Golden Visa in Germany 2024 – What is Possible?

Some European countries made it possible for those who invest in real estate in their countries to gain residency or citizenship under so-called “Golden Visas”. Countries that had such “Golden Visa” schemes included Malta, Ireland, Portugal, Spain and Cyprus, but what about Germany in 2024? Can investing in real estate in Germany bring about citizenship or residency? This article will explore the options available regarding how to get German residency and citizenship and whether there is a Golden Visa in Germany.

It should be clarified that some countries, such as Ireland and the Netherlands, have now ended their Golden Visa programmes for new applicants. Other countries in the European Union are drastically changing their rules around them to prevent abuse of the system. Such changes across the EU were introduced on a widespread basis following the start of the Ukraine War in 2022 due to some concerns that these schemes could be a security risk.

The Golden Visa: What are the Benefits and Requirements?

A Golden Visa is a type of residency-by-investment program offered by several countries. Under this program, individuals can obtain temporary or permanent residency in a country by investing significantly in its economy. With a Golden Visa, the holder does not need to have ancestors from or familial links to the country in question to gain citizenship or residency.

The requirements and benefits vary depending on the country offering the Golden Visa. Still, typical investment options include purchasing real estate, making a substantial financial contribution to a government fund, or investing in businesses that create jobs or contribute to economic development.

Golden Visas are often sought after by high-net-worth individuals seeking residency rights in another country for personal or business reasons. These programs can provide benefits such as visa-free travel within particular regions, access to healthcare and education services, and potentially a pathway to citizenship in the long term, depending on the country’s naturalisation laws. However, they have also been scrutinised and criticised, particularly regarding their potential for abuse, such as facilitating money laundering, tax evasion, and other illicit activities.

Criticism of Golden Visas in Europe

The sale of Golden Visas and Golden Passports by European countries has been a concerning issue for the European Union. MEPS have criticised the practice, and the European Commission has taken legal action against states such as Malta and Cyprus over the issue. MEPS stated that the inherent risks within these programmes include money laundering, tax evasion and corruption. Research conducted demonstrated inconsistencies and serious irregularities with how Cyprus the country conducted its Golden Visa scheme. Between the years 2007 and 2020, Cyprus provided close to 7000 applicants with Golden citizenship.

In February 2023, Portugal’s Prime Minister, António Costa, unveiled plans to bring an end to the country’s lucrative residency-by-investment program aimed at curbing property and rental price speculation. Prior to this decision, foreigners could obtain residency by either purchasing property or making capital transfer investments in the country. As of October 6, 2023, applications for golden visas through real estate investments in Portugal have been suspended. It’s worth noting that these new regulations do not affect current visa holders retroactively.

How Golden Visa programmes will develop from here is difficult to predict. With many MEPs and members of the European Commission opposed to them, it looks set to be a significant legal battle. Malta has stated that citizenship rules are a matter for the state itself to decide upon, but EU citizenship also provides rights such as European Freedom of Movement.

The Golden Visa in Germany?

In contrast to other countries, Germany does not provide a Golden Visa programme; however, there are alternatives. One alternative can be found under § 21 German Residency Act/Aufenthaltsgesetz in the form of a Residency Permit for Entrepreneurs. Under this programme, the applicant can obtain a permanent residence visa after three years and apply for German citizenship by residency after five years.

The difference between this and the Golden Visa programme is that the applicant must take a more active role in Germany. Instead of investing in property, the applicant has to establish a business that will benefit the German economy. Applicants cannot simply invest finances and gain residency or German citizenship.

The following is a brief overview of what is necessary when forming a company in Germany (an investment company and other companies). Contact us directly for specialised assistance with opening a company in Germany.

The German Entrepreneurial Visa: What Is Required?

The entrepreneurial visa may be granted should the applicant present a business plan that fulfils specific requirements. These necessities include: the business plan must demonstrate that the business meets an economic interest or regional need. It must positively impact the economy, and the financing must be secured by equity capital or a loan commitment. After submitting a plan, the German authorities will examine it in detail to ensure it meets these criteria and others (such as the financial commitment and the applicant’s previous business experience).

Other advantages of this visa include:

• the applicant does not need to demonstrate proficiency in German or conduct language tests,
• their family will also be provided with permission to reside in Germany,
• German citizenship is fast-tracked so that it can be granted in six years.

If a candidate requires assistance with their application under the §21 German Residency Act, contact our immigration law team directly. As part of our services, we offer detailed relocation services. Our lawyers assist clients in drafting business plans and ensuring they fulfil the requirements under the Germany Residence Act.

Advantages of German Citizenship

Even without the opportunity to get a Golden Visa, it is worth considering gaining German citizenship. There are many advantages as the German passport is one of the most powerful passports globally. Situated at the very heart of Europe, German citizenship opens up the entirety of the continent of Europe and the opportunities within it. In real terms, German citizenship allows one easy access to the European markets for investment and other options. Furthermore, Germany is a safe, secure, and prosperous country to raise a family with excellent universities and education facilities.

Our Law Firm: German Immigration Law Expertise

Schlun & Elseven Rechtsanwälte is a full-service German law firm specialising in immigration law. We work with clients worldwide from our offices in Cologne, Düsseldorf, and Aachen, as well as conference rooms across the major cities of Germany. We provide expert legal advice to our clients on various immigration issues and other legal areas. If you need assistance with German immigration issues, please do not hesitate to contact our firm directly.