finbird digital blog

Residency Status 101


The German law provides for various forms of residence titles: Visa, Residence Permit (Aufenthaltserlaubnis), the Permanent Residence in Germany (Niederlassungserlaubnis), the long-term residency (Erlaubnis zum Daueraufenthalt-EU) and the Blue Card for highly qualified persons (Blaue Karte). The higher the professional qualification of the applicant, the more preferentially the residence title is granted.

The residence permit, which is valid for five years, must be applied for if the stay lasts longer than three months and employment is to be secured. Citizens of the EU, Switzerland and the EEA (European Economic Area) do not need a residence permit.

The Blue Card entitles particularly qualified specialists with a university degree and a contractually agreed minimum salary to stay in the EU for four years

For the case of obtaining a mortgage for a purchase, as an EU citizen, you can usually expect the same requirements applied to your case as would apply for a German citizen (i.e. up to 100% of the value). However, some lenders may require a higher down payment.

Non-EU citizens with a temporary residence permit, when compared to German nationals and EU citizens, can expect to encounter some restrictions. Generally, you are considered a higher risk by potential lenders, which is why fewer banks are willing to grant you a loan. Those that do grant a loan usually require a higher down payment. You can improve your chances of getting a mortgage by obtaining a permanent residence permit.