German startups are missing out on foreign tech talent because of the country’s “soul-crushing” immigration system, founders and investors tell Sifted.
Debates over immigration have intensified in the weeks running up to this Sunday’s high-stakes snap election. After years of relatively lax rules, the governing SPD (Social Democratic Party) party sought to appease supporters of the far-right AfD (Alternative for Deutschland), introducing temporary border controls in September 2024 and debating tougher immigration rules.
But some tech professionals already report waiting months or even years for residency permits and visas, and struggling to book appointments through a primarily pen-and-paper system.
“Dealing with the immigration office in Germany is soul-crushing for entrepreneurs,” wrote Munich-based founder Tanya Aneichyk — who has been waiting for the extension of her residency permit for over a year — on LinkedIn.
She added: “Two banks closed my [companies’] accounts because I don’t have an EU-issued photo ID or valid proof of residency […]. I am now suing them to just get my ID and I am closing down any legal entities I ever opened in Germany. I will never try to open a business here again.”
Concerns over immigration are mounting just as Germany faces a significant talent shortage. The rise of the AfD has even led some foreign nationals to think twice about moving to Germany.
Migration has been a focal point of discussion ahead of the federal elections on Sunday, with some parties like the Christian Democratic Union (CDU) — currently first in the polls with 30% of the popular vote — and the AfD calling for a further tightening of border controls on asylum seekers. Though both parties agree in principle that skilled immigration is important for Germany.
Ongoing struggles
Bottlenecks in the immigration system make it difficult for companies to hire international talent — particularly deep tech companies that rely on certain specialists that often cannot be recruited within the EU.
Some founders report that hiring specialists from overseas can take anywhere from six to twelve months. It’s also hard for migrants to apply for tax numbers, open a bank account or get housing with a foreign passport, say many tech workers Sifted spoke to.
Ongoing struggles with bureaucracy — often caused by a lack of digitalised processes in public administrations — have left some professionals considering leaving Germany.
Jubin Shah, a senior application specialist for Molecular Health — who moved from Bengalaru, India, to take a job in Germany — says he’s heard the issue repeated by other Indian nationals living locally.
“It takes so much time for appointments — or with all these bureaucratic hurdles — people lose patience after two-three years. Some are evaluating their decision to stay in Germany and are leaving or planning to leave back to India or other countries,” he says. “This is a common discussion point in many community forums.”
Verena Pausder, chairperson of the German Startup Association, said on a recent Unicorn Bakery podcast, that if the process of coming to Germany and settling in the country is too long, talent will “think twice” about whether they wait around to be accepted into Germany.
As of January 1st, the Federal Ministry rolled out a new national visa procedure, allowing professionals overseas to apply for visas digitally.
But while this might be a good step forward, the government has to think more deeply about the factors needed to help someone to settle long term in Germany, said Pausder.
“Who speaks English when you arrive? Who helps you with housing? It doesn’t help to only think about the first or second step and then say, ‘They’ll manage the rest on their own,’” she says.
“I always call this rolling out the red carpet, and that carpet is long. So we need to think through the entire process, from start to finish.”
Read the orginal article: https://sifted.eu/articles/germany-tech-talent/
