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Settlement permit for skilled workers, § 18c Residence Act

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Skilled workers must meet these requirements to apply for a settlement permit

HERE YOU LEARN ...

... what requirements apply to applying for a settlement permit for skilled workers

... what the settlement permit for skilled workers is

... what advantages the settlement permit has for skilled workers

... when you can apply for a settlement permit for skilled workers

Written by: 

Attorney

Publication date:

05.06.2024

Reading time

10 mins

The settlement permit for skilled workers or the settlement permit for holders of an EU Blue Card is a special, unlimited residence permit that is only available to foreigners with a good education (Section 18c of the Residence Act). Academic specialists and other holders of an EU Blue Card in particular benefit from the settlement permit for skilled workers. German residence law privileges well-trained specialists and holders of an EU Blue Card because the German labor market is not only dependent on the entry of foreigners due to the shortage of skilled workers, but also on them staying for a particularly long time and integrating well here. These simplified requirements for skilled workers mean that around 50,000 holders of a Blue Card apply for a settlement permit each year .

The requirements for settlement permits for skilled workers are often unclear (e.g. in the case of self-employed skilled workers or when changing jobs). If in doubt, you should seek advice from a lawyer specializing in immigration law, as settlement permits (in comparison to normal visas) are not easy to obtain.

2. Advantages of settlement permit for skilled workers

In principle, the settlement permit is the best residence permit for all foreigners, as it has numerous advantages compared to temporary residence permits. For skilled workers, the settlement permit has additional special advantages, as it allows any employment and a change of job without permission from the immigration authorities. In this respect, the EU Blue Card in particular requires an employment relationship with a German employer. This is problematic, for example, if you work for a foreign employer from Germany (e.g. from home ). The EU Blue Card does not allow this, but the settlement permit for skilled workers does.

Another advantage of the settlement permit for skilled workers is that it not only enables employment, but also freelancing, self-employment and starting a business . As a rule, skilled workers have to decide whether they want to work as an employee or as a self-employed person. With the settlement permit, both and even a combination of both are possible (e.g. part-time employment and self-employment on a part-time basis). Many skilled workers really appreciate this flexibility.

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3. Requirements for settlement permit for skilled workers

To apply for a permanent residence permit, skilled workers must meet numerous requirements. For example, applying for a settlement permit is fundamentally dependent on having paid into the pension insurance scheme for a certain period of time. The necessary period of time differs depending on the residence status. As a rule, you must have paid into the pension insurance scheme for at least 60 months when applying for a settlement permit. However, this period can be reduced for skilled workers (especially for holders of an EU Blue Card) if you have German language skills (see below). Overall, the following requirements apply when applying for a settlement permit for skilled workers in accordance with Section 18c of the Residence Act:


1. Stay of at least 21 months

2. Payment into pension insurance

3. Language skills (A1 or B1)

4. Secure livelihood

5. Basic knowledge of the legal and social systemIf all of these requirements are met, you can apply for a settlement permit. The requirements are explained below.


3.1. Period of residence for settlement permit

To apply for a settlement permit in Germany, you must stay in Germany for a certain period of time. The necessary periods are as follows:

  • Holders of an EU Blue Card with B1 language skills: Application for a settlement permit for skilled workers possible after 21 months

  • Holders of an EU Blue Card with A1 language skills: Application for a settlement permit for skilled workers possible after 27 months

  • Other skilled workers who do not hold an EU Blue Card: Application for a settlement permit for skilled workers is possible after 36 months .


3.2. Pension insurance contributions for settlement permit

With regard to the necessary length of stay, however, it should be noted that it is not just the length of stay in Germany that is important, but above all the period in which pension insurance contributions were paid. Proof of pension insurance contributions must be provided to the immigration authorities when applying. This is usually done by submitting the so-called pension insurance history . In this document, the pension insurance company confirms which contributions have already been paid. The pension insurance history can be applied for online on the German Pension Insurance website . Only personal data, including the insurance number, must be entered in the online form. The pension insurance company then sends the pension insurance history by post. It is usually dispatched very quickly (usually within a week).

3.3. Language skills

Since the settlement permit in most cases also requires proof of German language skills, this language skills must be proven to the authorities. This is usually done with a language certificate from a recognized language institute (e.g. the GOETHE Institute). However, such a language certificate is not mandatory, but merely documentary evidence. Proof of language skills can also be provided by an oral audition if the immigration authorities want to arrange an interview. This is certainly possible for skilled workers, since the immigration authorities (especially in Berlin) are quite willing to cooperate when it comes to applying for settlement permits for skilled workers.


3.4. Livelihood

In order to apply for a settlement permit, it is also necessary that your livelihood is secured (Section 5 Paragraph 1 No. 1 of the Residence Act). As a rule, proof of livelihood is provided by an indefinite and ongoing employment contract. However, this is not mandatory, as livelihood can also be secured by other proof (e.g. large assets). However, as livelihood must always be secured for the duration of the stay and residence with a settlement permit is indefinite, most immigration authorities require an employment contract.


3.5. Integration in Germany

According to the law, in order to apply for a settlement permit, the foreigner must have a basic knowledge of the legal and social order and living conditions in the federal territory (Section 9, Paragraph 2, Sentence 1, No. 8 of the Residence Act). This is intended to prove that the foreigner is integrated. This is usually proven by the so-called integration course or by the "Living in Germany" test. Sufficient integration is also given if you have studied in Germany or completed an apprenticeship in Germany. Ultimately, integration can be proven in various ways. This applies in particular to foreigners who have studied, since according to the Integration Ordinance, sufficient integration can be assumed if the foreigner has a university or technical college degree or a corresponding qualification and it is reasonable to assume that the foreigner will integrate into the economic, social and cultural life of the Federal Republic of Germany without state help.


6. Other requirements for a settlement permit

There are a few other requirements for applying for a settlement permit for skilled workers and holders of an EU Blue Card, but these can usually be met without any problems, which is why the individual requirements will not be discussed in detail here.

Specifically, the following additional requirements are necessary for applying for a permanent residence permit for skilled workers (settlement permit):


  • Possession of a professional license, if required (e.g. engineers, doctors, lawyers),

  • Fulfillment of passport requirements,

  • Entry with the correct visa,

  • no impairment of the security interests of the Federal Republic of Germany and no interest in deportation (in particular no previous convictions).


In individual cases, there may be deviations, particularly with regard to the documents required to apply for a settlement permit. If in doubt, legal advice should be sought before applying for a permanent settlement permit for skilled workers.

4. Alternative to the settlement permit for skilled workers

Instead of a pure settlement permit, skilled workers have the option of applying for a permanent EU residence permit in accordance with Section 9a of the Residence Act. This option offers various advantages that are particularly relevant for long-term planning. A major plus point is the permission to stay outside the EU for up to 12 months without losing residence status. In addition, this permit is recognized in all EU countries, which makes mobility within Europe much easier. However, the requirements are more demanding than for the classic settlement permit: In addition to at least five years of legal residence in Germany, sufficient language skills (at least level B1), a secure livelihood and successful integration must also be proven. For qualified skilled workers who want to gain a foothold in Germany and possibly also in other EU countries in the long term, the permanent EU residence permit nevertheless offers a decisive advantage in terms of flexibility and security.

Since the differences regarding the requirements and legal consequences of a settlement permit and a permanent residence permit in the EU are sometimes very specific to individual cases, you should consult a lawyer specializing in migration law if you have any further questions on this topic.

5. Naturalization without a settlement permit for skilled workers

Skilled workers, especially holders of the EU Blue Card, have the opportunity to become a German citizen without a settlement permit. Normally, a permanent residence permit such as a settlement permit is required for naturalization. However, there are exceptions, particularly for qualified skilled workers with a residence permit such as the EU Blue Card.

Naturalization without a settlement permit requires, among other things, that economic integration is successful, i.e. that a secure livelihood and sufficient language skills (at least level B1) can be proven. Other conditions include a commitment to the free and democratic basic order and proof that no serious crimes have been committed.

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6. FAQ (Residency permit requirements)

 Are the visa periods also taken into account when applying for a settlement permit for skilled workers?

Yes, the visa periods also count towards the 21 months or 27 months. It is not necessary for you to hold a residence permit as a skilled worker.



I had another residence permit before applying for the EU Blue Card. Do these periods also count towards the settlement permit?

That depends on whether you also fulfilled the requirements for the EU Blue Card with the other residence title. The law only requires employment that meets the requirements for the EU Blue Card in order for a settlement permit to be issued. It is not necessary for you to actually have the EU Blue Card. However, we would like to point out that some immigration authorities (e.g. the KVR Munich) interpret the law differently.



What is the relevant point in time for calculating the period of residence?

The months in which you have paid into the pension insurance scheme are decisive for calculating the periods of residence.



Can spouses of Blue Card holders also apply for a settlement permit after 21 or 27 months?

No, the privileged status for Blue Card holders does not apply to spouses and children. However, with the new Skilled Immigration Act from 01.03.2024, a new regulation will apply that allows spouses of skilled workers to apply for a settlement permit after 3 years if the relevant requirements are met.



When can self-employed persons apply for a settlement permit?

Self-employed persons can apply for a settlement permit after three years if they have successfully carried out their self-employed activity (Section 21 (4) AufenthG).



When can self-employed persons apply for a settlement permit?

For systematic reasons, the privileged status for self-employed persons (Sec. 21 (4) AufenthG) does not apply to freelancers. According to the general rules, freelancers can therefore only apply for a settlement permit after 5 years.



Can children also apply for a settlement permit?

Yes, children can also apply for a settlement permit. However, children must generally have reached the age of 16 (§ 35 AufenthG).



Do periods of unemployment benefit I (ALG I) count as pension insurance periods?

There is no definitive answer to this question. Some authorities do not count periods of receipt of ALG I as periods that can be taken into account for the settlement permit. However, the State Office for Immigration (LEA) in Berlin allows ALG I periods to be sufficient (p. 81 of the VAB dated 29.12.2023). This legal opinion is correct, as ALG I is an insurance benefit and therefore a “separate” benefit.



Do periods of receipt of unemployment benefit II/citizens' benefit/social assistance count as pension insurance periods?

No. Only “own” contribution payments count as creditable pension insurance periods. However, unemployment benefit II, citizen's allowance and social assistance are not “own” benefits, but state benefits.



Are periods of absence for child-raising/care creditable?

No. As a rule, periods of absence for child-raising and care cannot be counted towards the periods of residence required for a permanent residence permit.



What are “comparable expenses” for pension insurance?

Some people do not pay into the pension insurance scheme (e.g. the self-employed and freelancers). When applying for a settlement permit, these people do not have to prove their pension insurance history, but rather “comparable expenses”. Comparable expenses are a pension income of at least 1,407.80 euros per month or assets totaling 216,481 euros.



What does securing a livelihood mean?

A foreigner's means of subsistence is secured if he or she can cover his or her living expenses, including adequate health insurance cover, without recourse to public funds. In this respect, it must be proven that sufficient financial means are available to pay daily expenses, rent and health insurance.



Can I apply for a settlement permit without an employment contract?

In principle, it is possible to apply for a settlement permit without a valid employment contract. However, you must expect that you will then encounter considerable resistance from the immigration authorities. In order to apply for a residence permit (including a settlement permit), you must be able to support yourself. The livelihood must be secured for the period for which the respective residence title is applied for. For example, if you apply for a residence permit for six months, you must prove that you can secure your livelihood for six months. This legal concept can also be applied to the settlement permit: Since the settlement permit is valid indefinitely (i.e. forever), you must also prove that you can secure your livelihood forever. According to most immigration authorities, this specifically means that you have an open-ended employment contract and have already passed the probationary period. However, this view is by no means mandatory. According to case law, it is sufficient that the previous employment history shows that the foreigner will be able to continue to earn a living (see, for example, OVG Berlin, decision of 15.04.2005 - 2 N 314.04). It is therefore not necessary that the foreigner has a job when applying for the permanent residence permit (settlement permit), but only that it can be expected that they will find a job in the near future. This can often be assumed for skilled workers and especially for EU Blue Card holders, as a good education and an unbroken CV is a very strong indicator that the foreigner is able to find a new job. However, this cannot be answered in general terms, but depends on the specific employment history and the current labor market situation. If in doubt, a lawyer specializing in migration law can advise you on this.



Do I have to complete the integration course in order to apply for a settlement permit?

No. Although the integration course provides evidence of sufficient integration, the course is optional. This applies in particular to foreigners who have studied (§ 4 Para. 2 IntV).



Do I have to complete the “Living in Germany” test in order to apply for a settlement permit?

No, the “Living in Germany” test or the naturalization test is not a prerequisite for applying for a settlement permit. However, if you have already completed the course, you can use it to prove that you meet the integration requirements for the settlement permit.

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