also be applied for if theincorporation phase exceeds 90 days.

Residence Permit
Normally a residence permit is not required for the setting
up of a business. However, a residence permit is requiredin those cases where the foreign national intends to run abusiness or to work in Germany. Depending on the planned
activity, there are different options available to foreigncompanies planning to set up business in Germany and theiremployees.

Schengen visa generally have to be applied for at the local
German embassy or consulate general prior to entering
Germany. Visa exemptions apply for many countries. If aresidence permit is wanted, the application for a nationalvisa must usually be submitted to the relevant Germanembassy or consulate general before entering Germany. A
national visa allows entry to Germany, where a residence
permit can be issued. Some non-EU nationals may apply fora residence permit (self-employed or employed) after entry
into Germany without a national visa. This only applies tonationals of Australia, Canada, Israel, Japan, New Zealand,South Korea, UK, and the United States.
The application fee is in general EUR 80 for a Schengen visaand EUR 75 for a national visa. Additional fees of up to EUR
100 for a residence permit are also payable.

EU Citizens
Citizens of the European Union (EU) and the European
Economic Area (EEA) do not require any residence title
to be able to enter, settle or work in Germany. A registration at the local registration office (Einwohnermeldeamt) is sufficient, if they move to Germany.
Swiss nationals have to notify the local immigration
office about their long-term stay in order to obtaina residence permit certifying their right to free movement.

→ For further details please refer to:

www.gtai.com/residence-titles

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INVESTOR’S BASICS

Residence Permit for Self-Employment
Entrepreneurs from non-EU countries managing a company
on-site in Germany in a self-employed capacity require a
residence permit for the purpose of self-employment. Thispermit may be granted if the planned business is expected
to have a positive economic effect and has secure financing
in place. An individual assessment of the intended businessproject is then made, taking into account, e.g.: the viabilityof the underlying business idea, the foreigner’s entrepreneurial experience, the level of capital investment, effects on
the employment and training situation and contribution toinnovation and research. A residence permit for the purposeof self-employment is limited in time for up to three years.
A settlement permit can be granted after three years if thebusiness activity has been successful and is expected tohave a sustainable development in the future.

Who is typically considered self-employed?
• Entrepreneurs (including freelance professions)• Partners in a partnership• Majority shareholders of a GmbH who are also
managing directors of the GmbH

Residence Permit for Employment
Residence permits for qualified professionals are generally
issued where applicants have a concrete job offer, a sufficient qualification and approval from the Federal Employment Agency (FEA).
A reform of the Skilled Immigration Act – largely in force
since March 2024 - has further opened up the German labormarket to qualified professionals from outside the EU. Qualified professionals include university graduates and persons
who have successfully completed vocational training for atleast two years. Foreign qualification - both academic andvocational - must be checked for equivalence with German
qualifications and officially recognized. A new feature is
the possibility to do this after entry into Germany. For thispurpose, skilled workers and employers must agree on arecognition partnership. Work experience and qualifications
obtained and recognized abroad may also be sufficient insome specific cases.
Another new aspect is that skilled workers with a qualification obtained or recognized in Germany can pursue any
form of qualified employment and not just in the sector
in which they obtained their qualification. In addition,

employers based in Germany who have hired a foreign
skilled worker can speed up the visa procedure by applying
for a fast-track procedure on behalf of the foreign skilledworker for an extra fee. A residence permit can be granted
for up to four years, with a settlement permit issued after
three years.
→ For further details please refer to:

www.gtai.com/employees-residence-permit

EU Blue Card
The EU Blue Card allows qualified professionals with auniversity degree to be fast-tracked into employment in Germany. Through the reform, the EU Blue Card is now available
to a greater number of skilled workers as the salary threshold has generally been lowered. In addition, the scope of
the EU Blue Card for professions in special demand has beensignificantly expanded. Non-EU citizens may apply for thisresidence permit if they hold a German university degree (ora proven comparable qualification) and a job contract withan annual gross salary of at least EUR 45,300 (2024).
The annual gross salary level is EUR 41,042 (2024) in professions with a particular skill shortage. In addition to STEM
professions, this category also includes, for example, managers in production or logistics as well as an extended group of
healthcare professionals. Within this category, IT specialists
without a university degree but with at least three years ofrelevant professional experience in the last seven years canalso obtain an EU Blue Card. Regardless of profession, entry
level employees (graduated within the last three years) canalso benefit from the lower salary threshold. Approval fromthe FEA is required in all cases subject to the lower salarylevel. A settlement permit can be granted after 27 months –or after 21 months if the foreign citizen has attained a specified German language proficiency level.

ICT Card
Germany has also facilitated long-term intra-corporatetransfers of specific staff categories through the introductionof the ICT Card. This enables an intra-corporate transfer froma sending entity outside the EU to a host entity in Germany.
Both entities must be part of the same company or company
group. Eligible employees are non-EU managers and specialists who have been employed in the sending unit for at least
six uninterrupted months immediately preceding the transfer. Moreover, the work contract and, where necessary, theassignment letter e.g. need to state details of the transferand proof of the employee’s professional qualification. TheICT Card must be applied for at the competent German mission abroad and is subject to FEA approval.

FACTS & FIGURES 2024 | gtai.com

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