German Investor Residency: Sometimes Expensive, Sometimes Free Now - By Stefan Meyer
No, that’s not a clickbait title. Some people are paying a fortune to get a German residence permit, whereas others are truly getting it for free.
The thing that separates those people is the investment option they use. In fact,
choosing the right option can be the difference between a dream investment and an expensive nightmare.
German Residency by Investment Options
If you want to get a German residence permit by investment, you have two main
options. You can either start a business of your own or invest in an established
company with a proven track record. Choosing between these two options is
where most people mess up. So let’s explore each in detail below:
Establishing Your Own Business
This option looks great on paper. You get to start your own business in any of the fine cities of Germany. You get to experience the local business world and all its quirks. You get a firsthand experience of German punctuality and honesty. Unfortunately, that’s where the good part ends. Why? Take a look at the following requirements:
* You must prove to have a minimum cash flow of 200.000€.
* You must have a proper business plan created by a professional.
* Lastly, you must get your business
plan approved by the German Chamber of Commerce. Now, it is possible to meet all those requirements, but it takes a lot of time and effort. Based on our experience,
this option usually takes 3 to 5 months from application to approval. That’s
longer than any other option. Even if you can meet those requirements and wait for all that time, there’s still one big problem. Starting your own business is quite risky. Pick any country in the world and the statistics will show you that most new businesses fail badly.
As you probably lack the local knowledge and connections, it’s going to be
extremely difficult for you to establish a successful and profitable local business.
Keeping all those points in mind, you can see why we advise clients against
this option. It’s not worth the time, money, and the exponential risk.
Investing in an Established Company
Starting your own business is not the only option. Instead, you can and you should invest in an established German company.
Why? That’s because there are some German companies with a proven record of generating 25-35% yield per year. These are no flukes either, as some of these companies have been in business for 10 years or even more. As a shareholder, you can expect a minimum of 15% yield per year from these companies.
Of course, finding these companies is tough, but it’s not impossible. We’ll talk about how you can invest in these companies in a minute, but first let’s take a look at the two different options available within this category:
How Some People Are Able to Get German Residency for Practically Free
As we discussed before, there are a few German companies that have a track record of generating at 25-35% yield over the last 10 years or more. So every Euro you invest in those companies will produce profits for you.
You can also get a loan using your employment contract (up to 50k Euro) and your shares in that company (up to 500k Euro loan). Better yet, there is a special scheme available where you can get a loan with only 1.2% yearly interest payment and no installments for the first two years.
So by investing in those companies and then taking out a special loan and investing that capital elsewhere — people are able to save both the original profits from the investment company and theprofits they make from the loan. In the end, not only are some investors able to recover all their expenses, but a few even make a good profit by selling their shares, eventually.
Now the question remains, how can you find those proven companies and get that special loan? That’s where we can help you. We are a close-knitted team of passionate individuals located between Downtown and the heart of the Frankfurt Bank District near the Chinese Embassy.
With our experience from helping hundreds of investors relocate to Germany, we’re in a unique position where we know exactly:
How some people are able to get German Residency for practically free here’s how we can help you
- Which cities and authorities are easy to deal with.
- Which companies are profitable and have a track record of success.
- Which scheme works best for each client’s specific profile to help them secure 1.2% interest loans among other benefits.
Our Approach is What Makes Us Tick
Beyond our specialized knowledge and experience, our clients routinely complement us on our personal and authentic approach.
For instance, we offer the whole relocation process and consultancy. That’s the package services you need for everything, including:
- Consultation at every step of the process.
- Handling all documents including applications for visa and residence permit
- Booking of temporary accommodation
- Home search
- Kindergarten and school Search
- Health insurance
- Other insurances
- Tax class change
- Child support (receive 204€ p.m. per child)
- Bank account and credit card opening
- Tax declaration
- Driver’s license conversion
- And so much more.
Should you have special requests or special needs, we customize all our solutions for you and your loved ones. So before taking any step, a personal consultant will discuss everything with you and only move forward upon your approval. You wish it, your personal
consultant will make it happen.
Let’s Explore Your Best Options Together
As we discussed earlier, we generally don’t recommend establishing a business in Germany from scratch if are looking for residency unless you have already customers and further. Investing in proven companies is far easier, profitable and the most secure.
The word “generally” is the key here, as for some people, setting up a new business turns out to be the better option. For instance, online businesses that sell on marketplaces like Amazon or eBay could be better served by setting up a shop or company presence in Germany. That’s why we also offer virtual services such as company formations, virtual office, product sales texting, SEO and other marketing, mailing address with mail and parcel acceptance and forwarding services to any location.
We hope that shows you the power of a personalized approach. Your specific needs are unique. Just like that, your plan of action needs to be unique and specific to best serve your needs.
a. Shareholder with Employment
Here are the highlights for the shareholder with employment option:
- You need to invest a minimum of 350.000€.
- You get an employment contract with a fixed salary from 48.000€. With the right planning, you could even prevent this commitment from affecting your day to day life.
- Quick approval usually within 1 month.
As you can see, this is the best option by far as it’s simple, fast and eective.
b. Shareholder Investment
Here are the highlights for the shareholder investment option:
- You need to invest from 50.000€.
- Each month you get a payment from the company based on the profit yield usually 10%p.a.
- As there is no employment with this option, you have to prove the ability to support yourself financially for at least one year.
The shareholder investment option can take 2-4 months from application to approval. With all the investment options covered, let’s get to the part you’ve been waiting for.
further information : firstname.lastname@example.org
Author : Stefan Meyer / Life Matters Advisory Ltd., Frankfurt