Immigration to Germany

[NONEU]

I am a non-EU citizen and looking for a way to move to Berlin, Germany. If I have 300,000 euros in savings and buy 1 property to live in, 1 property to rent out for income and still have 100k in savings - then is it possible for me to live in Germany on the basis of self - support? In the meanwhile I would also look for a business to invest another 50k into... but I don't want the hassle of creating jobs etc. Berlin Property is very cheap and I like the city - I read somewhere that as long as you can prove self support in Germany and get private health insurance then it's no problem living there. How secure would this be? Of course the first thing I would do is learn german.

Thanks.

[JennySch]

Originally Posted by NONEU

I am a non-EU citizen and looking for a way to move to Berlin, Germany. If I have 300,000 euros in savings and buy 1 property to live in, 1 property to rent out for income and still have 100k in savings - then is it possible for me to live in Germany on the basis of self - support? In the meanwhile I would also look for a business to invest another 50k into... but I don't want the hassle of creating jobs etc. Berlin Property is very cheap and I like the city - I read somewhere that as long as you can prove self support in Germany and get private health insurance then it's no problem living there. How secure would this be? Of course the first thing I would do is learn german.

Thanks.

Think about it:
(a) to rent out a single property is really a risky business. There are many more rights for tenants as for the landlord. Even if they do not pay the rent, you need a lot of money for lawyers, etc., and more than one year to get your property back.
(b) There are several kinds of tax in Germany.
(c) health insurance is an obligation in Germany. Private health insurance is another expensive position, especially if you have a family.
(d) 50K for a business ? I think that it is not even enough for the start-up period. However, it depends to the type of business you plan to start.
Good luck

[ALKB]

Originally Posted by NONEU

I am a non-EU citizen and looking for a way to move to Berlin, Germany. If I have 300,000 euros in savings and buy 1 property to live in, 1 property to rent out for income and still have 100k in savings - then is it possible for me to live in Germany on the basis of self - support? In the meanwhile I would also look for a business to invest another 50k into... but I don't want the hassle of creating jobs etc. Berlin Property is very cheap and I like the city - I read somewhere that as long as you can prove self support in Germany and get private health insurance then it's no problem living there. How secure would this be? Of course the first thing I would do is learn german.

Thanks.

There is no 'investor visa' category in Germany, but as far as I heard, an investment of at least 500 000 Euro is required to acquire a residency permit based on investment.

While anybody can buy property in Germany, this does not give you the right to residency.

I´d contact your local German Embassy or, if you do not want to discuss your plans with them, yet, an immigration lawyer in Germany and spend 100 Euro or so in a consultation before investing huge amounts of money here.

[NONEU]

Well I did a lot of research in German investor visa laws - that 500k visa with a condition to create 5 jobs is an old visa - I don't think they follow it anymore to the point and are open to any investment in Germany as long as you come up with a good business plan. However I am not interested in moving under this category - I remember reading very clearly somewhere that if you establish residence in germany either by renting or buying a property and show enough money in you savings to prove that you can sustain yourself without being a burden on the German state then getting a residence permit for 1 year is no issue.

If I buy a property worth 100k - and live in it - I would have very little living expenses. I can buy 2 other studios in Berlin for 50-60k each and rent them out to Tourists as short let apartments - many people do this in Berlin and I am confident I can earn 1000-2000 euros a month doing this easily. Lastly I would still have over 100k in savings which is enough to prove self support. Health insurance, utilities, habitation tax - all inclusive will not be more than 300 euros a month and I have additional overseas income too.

I just want to know if I can be eligible for a resident permit if I move in and buy a property and show proof of being self sufficient ?? I am also aware of the rental laws in Germany and how they go in favour of the tenant rather than the landlord - that's why I would do short term rentals for studio apartments which do not fall under the rental laws, those strict laws only apply when a tenant has established residence in a rented property.

Thanks.

[James3214]

Noneu, to be honest, I think you might be struggling to support yourself here even with 300k to invest by buying property and renting it out. Don't forget the costs associated with buying a property (add on an extra 20%) living in it and even letting it (nebenkosten, etc) and paying tax on any rental income. Don't forget Germany is totally opposite to the UK when it comes to the rental/ownership percentage. I know one or two expats who have bought property in Germany and have regretted it and are now glad they have sold them. You also don't see the price fluctuations like you do elsewhere and if you do make a profit on it that will also be heavily taxed if you sell it within 10 years. My advice is don't do it. It will be a stressful way to lose 300k!

[ALKB]

Originally Posted by NONEU

Well I did a lot of research in German investor visa laws - that 500k visa with a condition to create 5 jobs is an old visa - I don't think they follow it anymore to the point and are open to any investment in Germany as long as you come up with a good business plan. However I am not interested in moving under this category - I remember reading very clearly somewhere that if you establish residence in germany either by renting or buying a property and show enough money in you savings to prove that you can sustain yourself without being a burden on the German state then getting a residence permit for 1 year is no issue.

If I buy a property worth 100k - and live in it - I would have very little living expenses. I can buy 2 other studios in Berlin for 50-60k each and rent them out to Tourists as short let apartments - many people do this in Berlin and I am confident I can earn 1000-2000 euros a month doing this easily. Lastly I would still have over 100k in savings which is enough to prove self support. Health insurance, utilities, habitation tax - all inclusive will not be more than 300 euros a month and I have additional overseas income too.

I just want to know if I can be eligible for a resident permit if I move in and buy a property and show proof of being self sufficient ?? I am also aware of the rental laws in Germany and how they go in favour of the tenant rather than the landlord - that's why I would do short term rentals for studio apartments which do not fall under the rental laws, those strict laws only apply when a tenant has established residence in a rented property.

Thanks.

In that case, why don´t you talk to the German Embassy about your plans? It would also be helpful to know where you saw the information you are referring to. In the end, only the German authorities can give you binding information on their current guidelines.

Keep in mind that the decision regarding residence permits are made by the Ausländerbehörde rather than the Embassies, so even if the Embassy says they don´t see an issue, the Ausländerbehörde still might.

Rent in Berlin have been going through the roof during the last three years or so, so buying in Berlin is probably not the worst idea. On the other hand, most people in Germany don´t buy property for a profit as such, I don´t think we even have a translation for 'property ladder'. If you decide to sell your property within two years of buying and you have not lived in it yourself, you might also be subject to 'speculation tax'.

I do know several Americans who rent out their Berlin apartments as holiday lets and they are doing well with that. You should investigate that the Berlin government is not particularly happy about the numerous holiday lets in residential areas and have been making noises about restricting this practice. Nothing concrete on that front so far, though.

If you are currently living in London, what is your immigration status in the UK? This could also be a big factor for the Ausländerbehörde in their decision-making.

[Rellie]

I'm in a similar situation to NONEU. My homework thus far has also come up with similar results. I have property here in Australia and plan on moving to Germany. The plan is to sell some property in order to buy a place to live and retain some here for income purposes. I looked at the idea of having rentals in Germany for income, but am coming to the conclusion retaining investment here is the favourable option. The only frustrating part to the whole thing is having to wait for a buyer at my end.

[James3214]

Originally Posted by Rellie

I'm in a similar situation to NONEU. My homework thus far has also come up with similar results. I have property here in Australia and plan on moving to Germany. The plan is to sell some property in order to buy a place to live and retain some here for income purposes. I looked at the idea of having rentals in Germany for income, but am coming to the conclusion retaining investment here is the favourable option. The only frustrating part to the whole thing is having to wait for a buyer at my end.

Rellie, I think you have probably come to the same conclusion, but personally, judging by the weak Euro and the strong Aus $ I would think it would be better that you keep your property in Oz, rent it out and then use the money to rent in Germany.

[Rellie]

thanks James... I've tossed that idea around a little too. being from Australia though and a long term property owner it's hard to make the brain think "rental".

I have time on my side, so no decision will be made in haste. I certainly don't wish to lose out financially.

thanks for your reply.