3 January 2024

Buy property in Germany and get a residence permit or German citizenship for investment: business immigration (emigration) to Germany

To view some of the properties we are selling, please follow this link! We can also find other properties for you.

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:

  • which properties or businesses are suitable for obtaining residence and permanent residence permits in Germany (by following the link, you will find business objects that are suitable for residence and permanent residence permits), and which are not,
  • how to obtain residence and permanent residence permits without purchasing property or a business in Germany,
  • how many years of residence in Germany are required to obtain permanent residence,
  • how much it costs to obtain residence in Germany and what is required, including time and financial costs.

Business Immigration – Germany: Ways to Obtain a Residence Permit Without Purchasing Property or a Business

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.

  1. Proof of Wealth of the person seeking the residence permit. If it’s an individual, they need to prove assets worth around one million euros. If it’s a family, for example, of three people, the amount should preferably be increased to one and a half million euros. The family’s income should be at least 7,000 euros per month.
    There is no need for all the assets and/or financial means to be in one person, as well as the companies they actually own. They can be held by family members, other companies, or relatives. All this can be properly documented when preparing the documents for applying for a residence permit.
    The cost of such a service ranges from 25,000 to 40,000 euros. The advance payment will be 15% of the service cost.
  2. Starting Your Own Company, which will operate in Germany and other countries.
    In this method, a company is usually established in the form of GmbH, which employs the person seeking the residence permit in Germany or several people.
    The company should pay about 3,000 euros per month to the state and insurance companies for two years, after which the employee will receive a permanent residence permit 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.

Time Frames for Obtaining a Residence Permit and Permanent Residence in Germany

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:

  • If purchasing a ready-made business or creating one, it takes from four to nine months to obtain a standard residence permit and after two years, to obtain permanent residence;
  • If going the route of proving the applicant’s wealth and, as an option, their family, it takes about six months to obtain the residence permit and after two years to obtain permanent residence in Germany.

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.

Buying Property in Germany and Residence Permits

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.

So, which types of properties are not suitable for obtaining a residence permit in Germany?

    Income-generating properties costing less than one million euros, or preferably, one and a half million euros.
  1. Apartments and packages of apartments costing less than one million euros.
  2. Investment projects funded by the state after their launch (guaranteed purchase of the produced product).
  3. Low-profitability and inexpensive types of businesses, even if they are low-risk.

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.

Residence Permit in Germany or Citizenship by Investment

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.

Some Services of Our Company Related to or That May Be Related to Obtaining Residence Permits and Permanent Residence

Our company and its partners offer services such as:

  • business immigration to Germany through the purchase of a business or commercial property,
  • obtaining residence and permanent residence permits,
  • selling ready-made businesses and commercial properties in Germany and some other countries,
  • selecting businesses and commercial properties,
  • selecting and supporting investment projects, some of which are available on our website.

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.

Buying Property in Germany and Residence Permits: Conclusion

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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United Kingdom: E14 5NR, England, Canary Wharf, London, Level 18, Bank str. 40
Germany: 50 Mainzer Landstrasse, Frankfurt am Main
Hong Kong: Wan Chai, Gloucester Road 160, Overseas Trust Bank Building, 6th floor, office A13
Russia: 127055, Moscow, Novoslobodskaya st. 20, 3rd floor, office 33
+38 095 555 1257 (Whatsapp, Telegram, Viber)
https://t.me/invest_makler (Telegram Channel)
info@investmakler.com
https://investmakler.com

 

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