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Visa for self-employed persons, Section 21 Residence Act
Lawyer's statement on visas for self-employed people in Germany (entrepreneur visas and start-up visas).
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the requirements of the respective visas for self-employed persons
the difference between the Entrepreneur Visa and the Start-Up Visa
how much you have to invest for an investor visa
the prerequisite for a residence permit for self-employed persons
1. Visa for self-employment in Germany
2. Entrepreneur Visa Germany
3. Start-Up Visa
3.1 Necessary steps for setting up a business for foreigners
3.2 Difference between Start-Up Visa and Entrepreneur Visa
4. Investor visa
4.1 What is the investor visa?
4.2 Requirements for the investor visa in Germany
4.3 Visa for the purchase of real estate
5. Permanent settlement permit for self-employed persons in Germany
5.1 Requirements for permanent residence for self-employed persons
5.2 Successful realization of self-employment
5.3 Pension provision settlement permit
6. FAQ
7. Conclusion
1. Visa for self-employment in Germany
Germany is an attractive location for entrepreneurs and self-employed people from all over the world. With a flourishing economy, strong SMEs, and innovative strength, the country attracts many talented individuals. In particular, the demand for innovative business models and investments in technology-driven industries in major cities like Berlin offers significant opportunities (see, for example, Berlin Partner's activities on this topic ). According to a recent OECD study, Germany is one of the countries with the highest immigration rates of qualified professionals and entrepreneurs.
Germany offers a wide range of opportunities for self-employed individuals who wish to live and work here with a visa. Although there are no legally defined subcategories for these visas, they can be divided based on the target group and requirements. These categories are primarily derived from legal practice and are intended to provide guidance for visa applications. In principle, the following visa options are available for self-employed individuals in Germany ( Section 21 of the Residence Act ):
Entrepreneur Visa: The Entrepreneur Visa is specifically designed for entrepreneurs who want to bring innovative business models to Germany. Approval often depends on how the company creates jobs and contributes to the economy.
Start-up visa: This visa is aimed at founders in the tech and innovation sectors. Cities like Berlin, Munich, and Hamburg actively support startups with international operations. A convincing business plan and often support from an incubator or accelerator are advantageous.
Investment visa: The investment visa is aimed at foreign investors who wish to invest large amounts of capital in Germany and create jobs. Key criteria include solid business plans, a high investment volume, and the economic benefit to the region.
Freelancer Visa: The Freelancer Visa is ideal for freelancers such as creative professionals, consultants, or IT experts. This type of visa has specific requirements, which we explain in detail in our VISAGUARD article for freelancers .
This article describes in more detail the requirements for individual visas for self-employed persons according to Section 21 of the Residence Act.
2. Entrepreneur Visa Germany
The Entrepreneur Visa is aimed at businesspeople who want to start or take over a company in Germany. The focus is on the economic added value these individuals create through their venture, for example:
Establishment of a company with the aim of creating jobs.
Expansion of existing structures , e.g. through new branches or business areas.
Capital-intensive projects that strengthen the economy in Germany.
The legal form plays a minor role here. However, many entrepreneurs opt for a GmbH or UG (limited liability company) because this structure conveys seriousness and facilitates entry into the German market.
To obtain an entrepreneur visa, Germany must demonstrate a commercial interest in the activity. However, contrary to popular belief, it is not necessary for the company to create jobs . Nevertheless, job creation is a very positive factor for an entrepreneur visa application. Another requirement for the entrepreneur visa is that financing is secured (e.g., through equity or bank loan commitments).
The documents required for the entrepreneur visa vary depending on the embassy and immigration office. In most cases, however, at least a business plan , a financing plan , a business registration or a commercial register extract , and proof of qualifications (e.g., diplomas) must be submitted. Further information on the required documents can be found on the websites of the Berlin State Office for Immigration and the Berlin Chamber of Industry and Commerce . If you have any difficulties applying for the entrepreneur visa, one of our cooperating VISAGUARD lawyers will be happy to assist you .
3. Start-Up Visa
Many foreigners are interested in the Start-Up Visa because Germany is one of the leading countries for innovation and technology in Europe. This is especially true for Berlin as a business location and the digital economy in Berlin . With a stable economic system, a strong start-up scene (see, for example, the Start-Up Incubator Berlin ), and attractive funding programs (see, for example, the Berlin Innovation Funding Program ), the location offers optimal conditions for founders .
3.1 Necessary steps for setting up a business for foreigners
However, founders from abroad face the challenge of overcoming legal and bureaucratic hurdles when establishing a startup. With the right startup visa and a clear plan, however, this can be overcome. The following steps are necessary to apply for the appropriate startup visa:
1. Establish a company: Choose a legal form (e.g., GmbH or UG) and have your articles of association certified by a notary.
2. Entry in the commercial register: Corporations such as GmbHs and UGs must be registered in the commercial register .
3. Business registration: For many activities you must register a business with the responsible municipality (see, for example, business registration in Berlin ).
4. Entry in the Transparency Register: Ensure that the beneficial owners of your company are registered in the Transparency Register .
5. Information for the tax office: Apply for a tax number and register for VAT (see tax offices/tax office search in Berlin ).
6. Apply for a residence permit for start-up founders: Submit a business plan, the commercial register extract and proof of financing for your project to the immigration office (in Berlin, for example, this can be done via the LEA contact form ).
3.2 Difference between Start-Up Visa and Entrepreneur Visa
Compared to the Entrepreneur Visa, applying for a Start-Up Visa is significantly easier, as fewer documents are required. Start-ups founded by foreign nationals who have studied at a German university or worked as academics in Germany are particularly privileged (Section 21 (2a) of the Residence Act). In these cases, annual revenue of just €24,000 may be sufficient (in Berlin) to successfully apply for a Start-Up Visa.
If you have any questions about the start-up visa, a VISAGUARD-certified lawyer will be happy to assist you.
4. Investor visa
Germany is a globally recognized investment location. The real estate sector and future-oriented industries such as technology and renewable energies in particular attract international investors. But what options do investors have for obtaining a residence permit in Germany?
4.1 What is the investor visa?
The investor visa is aimed at individuals who wish to make an economic contribution to Germany through their investments and thus secure their residency in Germany. Although the Residence Act (AufenthG) does not explicitly define the term, the investor visa falls into the category of self-employment ( Section 21 AufenthG ).
4.2 Requirements for the investor visa in Germany
To obtain an investor visa in Germany, investors must create positive economic effects through their project, for example:
Job creation.
Promoting innovative technologies.
Investments in local infrastructure projects.
To implement these projects, the primary objective is often to establish a company or acquire large assets (e.g., real estate). The requirements for an investor visa depend heavily on the size and type of investment. In general administrative practice, an amount of €250,000 is often considered a guideline. However, this amount can vary depending on the region and project.
4.3 Visa for the purchase of real estate
Purchasing a house alone does not generally qualify for an investor visa. However, if the property purchase is associated with a larger investment, this can be considered when applying for a visa. Purchasing a house alone does not justify a residence permit unless it is part of a larger investment with added economic value. One of VISAGUARD's independent lawyers would be happy to advise you on this matter .
5. Permanent settlement permit for self-employed persons in Germany
The settlement permit is a permanent residence permit that offers long-term prospects for self-employed persons in Germany. The settlement permit for self-employed persons is regulated in Section 21, Paragraph 4, Sentence 2 of the Residence Act (AufenthG) . It is a significant advantage, especially for entrepreneurs who have already successfully established themselves in the market , as it means fewer regulatory requirements and greater planning security. However, the requirements, particularly regarding securing a livelihood, are demanding. Furthermore, misunderstandings often arise regarding certain aspects of the application process for a settlement permit for self-employed persons. The most common pitfalls are explained below.
5.1 Requirements for permanent residence permit
The formal requirement for granting a permanent residence permit to self-employed persons is that they have held a residence permit for self-employed persons for three years . It doesn't matter which residence permit for self-employed persons is used, as long as the legal basis is Section 21 of the Residence Act. Unfortunately, this often leads to serious misunderstandings. The option to apply for a settlement permit after three years does not apply to freelancers . While freelancers are also regulated in Section 21 of the Residence Act, the regulations for freelancers systematically follow the regulations governing settlement permits (namely Section 21 (5) of the Residence Act). The prevailing opinion therefore concludes that freelancers can only apply for a settlement permit after five years ( Sections 9 and 9a of the Residence Act ).
5.2 Successful realization of self-employment
To apply for a permanent residence permit for self-employed persons, you must still have " successfully realized " your self-employed activity (Section 21 (4) Sentence 2 of the Residence Act). This is the case if the activity, particularly due to its success and duration, promises further sustainable development of your business. In other words, another important requirement when applying for an unlimited residence permit for self-employed persons is that you are successful. You can demonstrate this, for example, through the creation of jobs, high sales, or economic expansion.
5.3 Pension provision with permanent residence permit for self-employed persons
Finally, you must prove that you can secure your livelihood in order to receive a permanent settlement permit for the self-employed. This is a particularly important point because the assessment criteria for a settlement permit are stricter than for other residence permits. You must prove that your income from self-employment is sufficient on a long-term basis to secure your livelihood and, if applicable, your family's livelihood. The authorities will assess whether your income will remain stable in the long term as part of a forecast . However, misunderstandings also arise time and again when it comes to securing your livelihood. The law does not state that retirement provisions (e.g. pension insurance) are necessary to secure your livelihood for self-employed people applying for a permanent residence permit. Nevertheless, most immigration authorities interpret sufficient retirement provisions as a necessary prerequisite for securing your livelihood. In practice, you must therefore provide evidence of retirement provisions if you apply for a settlement permit as a self-employed person. As a rule, you are considered to have sufficient retirement provision if your assets or pension entitlements total more than 250,000 euros .
Further information on applying for a permanent settlement permit for self-employed persons (e.g. necessary documents, application procedure, application (PDF)) can usually be found on the homepage of your immigration authority (see e.g. Applying for a settlement permit for self-employed persons in Berlin at the State Office for Immigration (LEA) ).
If you have any further questions, one of our independent VISAGUARD lawyers will be happy to assist you .
6. FAQ
What visa options are available for self-employed people in Germany?
Germany offers various visa options for self-employed individuals, regulated under Section 21 of the Residence Act: entrepreneur visas, start-up visas, investment visas, and freelancer visas. Each category has specific requirements and target groups.
What are the requirements for the Entrepreneur Visa?
For the Entrepreneur Visa, Germany must demonstrate a commercial interest in the business. A business plan, proof of financing, and often evidence of a positive economic contribution (e.g., job creation) are required.
How does the start-up visa differ from the entrepreneur visa?
The start-up visa is specifically tailored to technology-oriented and innovative founders. It generally requires less documentation and privileges foreign nationals who have studied or worked as scientists in Germany (Section 21 (2a) of the Residence Act).
What are the requirements for an investment visa?
The investment visa requires larger capital investments (often starting at 250,000 euros) that create economic added value, for example by creating jobs or promoting technologies.
Can buying a property justify an investment visa?
Simply purchasing a property is usually not enough to obtain an investment visa. The investment must be linked to economic added value, such as job creation.
What are the requirements for a permanent residence permit for self-employed persons?
Self-employed individuals can apply for a settlement permit after three years (Section 21 (4) Sentence 2 of the Residence Act) if their activity is successful and their livelihood is secure. Freelancers, on the other hand, must wait five years (Sections 9 and 9a of the Residence Act).
What does “successfully completed activity” mean for the settlement permit for self-employed persons?
Self-employment is considered successful if it is economically stable, jobs have been created, high turnover has been achieved and sustainable development can be expected.
Is retirement provision required for a permanent residence permit?
Pension provision is not explicitly required by law for the self-employed, but many immigration authorities require proof of pension provision, which is often valued at at least €250,000. The reason given for this (contrary to the wording of Section 21, Paragraph 4 of the Residence Act) is that pension provision is part of securing a livelihood. There are legitimate grounds for doubt about this interpretation of Section 21, Paragraph 4, Sentence 2 of the Residence Act, since Section 9 of the Residence Act explicitly distinguishes between securing a livelihood and pension insurance contributions.
What documents are required to apply for an entrepreneur visa?
Typically, a business plan, proof of financing, a business registration or commercial register extract, and proof of qualifications are required. The exact requirements may vary depending on the authority.
7. Conclusion
Section 21 of the Residence Act (AufenthG) offers foreign entrepreneurs and investors a variety of options for establishing a self-employed business. Whether as the founder of an innovative start-up, as a traditional entrepreneur with a commercially relevant business model, as an investor with larger capital investments, or as a freelancer – there are suitable visa categories for every target group. The decisive factors for the granting of a visa are always the economic added value for Germany, secured financing, and a viable business concept. Those wishing to remain in Germany long-term can, under certain conditions, obtain a permanent settlement permit . In addition to economic success and sustainable livelihood security, this often requires proof of sufficient retirement provisions – although this is not explicitly required by law. However, the practice of the immigration authorities shows that this proof is in fact expected.
Further Information
List of Sources (Paywall)
[1] NK-AuslR/Hocks, 3rd edition 2023, Residence Act § 21
[2] Dippe in Huber/Mantel, Residence Act, § 21, 4th edition 2025
[3] For the definition of “regional need” according to Section 21 AufenthG see VG Berlin judgment of 11 September 2020 – VG 31 K 462.19 V, BeckRS 2020, 26525 para. 21
[4] Regarding the granting of a secondary provision for the exercise of a self-employed activity as a change of purpose, see OVG Bln-Bbg decision of 28.1.2008 – 12 S 146.07
[5] For the distinction between self-employment and employment, see BSG, judgment of 29 August 2012 – B 12 KR 25/10 R
[6] Visa Handbook, Self-employment, as of June 2024
[7] Visa Handbook, Employment (Introduction), 73rd Supplement, as of May 2021