Germany · Permanent Residence
Germany Permanent Residence for Founders
Successful founders have one of the shortest paths to permanent residence in Germany. A settlement permit can follow three years of self-employment, while freelancers and others usually wait five years under the general rules.
- Startup route
- Residence permit for self-employment (section 21)
- Minimum capital
- No fixed minimum; financing must be secured
- Permanent residence
- 3 years (section 21 settlement permit)
- Citizenship
- 5 years (3-year route repealed Oct 2025)
Settlement permit for the self-employed (section 21(4) Residence Act)
After three years of self-employment, a founder may receive a settlement permit (Niederlassungserlaubnis) without meeting the usual five-year conditions of section 9. The founder must have carried out the planned activity successfully, and the business must generate enough income to support the founder and any dependants. Berlin's foreigners authority, as one example, also checks health insurance, old-age provision and criminal records, and asks for an integration course certificate or its final test results. The permit must have been issued under section 21(1) or 21(2a), because freelancers under section 21(5) are excluded. The fee is EUR 124.
- Earliest
- After 3 years of self-employment
- Government fee
- EUR 124
- Validity
- Unlimited
- Income test
- Business income must support the household
- Excluded
- Freelance permits under section 21(5)
Requirements
- A section 21(1) or 21(2a) permit and three years of self-employment.
- Successful implementation of the planned business activity.
- Income from the business itself that covers the founder and family members.
- Adequate health insurance and old-age provision.
- No relevant criminal convictions.
How to apply
- Gather three years of tax assessments, accounts and proof of business income.
- Book an appointment with the local foreigners authority and file the application.
- Pay the EUR 124 fee and collect the permit once approved.
Settlement permit (section 9 Residence Act)
The general settlement permit is the route for freelancers and for founders who do not meet the business-success test. It requires five years of holding a residence permit, at least 60 months of mandatory or voluntary contributions to the statutory pension insurance or comparable provision, sufficient German, basic knowledge of the legal and social order, a secured livelihood and adequate housing. Completing an integration course generally serves as proof of both the language and the civic knowledge. The fee in most cases is EUR 113.
- Qualifying period
- 5 years holding a residence permit
- Pension
- 60 months of contributions or comparable provision
- Language
- Sufficient German; integration course accepted
- Government fee
- EUR 113
- Validity
- Unlimited
Requirements
- Five years of holding a residence permit.
- At least 60 months of pension contributions or equivalent provision.
- Sufficient German and basic knowledge of the legal and social order.
- A secured livelihood and adequate living space for the household.
How to apply
- Check pension records, language certificates and integration course results.
- Apply to the foreigners authority before the current permit ends.
- Collect the settlement permit after approval.
EU long-term residence permit (Daueraufenthalt-EU, section 9a)
The EU long-term residence permit is an unlimited status that German law largely treats like a settlement permit. It requires five years of holding a residence permit in Germany, stable and regular income for the applicant and dependants, sufficient German, basic knowledge of the legal and social order and adequate housing. Founders who do not qualify for the three-year route can compare it with the section 9 settlement permit, since the qualifying period is the same and both are unlimited.
- Qualifying period
- 5 years holding a residence permit
- Income
- Stable and regular income for the household
- Language
- Sufficient German
- Government fee
- Varies; confirm with the foreigners authority
- Validity
- Unlimited
Requirements
- Five years of residence in Germany on a residence permit.
- Fixed and regular income that supports the applicant and dependants.
- Sufficient German and basic knowledge of living conditions in Germany.
- Adequate housing for the household.
How to apply
- Compare the permit with the settlement permit before choosing.
- Assemble income, housing and language evidence.
- File the application with the local foreigners authority.
Three years or five: which settlement route applies
The three-year path exists only for company founders. Berlin's guidance states that a permit issued for entrepreneurial activity under section 21(1) or 21(2a) qualifies, while a freelance permit under section 21(5) leads to a settlement permit at the earliest after five years. The three-year rule is also discretionary: the business must have succeeded and be expected to keep developing, and its own income must cover the household without relying on family members or capital income.
Old-age provision is a recurring checkpoint. Berlin publishes concrete reference figures: from 1 July 2025, adequate provision at age 67 means a monthly pension of EUR 1,612.53 for at least 12 years, or assets of EUR 232,204. These figures come from Berlin's service page, so founders living elsewhere should confirm the values used by their own foreigners authority before filing an application.
Questions and answers
Can a founder get permanent residence in Germany after three years?
Yes, if the business has been carried out successfully and its income supports the founder and dependants. Section 21(4) of the Residence Act allows a settlement permit after three years of self-employment, departing from the five-year general rule. The decision is discretionary and made by the local foreigners authority.
Do freelancers qualify for the three-year settlement permit?
No. Section 21(5), which governs freelance permits, excludes the three-year rule. Freelancers apply for a settlement permit under the general conditions, which include five years with a residence permit and 60 months of pension contributions or comparable provision, along with language and integration requirements.
What does a German settlement permit cost?
The Residence Ordinance sets EUR 124 for the self-employed settlement permit under section 21(4), EUR 147 for highly qualified people under section 18c(3) and EUR 113 in all other cases. Berlin collects the self-employed fee in two parts of EUR 62, on application and on grant.
Is German language proof needed for the three-year route?
The section 21(4) test centers on business success and income. Berlin's foreigners authority nevertheless lists an integration course certificate, or the results of the course's final tests, among its requirements, so founders should expect to document German skills and civic knowledge when they apply.
Official sources
- Aufenthaltsgesetz § 21 Selbständige Tätigkeitwww.gesetze-im-internet.de
- Aufenthaltsgesetz § 9 Niederlassungserlaubniswww.gesetze-im-internet.de
- Aufenthaltsgesetz § 9a Erlaubnis zum Daueraufenthalt-EUwww.gesetze-im-internet.de
- Permanent settlement permit for self-employed persons - Service Berlinservice.berlin.de
- Aufenthaltsverordnung § 44 (settlement permit fees)www.gesetze-im-internet.de
Reviewed October 2026. Immigration rules change often. Confirm the current requirements with the official authority or a licensed adviser before applying.
Your path in Germany.
Startup visa
National D visa for self-employment from a German mission abroad
02Temporary residence
Section 21 permit for up to 3 years, extendable if the business works
03Permanent residence
Settlement permit after 3 years if business income covers the household
04Citizenship
5 years of lawful residence, B1 German and a test; dual citizenship allowed