Skilled workers: The Skilled Workers Immigration Act is having an impact
On 1 March 2020, the Skilled Workers Immigration Act (FEG) came into force. Further developments to the Act took effect in stages from 18 November 2023: the EU Blue Card was expanded, professional experience can now also justify immigration, and the Opportunity Card has been available since June 2024.
The figures bear witness to its success: according to the Federal Foreign Office, German diplomatic missions processed around 111,000 national visas under the FEG in 2025, representing a 7.7 per cent increase in work-related visas compared with 2024. At the end of 2025, the Federal Statistical Office recorded around 471,000 workers from countries outside the EU. Reliable figures for the whole of 2026 are not yet available.
Entrepreneurs: The framework essentially dates from 2012
Entrepreneurs generally hold at least a 50 per cent stake in the company or hold a substantial blocking minority (Huber/Mantel/Dippe, AufenthG, 4th ed. 2025, § 21, para. 6). Under Section 21(1) of the Residence Act, a residence permit may be granted if there is an economic interest or a regional need, positive effects on the economy are to be expected, and funding is secured. These core requirements stem essentially from the reform of 1 August 2012, which removed the previous standard requirements for a minimum investment and fixed employment figures in order to lower barriers (BT-Drs. 17/9436, p. 16). There is no legal entitlement. If the requirements are met – which are subject to full judicial review (VGH Baden-Württemberg, decision of 17 March 2009 – 11 S 448/09) – the authority decides at its discretion and must take into account the investment incentive provided for in the provision (Huber/Mantel/Dippe, § 21, para. 12). The relevant specialist bodies, usually the Chamber of Industry and Commerce (IHK), are also involved.
It is a long process. First, a visa must be applied for at the diplomatic mission abroad; according to the Federal Foreign Office, processing usually takes six to twelve weeks, or longer in individual cases. On top of this come the regional immigration authority and the relevant specialist bodies. In practice, this takes months. Anyone wishing to invest can hardly wait that long. In our view, Germany should catch up with international standards – with faster, more streamlined procedures. One possible approach would be prior approval by the competent authority, modelled on Section 36(3) of the Business Relocation Ordinance (BeschV), as is already practised in some regions (Huber/Mantel/Dippe, Section 21, para. 10).
Business succession: need and opportunity
The need is very real. According to the KfW Succession Monitoring 2025, around 109,000 small and medium-sized enterprises intend to arrange their succession each year by the end of 2029, whilst around 114,000 per year are considering closing down without a successor. Foreign entrepreneurs wishing to take over a business or make new investments can help address this issue. Trusted employees from the entrepreneur’s country of origin can be brought over via skilled worker schemes, such as the EU Blue Card.
Outlook: Settlement permit and naturalisation
An important incentive lies in securing permanent residence. After three years, a settlement permit may be granted in accordance with Section 21(4) of the Residence Act (AufenthG), by way of derogation from Section 9(2) of the Residence Act, without the German language proficiency required therein (Bergmann/Dienelt/Nusser, Residence Act, 15th ed. 2025, § 21, para. 18). Since 1 March 2024, it is no longer necessary for the originally planned activity to have been carried out. The decisive factor is whether the current activity, in terms of its success and duration, gives reason to expect the sustainable further development of the business; furthermore, a means of support must be secured. A successful change of business sector does not constitute a hindrance, and after at least one year of successful operation, a positive outlook can generally be assumed (Huber/Mantel/Dippe, § 21, para. 22).
In principle, German citizenship can also be acquired after five years – a further incentive for investors wishing to come to Germany.
What businesses should bear in mind now
- Plan ahead: compile a complete business plan, financing details and supporting documents at an early stage. The applicant must demonstrate the viability of the business themselves; a general concept without a legal form, registered office or regional focus is not sufficient, and the business plan must correspond to the actual planning (Administrative Court of Würzburg, Decision of 1 December 2022 – W 7 S 22.1368; Berlin Administrative Court, judgment of 11 September 2020 – 31 K 462.19 V). The Chamber of Industry and Commerce’s (IHK) statement carries considerable weight (Würzburg Administrative Court, op. cit.); a negative statement may, under certain circumstances, be of limited use (Huber/Mantel/Dippe, § 21, para. 10).
- Allow for realistic timeframes: the visa application, the Foreigners’ Registration Office and the competent authority must be dealt with in sequence.
- Assess skilled workers in parallel: The FEG procedures may be applicable for employees.
- Seek legal support: In the case of discretionary decisions, much depends on the preparation in each individual case.
Conclusion
Germany has created a suitable framework for skilled workers, but the rules governing the entry of entrepreneurs still need updating. Until the legislature makes the necessary amendments, investors and companies should expect lengthy procedures and a degree of discretion, and should prepare their applications carefully. We advise companies and entrepreneurs on visas, residence permits and naturalisation.
Key points at a glance
- The FEG has opened up new avenues for skilled worker immigration: in 2025, around 111,000 national visas were processed under the FEG.
- Section 21 of the Residence Act (AufenthG) is essentially based on the 2012 reform; protracted visa and investment procedures are holding back investment.
- A settlement permit is possible after three years, and naturalisation generally after five years – a further incentive for investors.
