Germany

Passive Income

Residence Permit for Financially Independent Persons

⏱️ Duration
Typically issued for 1-3 years at the discretion of the local foreigners authority. Renewable if financial independence requirements continue to be met.
👪 Dependants
Yes
Spouses and minor children may apply for family reunification under Sections 27-36a of the Residence Act. Spouses generally must demonstrate basic German language skills at A1 level, with exemptions for certain nationalities (e.g. Australia, Canada, Israel, Japan, New Zealand, South Korea, the UK, and the US). The sponsor must show sufficient income for the entire family without recourse to public funds.
🛂 Citizenship Path
Yes — after 5 years
After 5 years holding a temporary residence permit, holders may apply for a permanent settlement permit (Niederlassungserlaubnis) under Section 9(2) AufenthG, provided they meet additional requirements: secured livelihood, 60 months of pension contributions (or equivalent insurance/pension entitlement), B1 German language proficiency, basic knowledge of Germany's legal and social order (via the 'Leben in Deutschland' test), and sufficient living space.

Germany's Residence Permit for Financially Independent Persons (Aufenthaltserlaubnis nach Section 7 Abs. 1 Satz 3 AufenthG) allows non-EU/EEA nationals with sufficient personal wealth or regular passive income to reside in Germany without engaging in gainful employment. Issued under Section 7(1) sentence 3 of the Residence Act (Aufenthaltsgesetz), this is a discretionary catch-all provision for residence purposes not otherwise covered by the Act. The administrative regulations identify wealthy foreigners wishing to live in Germany from their assets as a recognised example of a 'justified case' under this section.

The program targets retirees with pensions, individuals living from investment returns or rental income, and other persons of independent means. Germany does not have a dedicated retirement or passive income visa -- this general provision is the only pathway for financially independent persons. The permit is administered by the local foreigners authority (Ausländerbehörde) of the intended place of residence, and each application is assessed individually on a case-by-case basis.

Requirements
  • Livelihood permanently secured under Section 2(3) AufenthG from personal assets, investment returns, pension income, rental income, or other passive sources, without recourse to public funds
  • Income must be 'meaningfully above the social welfare existence minimum' (Regelbedarf), which remains at EUR 563/month for a single adult in 2026 (a second consecutive 'Nullrunde' with no increase versus 2025)
  • For asset-based applicants, capital must be substantial enough that the principal is not significantly depleted over the expected residence duration -- effectively, applicants must live from returns rather than consuming capital
  • Adequate health insurance: private insurance must meet statutory minimum standards, have an annual deductible of no more than EUR 5,000, and be underwritten by a BaFin-supervised insurer; for permits exceeding 12 months, the policy must be concluded for an indefinite period and include long-term care insurance (Pflegeversicherung)
  • Proof of adequate living space in Germany
  • No grounds for expulsion (clean criminal record)
  • Valid passport with at least 6 months remaining validity

Wealth derived solely from a spouse does not qualify -- the applicant must demonstrate personal financial independence.

Required Documents
  • Valid passport and completed visa application form (for embassy application)
  • Biometric passport photograph
  • Proof of secured livelihood: bank statements, investment portfolio statements, pension award letters, rental income documentation, or other evidence of regular passive income
  • Proof of adequate health insurance coverage (insurer certificate)
  • Proof of accommodation (rental contract, property deed, or landlord confirmation -- Wohnungsgeberbestätigung)
  • Motivation letter explaining the purpose and intended duration of residence
  • Criminal background check (Führungszeugnis or equivalent) from country of residence

Specific document requirements may vary by foreigners authority.

Duration & Renewal

The permit is typically issued for 1-3 years, with the exact duration determined at the discretion of the local foreigners authority based on the intended purpose (Section 7(2) AufenthG). Renewal follows the same rules and criteria as initial issuance under Section 8(1) AufenthG -- the applicant must demonstrate continued financial independence, valid health insurance, and accommodation. There is no automatic right to extension.

Fees: EUR 100 for the electronic residence title (eAT) issuance, EUR 93-96 for extension depending on duration.

Tax Implications

Holders with residence (Wohnsitz) or habitual abode (gewöhnlicher Aufenthalt) in Germany are subject to unlimited tax liability on worldwide income under Section 1(1) of the Einkommensteuergesetz. A habitual abode is generally established after 6 months of continuous presence. Foreign pension income and investment returns are taxable in Germany, subject to applicable double taxation agreements. Germany has over 90 bilateral tax treaties.

Application Process

Applicants from countries requiring a visa must first apply for a national visa (D-Visum) at the German embassy or consulate, then apply for the residence permit at the local foreigners authority after arrival. Citizens of Australia, Canada, Israel, Japan, New Zealand, South Korea, the United Kingdom, and the United States may enter visa-free and apply directly at the foreigners authority within 90 days.

All residents must register their address (Anmeldung) at the local residents' registration office within 14 days of arrival under Section 17(1) of the Federal Registration Act. Failure to register can result in fines of up to EUR 1,000. Biometric data (fingerprints and photograph) are collected as part of the electronic residence title (eAT) issuance process; the eAT card serves as both the residence permit and identification document.

The decision to grant the permit is discretionary (Ermessensentscheidung) -- there is no legal entitlement, and outcomes vary significantly between different foreigners authorities across Germany's 16 federal states.

Processing time: Several weeks to several months; no statutory processing deadline.

Fees: National visa EUR 75 (EUR 37.50 for minors under 18); electronic residence title EUR 100 for issuance, EUR 93-96 for extension.

Employment Restrictions

The permit under Section 7(1) sentence 3 does not authorise gainful employment (Erwerbstätigkeit). Employment may only be permitted separately under Section 4a(1) AufenthG with explicit approval from the foreigners authority.

Travel & Absence Rules

Under Section 51(1) no. 7 AufenthG, a residence permit expires automatically if the holder leaves Germany and does not re-enter within 6 months. A longer absence period can be approved in advance by the foreigners authority if the absence serves German interests (e.g., working for an internationally active German company or development aid). Holders aged 60 and over with 15 or more years of legal residence and a secured livelihood may apply for a certificate preventing automatic expiry under Section 51(2) AufenthG.

Residing in Germany without a valid residence title is a criminal offence under Section 95(1) AufenthG, punishable by up to one year of imprisonment or a fine.

Recent Changes

The Aufenthaltsgesetz has been amended seven times since the start of 2025, most recently by Article 2 of the Act of 2 April 2026 (BGBl. 2026 I Nr. 95) implementing EU Directive 2017/541 (terrorism). None of these amendments altered Section 7(1) sentence 3 or the secured-livelihood definition in Section 2(3), and the framework for permits to financially independent persons is therefore substantively unchanged. Germany's Skilled Immigration Act reforms of 2023-2024 focused on employment-based immigration and did not introduce a dedicated passive income or retirement visa category.

The Bürgergeld Regelbedarf -- the social welfare reference figure used to assess 'secured livelihood' -- is held at EUR 563/month for a single adult in 2026 (Nullrunde). The Federal Government announced in October 2025 a planned restructuring of the Bürgergeld into a new 'Grundsicherung' scheme, with legislation still pending as of May 2026.

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