German Entrepreneur Visa Requirements (2025 Guide)

Starting a business in Germany as a non-EU national requires meeting entrepreneur visa requirements, including financing and economic benefit. This blog post outlines the legal expectations for non-EU nationals who intend to obtain a German Entrepreneur Visa and wish to reside in Germany.

Germany actively encourages innovative entrepreneurs and international investors. The German Entrepreneur Visa – legally based on Section 21 of the Residence Act (AufenthG) – offers a path to residence for non-EU founders who can demonstrate that their venture benefits the German economy. This guide explains the general requirements, financing options, business plan essentials, common pitfalls, and how you can position your project for approval.

What is the German Entrepreneur Visa?

The Entrepreneur Visa, also referred to as the self-employment residence permit, is designed for founders, investors, and business owners from outside the EU. It allows applicants to establish or manage a business in Germany, provided that the business demonstrates economic viability and a benefit to the host region.

Key points:

• Based on Section 21 Residence Act (AufenthG).
• Target group: founders, managing directors, investors.
• Initially granted for up to three years, renewable and convertible to permanent residence if conditions are met.

Unlike the EU Blue Card, which focuses on employment, the Entrepreneur Visa rewards entrepreneurial initiative and economic contribution.

General requirements under Section 21 Residence Act

Authorities assess each application holistically. The law does not prescribe fixed thresholds but defines three decisive criteria:

1. Economic interest or regional need: The business must address a market demand or regional development goal. Start-ups in tech, renewable energy, or healthcare are viewed positively.
2. Positive effects on the German economy: Expected job creation, innovation, or contribution to competitiveness are key.
3. Secured financing: Proof that funds are available to launch and sustain the business.

Applications are reviewed in coordination with the local immigration authority, the trade office, and often the local Chamber of Commerce and Industry (IHK).

Investment amounts and job creation

Earlier practice required €250,000 in capital and the creation of five jobs. These hard thresholds were abolished. Today, authorities look at:

• The scale of investment relative to the industry.
• The quality of the business plan.
• Number and type of jobs created, especially for German or EU citizens.

This means a smaller but innovative start-up can qualify, while a larger but poorly structured plan may fail.

Capital and financing options

Applicants must prove that they can finance both the business and their personal living expenses in Germany.

• Personal equity: Savings, investments, or company assets.
• Confirmed loans: Bank loans, venture capital, or angel investors.
• State-backed loans: For example, through KfW or regional funding programs.

Living costs must also be covered. As of 2025, the reference value is approx. €1,100–1,200 per month per adult, plus health insurance. For families, this increases accordingly.

Loans and state support for start-ups

Financing with loans is acceptable as long as commitments are credible and documented. In fact, German immigration authorities often appreciate bank involvement because it demonstrates an independent review of the business plan.

State programs (KfW loans, regional start-up grants, incubators) can strengthen an application. These supports may reduce the need for large personal deposits but require well-prepared documentation.

Business plan as the key success factor

The business plan is the cornerstone of every entrepreneur visa application. Authorities will not only look at the numbers but also at the story behind the venture. A convincing plan should include:

• Executive summary – concise explanation of your idea, target market, and unique selling proposition.
• Market analysis – size of the target market, competition, demand trends.
• Business model – how the company will operate and generate revenue.
• Financial plan – start-up costs, operating costs, projected turnover, and profitability timeline.
• Economic benefit to Germany – potential job creation, knowledge transfer, or contribution to innovation.
• Proof of financing – bank confirmations, investor commitments, or own funds.

In practice, authorities often forward the business plan to the local Chamber of Commerce and Industry (IHK) for assessment. A positive IHK opinion can significantly strengthen the application.

Family members and residence rights

Spouses and minor children can join the main applicant under the family reunification provisions. Key points:

• The entrepreneur must prove sufficient income and housing for the whole family.
• Family members receive residence permits linked to the main applicant.
• Spouses typically enjoy free access to the labor market.
• Children may attend school or university.

This makes the Entrepreneur Visa attractive not only for business founders but also for families planning long-term relocation.

Common pitfalls applicants face

Despite promising ideas, many applications fail due to recurring mistakes:

• Underestimating capital needs: Applicants often calculate too optimistically, leaving no buffer for unexpected costs.
• Weak business plans: Generic, copy-pasted, or vague concepts without numbers rarely convince authorities.
• Ignoring regional needs: A restaurant in a saturated area may struggle, while a tech start-up in a growth region may be welcomed.
• Lack of documentation: Missing proof of financing, incomplete CVs, or insufficient insurance documentation delay or derail the process.
• Assuming automatic approval: The visa is discretionary – convincing the local authority is essential.

Next Steps

The German Entrepreneur Visa is a flexible yet demanding path to residence.

Success depends on a solid business plan, credible financing, and evidence of economic benefit. With the right preparation, applicants can secure residence for themselves and their families while building a long-term business in one of Europe’s strongest economies.

Immigration law for entrepreneurs is complex, and every authority evaluates differently. At Lexidian, we combine legal expertise with practical know-how in corporate immigration:

• Assessment of eligibility under Section 21 AufenthG.
• Review and optimization of business plans to meet authority expectations.
• Guidance on financing strategies, including equity and loans.
• Coordination with local authorities and IHK.
• Support for family reunification applications.

If you need personal guidance by a German attorney, feel free to contact my law office or directly book a Consultation.