The Legal Basis for Real Estate Immigration
However, the question arises as to what the legal situation is in Germany in this regard. What option does a wealthy foreigner have in Germany who wants to settle with their assets? Section 7 (1) sentence 3 of the German Residence Act (AufenthG) provides the legal basis for wealthy non-employed persons to obtain a residence permit.
This subsection enables residency permits to be granted for purposes not explicitly stated in the Residence Act. For instance, it covers those with sufficient resources and financial support who may wish to settle in Germany to live off their own assets here. Until recently, such an option seemed out of reach. However, the published ruling of the Administrative Court Freiburg of 18.7.2018, 1 K 1083/17 brought some more clarity here.
That case involved an individual of means who wished to settle in Germany to live off his own funds. These included a large land plot located in a residential area, which was rented out to a hotel with a restaurant for 3,500 Euros per month. It was disputed whether the income, which was lease income and not interest income, could be qualified as assets that were suitable to secure the family’s livelihood in the long term.
According to the judgment, the assets required include any such income to secure the relevant person’s livelihood in the long term without needing additional assistance from the State. However, generally, this will only include assets that are expected to generate a regular interest income.