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Tag Archive: Immigration Lawyer Cologne

1. German Immigration law: Requirements to get a permanent settlement permit in Germany

   März 7, 2011 1:41 pm Leave a Comment

   In order to enter and reside in Germany, foreigners must have a permission in the form of a residence permit.

   Under the Immigration Act, there are two types of residence permits in Germany: the temporary residence permit (“Aufenthaltserlaubnis”) and the permanent settlement permit (“Niederlassungserlaubnis”).

   

   This article seeks to examine the requirements a foreign national has to satisfy in order to get the permanent settlement permit (“Niederlassungserlaubnis”):

   1.) Requirements according to s 9 (2) Residence Act (“Aufenthaltsgesetz”, “AufenthG”)
   According to section 9 (2) Aufenthaltsgesetz usually a foreigner shall be granted the settlement permit, if

   1. he or she has held a residence permit for five years,

   2. his or her livelihood in Germany is secure,

   3. he or she has paid compulsory or voluntary contributions into the statutory pension scheme for at least 60 months or furnishes evidence of an entitlement to comparable benefits from an insurance or pension scheme or from an insurance company; time off for the purposes of child care or nursing at home shall be duly taken into account,

   4. he or she has not been sentenced to a term of youth custody or a prison term of at least six months or a fine of at least 180 daily rates due to an intentionally committed offence,

   5. he or she is permitted to be in employment, insofar as he or she is in employment,

   6. he or she is in possession of the other permits which are required for the purpose of the permanent pursuit of his or her economic activity,

   7. he or she has an adequate knowledge of the German language,

   8. he or she possesses a basic knowledge of the legal and social system and the way of life in the Federal territory and

   9. he or she possesses sufficient living space for himself or herself and the members of his or her family forming part of his or her household.

   2.) Requirements according to s 19 AufenthG
   However, there is another way to get the permanent settlement permit, if the person applying is a highly qualified person pursuant to s 19 AufenthG.

   According to s 19 (2) AufenthG highly qualified persons are scientists with special technical knowledge, teaching personnel in prominent positions or scientific personnel in prominent positions or specialists and executive personnel with special professional experience who receive a salary corresponding to at least twice the earnings ceiling of the statutory health insurance scheme.

   To be classified as a highly qualified person by the immigration office, the decisive document will be the recommendation letter issued by the employer or by the university of the person applying:

   If the person is for example employed by a university in Germany, the recommendation letter has to contain certain key topics in order to convince the immigration office to issue the residence title.

   German law firm offering legal advice on German immigration law.

2. Acquisition of real estate in Germany/Real estate purchase in Germany

   Februar 13, 2011 6:26 pm Kommentare deaktiviert für Acquisition of real estate in Germany/Real estate purchase in Germany

   Inhaltsverzeichnis:

   • A.) Real estate contract
   • B. Conveyance of the real estate by registration in the Land Registry
   • C. Tax
   • 1. Real property transfer tax
   • 2. Real estate tax
   • 3. Value Added Tax (VAT)

   The acquisition of real estate in Germany follows a course that is very different from the acquisition of movable property. This article seeks to examine the legal and tax issues that are arising or could arise on real estate transactions.

   There are no restrictions regarding the acquisition of real estate by foreigners. However, foreign companies must prove their legal existence and the power of representation of those persons acting for the company.

   Generally two steps are necessary in order to purchase real estate in Germany. The first step will be the conclusion of the real estate contract, the second step will be the conveyance of the property, i. e. the transfer of the interest in the real property from the seller to the buyer through the registration of the interest in the land register.

   A.) Real estate contract

   The preparation of the real estate contract is the most important part of the acquisition process. The real estate contract should contain the following major components:

   – the exact description of the character, location, size and usability of the object.

   – the exact price (inclusive of all duties, etc.)

   – payment terms (payment date etc.)

   – priority notice of conveyance (in order to secure the buyer’s title in the real property)

   – the conditions of the change of ownership and possible risks of liability

   – costs of the land survey (if land survey is necessary)

   – development and adjoining property charges

   – declaration about any governmental restrictions imposed on the object.

   – declaration about any liens/encumbrances

   – declaration about required municipal decisions

   Pursuant to s 873 (2) German Civil Code (Bürgerliches Gesetzbuch), the parties of the real estate contract are bound by the contract only if the declarations are recorded by a notary, or made before the Land Registry, or submitted to the Land Registry, or if the person entitled has delivered to the other person an approval of registration that satisfies the provisions of the Land Register Act.

   Thus, the parties to the real estate contract have to express their will to sell and buy in front of the notary, in this way binding themselves to their own statements.

   The notary will then proceed by concluding the contract, which has to be in written form, under penalty of nullity.

   B. Conveyance of the real estate by registration in the Land Registry

   The transfer of the ownership of the real estate will be accomplished, when the contract of the parties and their will of conveyance is entered in the land registry.

   The formalities and requirements for registration in the land registry are the same throughout Germany and there is a land register in every local district.

   However, in order to secure the vendee’s land title in the time period between the conclusion of the contract in front of the notary and the entry into the land registry, the vendee has got an expectancy right if the vendee has presented a formal request for registration or if a priority notice has been entered into the land register.

   For the registration of the title transfer or the priority notice of conveyance a registration fee must be paid to the local court.

   C. Tax

   1. Real property transfer tax

   When domestic real estate is sold or changes owner, a one-time real property transfer tax (land transfer tax) of 3.5 percent of the purchase price is levied if the purchase price or consideration exceeds EUR 2,500. Real property transfer tax is usually paid by the buyer. In Hamburg and Berlin, the rate is 4.5%.

   2. Real estate tax

   German property is subject to a real estate tax, levied annually. The tax base is the ‘assessed value’ and the tax depends on several factors like location, size, use and the local municipal coefficient, etc.

   3. Value Added Tax (VAT)

   Real property transactions are generally not subject to the German VAT. However, an entrepreneurial seller is entitled to treat the transaction as taxable.