Permanent residency for Germany

• Permanent – this residence permit gives an eligibility to stay in the country as much as you wish, also leave and return to Germany whenever you want. But it’s not the same as a German citizen. For the latter is needed another process,
• Standard Residence Permit – It is used for all purposes of immigration, for example completing training courses, for former Germans with the aim to return to Germany and those who go to Germany for political and humanitarian reasons. This type of residence permit is valid for some time and can be extended.

Citizenship for Germany:

• For applying for citizenship, it’s needed following requirements:
• To have a right to reside in Germany,
• To be lived in Germany legally for at least 8 years,
• To have the ability to speak Germany and know it B1 level,
• To be managed to pass the exam that checks the applicant’s knowledge of German and its constitution, the Rule of Law,
• Not have criminal records.

Work Permit for Germany

Germany has reported the lake of skilled workers and well-qualified people. They are continually seeking engineers, IT professionals, medical workers, and other qualified professionals. Foreign immigration authorities, in order to encourage such people, have relaxed the strict requirements to go to Germany and work.

Due to this, in Germany, one of the most demanded ways of immigration is through finding a job there. Forgetting the residence permit in order to work in Germany, the employer and employee must prove that:

• There was a lake of employees from Germany or the EU, so they couldn’t fill the position,
• Like any other German employee, the employee will have the same conditions in terms of salary and working environment,
• The employee for the job position meets all educational and work experience requirements,
• The company that hires the employee meets all requirements of the German country.

You will be able to work as an employee in Germany whilst your residence permit allows it. If your employer intends to continue your working relationship even after your work permit, you can apply for an extension. You can apply for a permanent residence as well.

It will be much more difficult to immigrate to Germany on a working basis if you are an unskilled worker.

EU Blue Card – It is given to non-EU citizen workers who are highly qualified and intend to work in Germany and apply those skills. High qualified means that the person in any given field has an undergraduate or graduate degree. To fit this Card, it is needed to have already found a job in Germany, and the annual salary must be min EUR50.800.

Being a holder of the EU Blue Card, you will be eligible to live in Germany for 4 years, with a possibility of renewing their residence permit into a permanent establishment. To fit for permanent settlement the person:

• Must show enough German proficiency,
• Meet certain financial requirements,
• Must have worked in Germany not less than 33 months in their spot of employment, which claims the skills gained with the highest qualifications.

Visa for Germany

• Tourist / Visitor VISA,
• Business VISA,
• Visas to Study in Germany,
• Job Seeker VISA,
• Employment VISA,
• Guest Scientist VISA,
• Training/Internship VISA.

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Taxes In Germany

Taxes in Germany are applied at a federal government level, the state level and at a municipal level. There are direct and indirect taxes in Germany that are applicable to natural persons and businesses.

An income tax is applied to German residents’ all earnings inside or outside the country. The tax is applied considering the 7 types of activities from which persons can acquire their income:

• Agriculture and forestry,
• Business operations,
• Self-employment work,
• Working as an employee in a company,
• Capital income,
• Letting property and other incomes.
• The rate of German income tax is from 0% to 45 %.

An income tax is also applied on non-residents if they acquire earnings on the German territory.

With almost 90 countries Germany has signed double taxation agreements to maintain the business environment and to boost mutual commercial relationships.

The Corporation Tax in Germany is in the amount of 15%. Counting the solidarity surcharge (5.5% of the corporation tax) and the trade tax (averaging at 14%), the tax on a corporation in Germany reaches nearly 30%. This tax is paid by companies, such as public and private limited enterprises, cooperatives, foundations, and associations.

The Trade Tax is charged on companies with business operations. This tax is levied by the local authorities or municipalities. The rate of the trade tax is 14%. However, there are various trade taxes, created in pursuance of the region. For instance, the trade tax is possessed at a rate of 14% to 16%, but it can also be possessed at a rate of 7% of companies are registered in economically challenged regions. In larger cities, it can also be possessed at a rate of 17%. For instance, in Munich, the rate of the trade tax is 17.1%. In smaller towns, the rate is 12%.

In Germany, the Value Added Tax (VAT) is set at 19%. All services and products are subject to VAT. There are some exceptions that are taxed with 7% VAT, for example, sales of certain foods, books, and magazines, flowers, and transportation. Medical and dental services are imposed with a reduced VAT rate.

There are some goods and services that are exempt from VAT, such as:

• Export deliveries,
• Intra-Community supply of goods,
• Services rendered by certain professional groups,
• Financial services (e.g. loans),
• Cultural services provided to the public (e.g. public theatres, museums),
• Services provided by certain institutions which offer general education or vocational training,
• Services provided voluntarily.

In Germany VAT is paid by the end-user, who purchases some goods and services. Afterward, the companies will earn a certain sum from the appropriate purchases which must be collected and send to the German local tax authorities.

In Germany VAT can be transferred in one of the following ways:

• Yearly basis,
• Quarterly basis,
• Monthly basis.

The Real Property Tax is applied by the municipalities. It varies depending on the local parliament and on the type of sold property. There is also a Real Estate Property Transfer Tax. In the case of this tax, the seller must pay a tax after selling the appropriate property.

In Germany, the real estate tax is taxed on account of 2 types of taxes, applicable to property that is used in forestry and agriculture, and another tax, that is imposed to construction sites which will become real estate properties or buildings.

The value of the tax is defined in pursuance of the rules and regulations that are established by the German Assessment Code.

The value of the tax is imposed from 0.28% to 1%. In pursuance of the location of the respective property and to its destination the tax may vary.

Since 2011, flights of passengers’ extending from Germany are subject to the Aviation Tax, the amount being created appending of the distance.

In 2016, the German authorities applied 3 basic levels of taxation, appending of the region where the flight was scheduled.

So, domestic flights, flights within the EU space, EU candidate countries, flights in the European Free Trade Association region, are taxed with EUR 7.38.

Flights to other countries not mentioned above, which are located at a distance of max 6.000 km away from Germany are taxed with EUR 23.05.

Business Establishment in Germany

Intending to start a business in Germany, you must know a few things to get started. There are various options for your business in Germany:

Sole trader – It is mainly intended for individuals working alone. As a single entity you must pay and personal and business tax together and also you hold full personal liability for your business activities.

Limited liability company (GmbH) – It means that the business is a separate entity to the individuals who form it. The liabilities of the business are kept scattered to the founders’ personal affairs.

Corporation (AG) – It is also limited liability, but needs more than 4 people to form it together. The surrounding rules of this business structure require a higher initial investment amount.

Partnership – This model can be a common partnership in which the partners are liable for all the responsibilities of the company or a limited liability model. It’s possible to have a partnership in which one partner is a general partner and another limit their liabilities to the amount they initially invest in the company. They can be individuals or companies that have already established their own right.

Subsidiary or branch of an existing company already registered elsewhere

In Germany, some forms of the corporate entity need a minimum investment from founders. A Limited liability company has a minimum initial stock amount of EUR25.000, while a corporation needs EUR50.000. In order to found a Limited liability company you need only one person, but to set up a corporation business you need not less than 5 people.

Legal obligations and responsibilities

Some trades and professions in Germany are covered by permits and licenses; this means, that for working in this field, you must have set qualifications. The type of businesses requiring permits are the following categories:

• Bookkeeping and financial services,
• Security,
• Travel, hotels, and restaurants,
• Employment agencies,
• Real estate agents.

If your business is in one of above mentioned, check out, that before starting to register your business, which permits you must present. If you employ others in your business you have to calculate and pay deposits for things such as unemployment insurance for them. Before you start to collect team members you need to make sure that as an employer you’re clear on the responsibilities you have.

Disclaimer for Immigration, Germany

We DO NOT provide consultancy for illegal immigration to Germany and do not promote illegal immigration for Germany, including, illegal residency for Germany or illegal work permit for Germany. Also, we do not entertain agents for illegal immigration for Germany.

Information provided on https://www.millionmakers.com regarding Germany cannot be taken as legal advice in any way, please consult immigration lawyer in Germany for expert legal advice for Germany.

We don’t support or provide any of our services to below mentioned Individuals or category(s) of business in Germany for immigration:

• Any device for Germany that might result in abuse of human rights in Germany or be utilized for torture in Germany.
• Trade in Germany, distribution in Germany and/or manufacturing of arms in Germany, weapons in Germany, ammunition in Germany, mercenary or contract soldiering in Germany.
• Espionage in Germany or technical surveillance in Germany or bugging instrumentation or equipment in Germany.
• Any illegal activities in Germany or criminal activities in Germany or company(s) or individual(s) that are black listed in Germany under The Law of Germany.
• Genetic material in Germany.
• Hazardous or Dangerous or risky biological, chemical or nuclear materials which also includes, instrumentation or machinery accustomed for disposing or manufacturing or handling of any such material(s).
• Trading in Germany, storage in Germany or transportation of Human or animal organ(s) in Germany, use of animals in Germany or abuse of animals in Germany for any scientific or product testing.
• Adoption agencies in Germany, as well as, surrogate parenting procedures in Germany or any kind of abuse of human rights in Germany.
• Non-secular cults in Germany and their charities.
• Pornography in Germany.
• Drug paraphernalia in Germany.
• Pyramid sales in Germany.