LEA updates VAB: Changes, especially regarding income calculation for the self-employed

The legal basis for the decision-making practices of the Berlin Immigration Authority ( LEA ) is its internal administrative regulations. There are some groundbreaking changes: The procedural guidelines for residence in Berlin (VAB) have been comprehensively revised . As a specialized law firm for visa law, we will guide you through these complex changes and show you what is now important for securing your livelihood and applying for residence permits .

Why are the changes to the VAB so important for expats and employers?

Administrative practices in Berlin have often been criticized in the past for being lengthy and opaque. With the current update of the VAB (Visitor and Expense Allowance Regulations) in 2026, the state of Berlin is attempting to adapt processes to the modernized Skilled Immigration Act and changing economic realities. For young professionals, international students, wealthy immigration authorities , and HR departments, this means new rules regarding documentation requirements. Anyone who does not precisely meet the new criteria for securing their livelihood according to Section 2 Paragraph 3 of the Residence Act risks significant delays or even a visa application being rejected. In our daily practice, we repeatedly see that seemingly minor details can determine the success of an application.

How will the income of self-employed people and freelancers be calculated from now on?

One of the most significant changes concerns the calculation of living expenses for the self-employed and freelancers. Previously, net income was calculated laboriously using the income tax tables for individuals or the splitting table for married couples . This practice is now obsolete. From now on, the clear guideline is: Gross income is the average income of the last six months as certified in the audit report. To determine net income, a radical simplification now applies: A flat 10% tax is deducted from gross income . For example, if you earn a certified gross income of €2,500 per month as a self-employed IT specialist from Canada, the authorities will deduct a flat €250, resulting in a net income of €2,250. For freelance expats and entrepreneurs in Berlin, this significantly speeds up the process, as complex tax calculations are no longer necessary.

What new requirements apply to the sustainability of employees' income?

Furthermore, there is an important clarification regarding the probationary period. If an employee is in a probationary employment relationship, the end of this probationary period must generally be awaited due to the simplified termination options. However, the new VAB (German Employment Contract Act) provides flexibility: It no longer automatically relies on the statutory fallback provision of Section 622 Paragraph 3 of the German Civil Code (BGB). If the employment relationship was only recently established and no probationary period or a very short one was agreed upon, the employment relationship must have existed for at least three months . As a law firm, we can now more effectively secure exceptions for you in cases of seamless employer changes within the same professional field, based on a comprehensive assessment of the employee's employment history. Good news for HR departments: Negative certificates from the job center or social welfare office can no longer be demanded by the authorities as a matter of course due to their lack of conclusiveness .

Who is authorized to prepare the mandatory audit report?

If you are applying for a residence permit for self-employment under Section 21 of the German Residence Act (AufenthG) , the authorities require a detailed audit report to assess your economic viability. The circle of authorized persons permitted to prepare this report has been clarified and slightly expanded. In addition to tax advisors and auditors , tax agents, lawyers, established European lawyers, and certified public accountants are now explicitly authorized.

Furthermore, the audit report must include the income statement (EÜR) or the corresponding business analyses, as well as the tax returns or tax assessments for the last three years . Fortunately, these strict requirements do not apply to freelancers who wish to apply for or extend a residence permit under Section 21 Paragraph 5 of the German Residence Act (AufenthG) – such as highly qualified foreign artists or language teachers; in these cases, other suitable evidence of economic success remains sufficient.

What total amounts must entrepreneurs and guarantors now prove?

For foreign investors and entrepreneurs, the financial hurdles have been significantly raised. While previously a required operating profit of €41,000 was assumed, the new guidelines for Section 21 of the Residence Act now require that the applicant's own business activities generate income of at least €46,000 per year after income tax . If the income falls below this threshold, the Chamber of Industry and Commerce (IHK) will be required to participate in the application process.

Creditworthiness criteria have also been tightened for declarations of commitment on behalf of family members or guests. Companies or high-net-worth individuals submitting such declarations must now prove that the business or the sponsor generates a minimum operating profit of €57,648.00 per year per sponsor after taxes . Furthermore, it is now completely irrelevant to the creditworthiness assessment by the authorities whether dependent spouses or minor children have their own income or declare that they are waiving their maintenance obligations – the full maintenance burden is always attributed to the sponsor.

How are health insurance contributions and assets taken into account in the proceedings?

A frequently underestimated pitfall in securing one's livelihood is health insurance . The revised VAB (German Social Security Code) makes it unequivocally clear: The actual monthly insurance premiums payable must always be deducted from the income required to secure one's livelihood . This applies even if the premiums for private or voluntary statutory health insurance appear above average. This mathematically reduces the available net income in the official calculation, which in the worst case can lead to rejection due to insufficient funds.

Regarding savings, there is a fundamental clarification: Pure assets such as savings accounts, checking accounts, stock portfolios, or real estate are not considered in the standard assessment of sufficient means of subsistence . Expats who live solely on their savings usually do not meet the criteria. An exception applies only if these assets generate regular, verifiable income (e.g., through rent or dividends) that is documented in the income tax assessment, or if they are specific residence permits for students (Sections 16a et seq. of the German Residence Act).

Conclusion

The revised procedural guidelines for residence in Berlin bring both advantages and disadvantages for the international community. While the flat-rate 10% tax credit for self-employed individuals and the waiver of job center certificates promise bureaucratic relief, the increased income limits of €46,000 for entrepreneurs and the strict crediting of health insurance contributions significantly tighten the requirements. For academic professionals from the USA , Canada, or Great Britain in particular , precise preparation of application documents is more important than ever. As an experienced law firm specializing in visa law, we support you in flawlessly fulfilling the new VAB criteria and ensuring your stay in Berlin is legally compliant.