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GermanyInvestors & entrepreneursLast checked October 30, 2026

Residence permit for self-employment and freelancers

Section 21 · Official name: Aufenthaltserlaubnis zur selbständigen Tätigkeit (Section 21 Residence Act)

Germany can grant a residence permit to people who want to run their own business if there is an economic interest or regional need, the activity is expected to benefit the economy, and the business is financed by own capital or a loan commitment. Freelancers in liberal professions use a separate, simpler rule in the same section. Graduates of German universities and researchers or Blue Card holders are generally granted the permit if the business connects to their studies or research. Permits last up to 3 years, and a settlement permit can follow after 3 years of successful self-employment.

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Life in Germany

Finance

3

Currency

Euro

EUR

Euro

Cost of living

81

Price level · US = 100

World Bank price levels, 2025

Tax

14–45%

Income tax (national)

VAT 19%

Basic allowance EUR 12,348; 42% from EUR 69,879 and 45% above EUR 277,825 (single); solidarity surcharge of 5.5% of the tax for high earners and optional church tax.

Official rates, 2026 · headline only

Living

1

Happiness

6.9

#16 of 145 countries

World Happiness Report 2025

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Who it’s for

Founders, self-employed people and freelancers from outside the EU who want to work for themselves in Germany.

Eligibility

  • Business caseSelf-employment (s. 21(1))

    Show an economic interest or regional need, expected positive effects on the economy, and capital or a loan to realise your business idea.

    • Assessed: viability of the business idea
    • Assessed: entrepreneurial experience and capital invested
    • Assessed: effects on jobs and training, plus innovation and research
    • Local chambers and professional authorities are involved
    Official wording

    An economic interest or regional need, expected positive effects on the economy, and personal capital or a loan undertaking to realise the business idea. Assessment looks at the viability of the business idea, entrepreneurial experience, capital invested, effects on jobs and training, and innovation and research. Local chambers and professional authorities are involved.

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  • FreelancersFreelancers (s. 21(5))

    As a freelancer, you need any permit required to practise your profession to be issued or promised.

    • Section 21(5) route for liberal professions
    • The economic interest test is not applied
    • The 3-year limit in subsection (4) does not apply
    • The early settlement rule in subsection (4) does not apply
    Official wording

    Section 21(5) lets freelancers (liberal professions) be granted a permit without the economic interest test; any permit required to practise the profession must have been issued or promised. The 3-year limit and early settlement rule in subsection (4) do not apply to this route.

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  • German graduates and researcherss. 21(2a)

    Show that your business connects to your studies or research at a German university, or to your researcher permit or EU Blue Card.

    • Applies to graduates of German state or state-recognised universities
    • Also applies to holders of researcher permits or an EU Blue Card
    • As a general rule, the permit is granted (s. 21(2a))
    Official wording

    Graduates of German state or state-recognised universities, and holders of researcher permits or an EU Blue Card, are as a general rule granted the permit if the business connects to their studies or research.

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SourceResidence Act, English translation, Section 21gesetze-im-internet.deChecked Oct 30, 2026

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