Are you a foreign national seeking the opportunity to enjoy an extended stay in Germany without pursuing employment? Are you an individual with independent means due to a high level of personal income? If so, you may be eligible for a residence permit under § 7 (1) German Residence Act (AufenthG). This article explores the eligibility criteria, application process, and benefits of this unique residence permit designed for individuals wishing to live in Germany while relying on their personal wealth.

Eligibility for a Residence Permit under § 7 (1) Sentence 3 AufenthG

Purpose of Residence Not Specifically Regulated

To qualify for this type of residence permit, the purpose of your stay must be independent of the legally regulated purposes outlined in Sections 16 to 38 AufenthG. These include education, gainful employment, family reunification, humanitarian grounds, or reasons related to international law.

In other words, this residence permit applies to individuals whose purpose for staying in Germany is not explicitly provided for in the law. Wealthy individuals who wish to reside in Germany and live off their personal assets typically fall into this category. However, this permit cannot be granted if the applicant merely fails to meet the criteria for an already regulated residence purpose (VG Freiburg, Judgement of 18 July 2018, 1 K 1083/17, para. 24).

Justifiable Purpose of Residence

The residence permit can only be granted if there is a justifiable reason for the stay. This reasoning means the purpose of the residence must be objectively reasonable and not conflict with the legal system or public interest (VG Freiburg, Judgement of 18 July 2018, 1 K 1083/17, paras. 28, 31).

A justifiable purpose includes the desire to reside in Germany while living off the income generated from personal assets. This purpose is generally considered valid if it reflects a legitimate and comprehensible interest in staying in the country (Maor in Kluth/Hund/Maaßen, Zuwanderungsrecht, 2nd ed. 2017).

General Requirements for Granting a Residence Permit Under § 5 AufenthG

In addition to the specific criteria for a residence permit, applicants must meet the general requirements outlined in § 5 AufenthG. These requirements ensure the applicant’s ability to reside in Germany without posing a financial or legal burden.

Secured Livelihood

A key requirement is the applicant’s ability to secure their livelihood independently. The applicant must have sufficient personal resources to cover living expenses without relying on public funds, except for contribution-based benefits such as pensions or unemployment insurance. Adequate health insurance coverage is also mandatory.

The Administrative Court of Stuttgart (decision of 10 June 2010) clarified that “assets” in this context include existing capital and claims to regular payments, such as pension entitlements. Other qualifying sources of income include assets generating recurring interest, such as bank savings, deposits, or securities (Administrative Court of Freiburg, judgment of 18 July 2018, 1 K 1083/17, para. 7).

The applicant’s means of subsistence must be sustainably guaranteed for the entire duration of their stay. Authorities determine this through a prognosis that considers all relevant circumstances of the case (Bavarian Higher Administrative Court, judgment of 1 October 2008, 10 BV 08.256, para. 23).

Identity and Nationality Verification

Applicants must provide proof of their identity and nationality by submitting a valid passport or an approved passport substitute.

No Interest in Expulsion

There must be no grounds for expulsion, such as criminal convictions or threats to public security. Additionally, the applicant’s stay must not harm or jeopardise Germany’s national interests.

Visa Requirement

As a rule, applicants must enter Germany with the appropriate visa to qualify for a residence permit. A visa application, including all necessary details for the residence permit, must be submitted before arrival. A national visa is required for stays exceeding 90 days, and its approval is based on the same criteria as the residence permit.

These general conditions ensure that the applicant’s stay in Germany aligns with the legal framework and broader public interests, providing a solid foundation for their residence permit application.

How is the Application for a Residence Permit Decided?

The decision to grant a residence permit lies at the discretion of the responsible immigration office. Each application is assessed on a case-by-case basis, considering all relevant circumstances. Key factors include balancing the applicant’s legitimate interests against public interests, evaluating economic and labour market policy considerations, and assessing the applicant’s ability to integrate into German society (Administrative Court of Freiburg, judgment of 18 July 2018, 1 K 1083/17, para. 38).

According to the Freiburg Administrative Court’s ruling, there is typically no reason to deny a residence permit if the applicant is financially independent, no grounds for expulsion, and no housing shortage. In such cases, the immigration office’s discretion may be significantly narrowed, obligating it to approve the application if no legitimate objections exist.

Time Limitation of the Residence Permit

Residence permits issued under § 7 (1) AufenthG are temporary. The immigration authority determines the exact duration and may not necessarily match the length of stay requested by the applicant. As a rule, the permit’s validity cannot exceed the expiration date of the applicant’s passport (see NK-AuslR/Kerstin Müller, 2nd ed. 2016, AufenthG § 7, para. 16).

Under § 8 (1) AufenthG, extensions are possible. However, granting a temporary residence permit does not automatically confer a right to an extension. The same rules and criteria applied during the initial application process will also govern the extension decision, which remains at the discretion of the immigration authority.

Required Documents for a Residence Permit Application

To apply for a residence permit, you must submit a formal application as specified in § 81 (1) AufenthG. The application should include:

• Purpose and Duration of Stay: A detailed explanation of why you want to move to Germany, the intended duration of your stay, and the specific city where you plan to reside.
• Financial and Health Insurance Proof: Documentation demonstrating how you will finance your living expenses and secure adequate health insurance. This typically includes evidence of assets and income.
• Proof of Identity and Nationality: A valid passport or passport substitute is required. Additional documents, such as a birth certificate, may also be submitted if necessary.
• Language Proficiency: Although not mandatory, providing certificates of German language skills can strengthen your application.

Please do not hesitate to contact us if you need further assistance or personalised legal advice regarding your residence permit application. Our German immigration law team is ready to guide you through every step of the process.