Freelancing at 45+: The hurdle of retirement planning for the freelance visa

Foreign freelancers and self-employed individuals seeking to establish themselves in Germany often face complex bureaucratic requirements. A particularly significant hurdle for freelancers and the self-employed is Section 21 Paragraph 3 of the German Residence Act (AufenthG ). This stipulates that foreigners who are 45 years of age or older at the time of application should only receive a residence permit if they have adequate retirement provisions . The legislator aims to prevent self-employed individuals from relying on state social welfare benefits in old age.

What is considered "appropriate"?

There are relatively clear guidelines for the "adequacy" of retirement provisions. Personal assets, pension entitlements, or business assets can serve as proof. Specifically, it is expected that upon reaching the age of 67, one should either have a monthly pension of at least €1,565.03 (for at least 12 years) or be able to demonstrate assets of at least €225,364.00 . However, there are exceptions to every rule: The law is formulated as a "should" provision, which allows for discretion . Furthermore, there are specific legal exemptions that many applicants are unaware of.

Exceptions for certain nationals based on international agreements

Although the Residence Act generally sets strict requirements, nationals of certain countries enjoy privileges. This is due to international agreements or special administrative regulations that facilitate market access. According to these international legal provisions, nationals of the following countries are exempt from the requirement to prove adequate retirement provisions when applying for a freelance or self-employed visa at the age of 45:

• USA

• Japan

• Dominican Republic

• Indonesia

• Philippines

• Sri Lanka

• Türkiye

Furthermore, in individual cases – for example, where there is a special public interest in the activity ( § 21 para. 2a of the German Residence Act ) – proof of adequate retirement provision may be waived. However, such a deviation from the principle of adequate retirement provision is extremely rare in practice and must be very well justified. Important: These exemptions primarily apply to the granting of temporary residence permits. Those who later seek permanent residence permits must generally provide proof of adequate retirement provision, regardless of their nationality.

Exceptions for Turkish nationals

A particularly well-founded legal exception exists for Turkish nationals . Here, the basis is not merely administrative practice, but the higher-ranking European association law . The 1963 Association Agreement between the EEC and Turkey, as well as the associated 1970 Additional Protocol, contain a so-called standstill clause . This prohibits Germany from introducing new restrictions on the freedom of establishment for Turkish nationals after the Protocol's entry into force.

The crucial point: The requirement for proof of old-age provision for those over 45 was only introduced with the Immigration Act in 2005. Since this represents an additional hurdle to entry, it cannot be applied automatically to Turkish self-employed individuals who fall under the protection of association law. In legal practice, this means one thing above all: European association law takes clear precedence over ordinary national law, such as Section 21 of the Residence Act. Because the authorities must exercise their discretion in accordance with association law, this generally leads to a waiver of the otherwise standard proof of old-age provision for Turkish citizens over 45. While proof of old-age provision is a tough and often difficult-to-meet requirement for many other non-EU citizens, it must not be an insurmountable barrier to market access in Germany for Turkish freelancers due to this legal obligation.

Conclusion regarding the application for a freelance visa for those over 45 years of age

The mandatory old-age provision requirement under Section 21 Paragraph 3 of the German Residence Act (AufenthG) presents a significant bureaucratic and financial hurdle for freelancers aged 45 and over, preventing them from becoming dependent on state social benefits in old age. While the required proof of assets exceeding €225,000 poses a challenge for many applicants, international agreements, and in particular EU association law, offer important privileges and exemptions for Turkish nationals. Nevertheless, old-age provision remains a central issue in long-term residency planning, as comprehensive documentation is usually required for obtaining a permanent residence permit.