We provide services for obtaining residence and permanent residence permits with or without purchasing a business/property. Leave your application and receive an offer!
Dear reader,
Germany, business, immigration—if these words and their meanings have been relevant and familiar to you recently and you are contemplating emigration, we will explain a few ways to obtain residence permits in Germany. In this article, we will also discuss some of these methods, particularly those that our company and its partners, with over 20 years of experience, are involved in. We will provide links to properties and businesses that our company is selling and that are suitable for obtaining residence permits in Germany. We will also explain which types of businesses and properties are not suitable for obtaining residence and permanent residence permits in this country.
After reading this article, you will have an understanding of:
There are other, so-called hybrid ways to obtain a residence permit in Germany, where purchasing property or a business is not mandatory. Our company assists with such types of residence and permanent residence permits in Germany.
Let’s consider some options for obtaining residence permits that do not require the mandatory acquisition of a business or commercial property in Germany.
Thus, over two years, you need to pay 72,000 euros to the German state and insurance companies. This is a considerable amount for an average resident of CIS countries, such as Russia, Ukraine, Belarus, Kazakhstan, Moldova, Armenia, Uzbekistan, Azerbaijan, and others.
Our company’s services for this type of business immigration to Germany will cost around 10,000 euros, with a 50%/50% payment arrangement. Half of the amount is paid after signing the contract, and the second half after receiving the residence permit.
Regarding the time frames for obtaining a residence permit and permanent residence in Germany, it can be said that it is not that long. For example, in Italy, where we also process residence and permanent residence permits, the process takes significantly longer, exactly three years (for permanent residence)!
So, let’s list the options:
Thus, we see that the average duration for obtaining a residence permit in Germany is about 6 months, and the period required to reside in the country to obtain permanent residence is 2 years.
Not all types of properties and businesses in Germany are suitable for obtaining residence permits. This is often due to their low profitability and high taxes in the country, as well as the need for mandatory insurance and other expenses.
Why is this the case?
Income-generating properties in Germany have a profitability of about 5% – 6% per annum, and taxes for an individual or family (husband, wife, and minor children) amount to about 3,000 euros per month when applying for residency.
For example, take an income-generating property estimated at 500,000 euros and calculate based on a 5.5% annual return on such a property. This means that 5.5% of 500,000 euros annually is 27,500 euros, which is divided by 12 months, resulting in 2,291 euros per month in net profit. Meanwhile, the state and insurance companies must be paid around 3,000 euros.
Conclusion – not profitable! A minimum of 6,000 euros in monthly income is required.
Apartments and their packages face the same situation as low-profitability businesses. However, there are some exceptions. For example, you can purchase a package of apartments with a total cost of more than one and a half million euros. In this case, the taxes paid would be profitable for obtaining residency, and you would still have something left for living expenses. There should be at least 3,000 – 3,500 euros per month remaining for an individual or a family with minor children. Such apartments need to be registered under a company (usually a GmbH), as it is considered pure entrepreneurial activity, known in Germany as “rental business”.
With investment projects funded by the state, such as biogas plants, the situation is somewhat different. These have the highest profitability among the available objects for sale in Germany. However, obtaining a residence permit by purchasing such projects is not always successful. By the way, although it deviates from the topic, it is worth noting that such plants are also considered low-risk investments, as their successful operation (for those we offer) is guaranteed by the state and one of the largest manufacturing and management companies. Their only downside is that they are not eternal (with a lifespan typically from 8 to 20 years) and the capitalization of their land (if the plant is purchased with land) is lower than in major cities because these plants are located outside of them.
Why is this the case? The answer is simple: Since the German government guarantees the purchase of everything produced by a biogas plant according to long-term contracts already signed, and the operation of such a plant is managed by a large corporation, it is considered a pure investment that does not require active participation in its operation. For this reason, German authorities are very reluctant to grant residence permits or permanent residence to such investors.
What types of businesses are definitely suitable for obtaining a residence permit (RP) in Germany, and after living there for at least two years, for obtaining permanent residence (PR)? The price of such objects starts from 150,000 euros and can include various types of businesses, whether small, medium, or large scale.
Among them:
Regarding the first category of business objects, they are suitable due to their high profitability when the owner and their family members personally manage the business and employ staff. The second category typically has good profitability and a much higher value, making it profitable and advantageous to obtain a residence permit in Germany by purchasing such properties.
Our company and its partners offer services such as:
If you are interested in what aspects and factors to pay attention to when choosing and purchasing a ready-made business, we recommend reading the adjacent article on this topic. You will find all the objects we have for sale at this link. Whether to buy a ready-made business or start a new one can be read here, and about commercial real estate here. There is also a separate material on our website about investments in commercial real estate, as well as about investments in income-generating properties (although about income-generating properties in Austria, but there are no major differences), and about rules for real estate registration.
You can read about registering a GmbH mentioned in this publication in this article, and its pricing in this one. If you are interested in the specifics of starting and running a business for Ukrainians, Russians, and other CIS nationals, please review this article.
It can be said that this article provides enough material for an approximate understanding of business immigration to Germany, as of 2020. If you, dear reader, have any additional questions, we are ready to provide answers and assist in resolving these matters from start to finish.
As you can see, a residence permit (RP) in Germany can be obtained either by purchasing property (preferably commercial) or by other means. Therefore, please contact our company if you want to buy property (preferably commercial) in Germany and/or obtain a residence permit.
Our contacts:
INVESTMAKLER
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