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Autor: Amannda Yamada

Incoterms® 2020 explained for SMEs: EXW, FOB, CIF, DDP (simple and practical)

I advise companies on cross-border sales and logistics. Below I explain how Incoterms® 2020 shift risk and costs, which terms make sense for SMEs, and how to avoid the common traps.

Why this matters

Incoterms share two jobs: who pays for which leg of transport and when risk moves from seller to buyer. If you pick the wrong term, you pay for steps you did not expect or carry risk for too long. The fix is simple: choose the right rule, write it cleanly, and match your contract and insurance.

Essentials in one minute

  • Risk ≠ cost. Risk passes at a point defined by the term. Costs follow the split in the rule. They are not always the same moment.
  • Incoterms do not govern payment, title, or breach. Use your sales contract for those.
  • Always add the named place/port and “Incoterms® 2020”. Example: “CIF Santos, Incoterms® 2020”.
  • Two families: any mode (EXW, FCA, CPT, CIP, DAP, DPU, DDP) and maritime/river only (FAS, FOB, CFR, CIF).

The seven terms most SMEs actually use

EXW — Ex Works (seller’s premises)

Risk: passes when goods are placed at the seller’s disposal. Good for: domestic pick-ups by local buyers. Trap: poor choice for exports; buyer may struggle to clear export formalities. I rarely advise EXW for exports.

FCA — Free Carrier (named place)

Risk: passes when the goods are handed to the carrier at the named place. Good for: most container shipments. Tip: name the exact handover point (e.g., “FCA Hamburg Depot, Incoterms® 2020”).

FOB — Free On Board (named port of shipment) — vessel only

Risk: passes when goods are on board the vessel. Good for: bulk or non-container loads. Trap: do not use FOB for containers; use FCA instead.

CFR — Cost and Freight (named port of destination) — vessel only

Risk: passes when goods are on board at port of shipment. Seller pays freight to destination port. Insurance: buyer’s job (unless you choose CIF).

CIF — Cost, Insurance and Freight (named port of destination) — vessel only

Like CFR but with seller’s insurance. Minimum cover for the buyer’s benefit. Trap: seller still bears risk only to on-board, not to the destination port. Many mix this up.

DAP — Delivered At Place (named place of destination)

Risk: passes on arrival, ready for unloading. Good for: door-to-door when the buyer clears import. Tip: name the exact site (e.g., “DAP Buyer Warehouse, Lyon”).

DDP — Delivered Duty Paid (named place of destination)

Seller handles everything, including import clearance and duties. Trap: taxes, registrations, and indirect tax rules can bite. Only use DDP where you fully control import compliance (or have a reliable local partner).

Choosing a term: a simple map

  • Containers? Prefer FCA (seller hands to the first carrier) or CPT/CIP (seller also pays the main leg, with CIP requiring higher insurance).
  • Bulk or non-container, vessel loading? FOB/CFR/CIF.
  • Buyer wants a “landed” price but will handle import? DAP.
  • You will handle import and taxes? DDP (only if you control compliance).
  • Local pick-up? EXW (domestic). For exports, avoid EXW; use FCA.

Risk points and insurance (keep them aligned)

  • Write the delivery/risk point in the contract. Example: “Risk passes on handover to the first carrier at FCA Hamburg Depot”.
  • Match cargo insurance to the risk. Under CIF/CIP, the seller arranges insurance for the buyer’s benefit. Under other terms, agree who insures and for what value.
  • Do not duplicate obligations. If you use DAP, do not also promise import clearance.

Common pitfalls I see

  • FOB for containers. Use FCA instead.
  • Missing the named place/port. “DAP” sozinho é incompleto; precisa do local exato.
  • Assuming costs = risk. Em CIF, o risco muda no porto de embarque; o custo do frete vai até o destino.
  • DDP sem estrutura local. Impostos e registros podem travar a entrega.
  • Incoterms “fazem tudo”. Não fazem. Pagamento, propriedade, penalidades e garantias ficam no contrato.

My short checklist (copy this)

  • Termo certo para o modo (FCA para contêiner; FOB/CFR/CIF para carga a granel).
  • Local/porto nomeado com precisão e “Incoterms® 2020”.
  • Cláusula de risco no contrato combinando com o termo.
  • Seguro alinhado ao ponto de risco.
  • Nenhuma promessa duplicada (especialmente em DAP/DDP).
  • Fatura, packing list e documentos combinando com o termo.

FAQs

Incoterms dizem quem paga impostos?

Não diretamente. Eles dizem quem paga transporte e quem cuida do desembaraço. Impostos e regras fiscais precisam de atenção no contrato e com o despachante.

Posso usar CIF em frete aéreo?

Não. CIF/CFR/FOB são para marítimo/fluvial. Para aéreo, use FCA/CPT/CIP.

EXW é sempre ruim?

Não para retiradas domésticas. Para exportar, prefiro FCA porque o exportador controla a saída do país.

Preciso citar “Incoterms® 2020”?

Sim. Especifique a versão para evitar dúvidas.

Call to action

Schedule a personal consultation. I will check your draft order, pick the right Incoterm, align insurance and documents, and reduce delays and disputes.

Further reading

Disclaimer: This article provides general information and does not replace individual legal advice.

CISG vs German law: which law for your B2B sales contract?

I advise companies on cross-border contracts. Below I explain, in plain language, when the UN Sales Convention (CISG) makes sense and when German domestic sales law is the better fit.

The short answer

  • Pick CISG if you want a neutral, international set of rules for sale of goods between companies in different countries.
  • Pick German law (BGB/HGB) and exclude CISG if you need familiar German concepts, strong control of warranties and limitation periods, or your deal goes far beyond a simple sale of goods.

What the CISG is (in one minute)

The CISG is an international treaty for B2B sales of goods. Many countries have joined. If both parties have their places of business in CISG countries, the CISG can apply by default unless you exclude it in the contract.

When CISG applies by default

  • Seller and buyer are in different countries that are CISG states; or
  • Conflict-of-laws rules lead to the law of a CISG state.

You can opt out with a clear clause. Example: “This contract is governed by German law. The UN Convention on Contracts for the International Sale of Goods (CISG) does not apply.”

When CISG does not apply

  • Consumer sales, auctions, and certain financial instruments (shares, etc.).
  • Ships, vessels and aircraft; electricity.
  • It also does not govern property transfer, product liability, or the validity of clauses. Local law covers these points.

Core ideas under CISG (practical view)

  • Conformity & notice: the buyer must examine the goods and notify lack of conformity within a reasonable time. There is a long-stop of up to two years from delivery (unless a longer period was agreed).
  • Remedies: repair or replacement; price reduction; damages; and, in serious cases, avoidance (termination).
  • Fundamental breach: only a serious breach allows avoidance.
  • Damages: cover foreseeable loss; the other side must mitigate loss.
  • Interest: interest is due on late payments, but the rate is not fixed by the CISG—your contract should say which rate applies.
  • Force majeure: non-performance may be excused if an impediment beyond control exists and you notify the other party.

German domestic sales law (very short)

German contracts outside the CISG follow the Civil Code (BGB) and, for merchants, the Commercial Code (HGB).

  • Warranty logic: cure (repair/replace) first, then price reduction or rescission, plus damages if conditions are met.
  • Limitation periods: standard periods can be adjusted by contract in B2B deals. State them clearly.
  • Commercial inspection duty: if both parties are merchants, the buyer must promptly inspect and notify defects. Otherwise, the goods may be deemed approved (hidden defects excepted).
  • Retention of title & property transfer: handled by national law (not by the CISG). Draft these clauses under German law if delivery is in Germany.

CISG or German law? A simple chooser

  • Mostly “boxes of goods”, recurring trade, neutral venue? CISG can be efficient and predictable across borders.
  • Complex specs, services and IP mixed in? German law (excluding CISG) often gives finer control.
  • You want to keep standard German warranty and limitation practice? Choose German law and say the CISG is excluded.
  • Counterparty wants neutrality? Keep German law for property/retention of title but apply CISG to the sales part. Spell this out.

How Incoterms and choice of law work together

Incoterms define delivery, risk and cost points (e.g., FCA, FOB, CIF, DDP). Choice of law covers warranties, remedies and many defaults. Use both, but do not duplicate or contradict them. Example: if you use CIF, do not add a conflicting risk-transfer rule.

Battle of forms (keep it boring and clear)

  • Say which document wins: “This contract prevails over all purchase orders or general terms.”
  • Confirm acceptance in writing. Avoid silent “surprises”.
  • Attach the final version of the terms and refer to the date or version number.

Checklist: clauses I usually add

  • Governing law: “German law applies. The CISG does/does not apply.”
  • Jurisdiction or arbitration: court seat or arbitral rules and seat.
  • Incoterm + place of delivery: one line. No duplicates.
  • Inspection & notice: time frame and method (email address, who receives notices).
  • Warranties & limitation periods: periods and scope adapted to B2B.
  • Retention of title: simple, with cooperation duty for registrations abroad if needed.
  • Force majeure: short clause aligned with CISG logic or German law—pick one wording and keep it consistent.
  • Language & currency: state both. Add a rule for translations if a dispute arises.

FAQs

Does CISG apply automatically?

Often yes, if both parties are in CISG countries. To avoid doubt, write your choice of law and say whether CISG applies.

Can I exclude CISG and still use Incoterms?

Yes. Incoterms work with or without CISG. They are about delivery, risk and costs. Choice of law is about remedies and other rules.

Is CISG only for big companies?

No. It is used by many SMEs. The key is to draft notices, limitation and risk rules clearly.

We sell machines with installation and training. CISG or German law?

Mixed contracts can be tricky. If services dominate, German law (without CISG) can be cleaner. If it is mostly goods, CISG may still fit. Decide case by case.

Call to action

Schedule a personal consultation. I will review your draft, pick the right law, align Incoterms and warranties, and give you a clean, enforceable contract.

Further reading (official)

Disclaimer: This article provides general information and does not replace individual legal advice.

Work contracts for international hires in Germany: probation, non-compete, and home office

I advise employers who hire non-EU professionals. Below is a practical guide to set clean contracts and policies that work in Germany. Short sentences. No jargon. Only what you need to avoid delays and disputes.

What I look for first (quick checklist)

  • Job–qualification fit: title and duties match the route used for immigration.
  • Working time: hours, breaks and reliable time recording (also when remote).
  • Place of work: office, home office, mobile work, and any cross-border limits.
  • Equipment & data: who provides devices, IT security, confidentiality and IP.
  • Probation: clear rules on length and notice.
  • Non-compete (if needed): scope, compensation and duration that are lawful.

Probation (Probezeit) and notice

Keep it simple. In Germany, probation is usually up to six months. During probation, you can agree a short statutory notice (commonly two weeks). After probation, use the normal statutory or contractual notice periods based on tenure.

  • State it clearly: length of probation, notice during probation, and what happens after.
  • No surprises: avoid hidden performance conditions. Say what you expect in plain words.
  • Documentation: run short check-ins and keep notes. It helps if you must act fast.

Post-contractual non-compete (when and how)

Use it only when the role truly needs it. German law allows a post-contractual non-compete if you meet strict rules:

  • Written form: the clause must follow the required written form and be handed to the employee.
  • Compensation: pay at least 50% of the last contractual earnings for the duration of the restraint (so-called compensation for restraint).
  • Duration: maximum two years.
  • Scope: define activities, territory, and customer groups precisely. Keep it no broader than needed.
  • Consideration of interest: the clause must be reasonable for both sides; otherwise a court can trim or strike it.
  • Return & handover: add a clean handover and return-of-property rule at exit.

Tip: if you only need to protect clients and staff, you may use a separate non-solicitation clause with clear limits.

Home office vs mobile work (define it)

Do not mix terms. In Germany, “home office/telework” means a regular workstation at home, planned and equipped with your help. “Mobile work” means the employee works from changing locations (not a fixed home desk).

  • Choose the model: home office (fixed setting) or mobile work (flexible). You can combine them, but define each.
  • Place of work: name the office address, state the home address if telework, and set a default country for work.
  • Equipment: list devices and who pays for internet, electricity, and furniture (if any).
  • Health & safety: confirm risk assessment duties for telework and give basic guidance for mobile work.
  • Availability window: set contact hours and a rule for meetings at the office when required.

Working time and recording

German rules protect health. Keep them visible in the contract and in your policy.

  • Daily/weekly limits: plan for up to eight hours per day on average, breaks and rest periods, and Sunday/holiday rules.
  • Reliable time recording: record start, end and breaks—also in remote settings. Keep the method simple and consistent.
  • Overtime: define approval, recording, and compensation or time off in lieu.
  • Managers: if you exclude certain roles from overtime pay, do so carefully and in line with the law.

Data protection, confidentiality and IP

  • Confidentiality: protect trade secrets in plain words and point to your internal policy.
  • Data protection: give the employee privacy information; set rules for using personal devices and cloud tools.
  • Access control: limit who can see client data when working remotely; use MFA and encryption.
  • IP assignment: make sure work results belong to the company. Add a short “return and deletion” rule at exit.

Cross-border remote work (keep control)

Work from another country triggers social security, tax and sometimes immigration. Set a simple rule:

  • Approval first: no cross-border work without written approval.
  • EU/EEA basics: for any work abroad, check the need for an A1 certificate and local limits.
  • Non-EU countries: check visas, tax and permanent-establishment risk before you allow it.
  • Caps: if you allow short stays abroad, set a clear yearly cap and approval flow.

My step-by-step for HR

  1. Pick the model: office-first, hybrid with home office, or mobile work only. Write it down.
  2. Draft the contract: job–qualification fit, probation, notice, working time, place of work, equipment, IP and confidentiality.
  3. Add policies: working-time recording, remote-work rules, IT security, data protection, expenses.
  4. Decide on non-compete: only if needed; if yes, meet the formalities (written form, 50% compensation, precise scope, max two years).
  5. Plan onboarding: accounts, hardware, time-recording method, and checklists for manager and employee.

Common pitfalls I see

  • Vague place of work: the contract says “remote” but gives no country or limits.
  • No time recording when remote: breaches working-time rules and invites disputes.
  • Over-broad non-competes: no compensation, too long, or too wide—often unenforceable.
  • Title–task mismatch: immigration based on one profile, contract describes another.
  • Missing IP/confidentiality basics: silence on ownership and return of data at exit.

FAQs

How long should probation be?

Commonly up to six months. Use the short statutory notice during probation and state the post-probation notice separately.

Do I need a non-compete for every role?

No. Use it only when justified. If you need it, follow the strict rules: written form, at least 50% compensation, max two years, precise scope.

Is there a legal right to home office?

No general right. You decide the model in the contract or policy. For telework, plan equipment and safety duties.

How do we record time when employees work from home?

Pick one reliable method (tool or form). Record start, end and breaks. Keep it the same for office and remote work.

Can employees work from abroad?

Only with prior approval. Check social security (A1 in the EU/EEA), tax, and any visa rules before you allow it.

Call to action

Schedule a personal consultation. I will align your contract, remote-work policy and (if needed) non-compete with German rules so you can hire fast and avoid disputes.

Further reading (official)

Disclaimer: This article provides general information and does not replace individual legal advice.

Hiring non-EU professionals in Germany (2025): clear routes beyond the EU Blue Card

I advise employers on lawful, fast and clean hiring of non-EU talent. Below is a practical map of the main routes besides the EU Blue Card, what they are good for, and how to avoid delays.

Why this matters now

Germany’s Skilled Immigration Act has expanded options and simplified several steps. That is good news—but only if you choose the right route for each hire. The wrong route costs weeks. The right one shortens onboarding and reduces risk.

The main routes beyond the EU Blue Card

1) Skilled worker permits (Sections 18a/18b)

When it fits: the candidate has a recognised qualification (vocational training or academic degree) and a matching job offer. Formal recognition may be required before entry, unless another pathway applies.

2) IT specialists with professional experience (Section 19c(2))

When it fits: experienced IT professionals who can prove several years of relevant work even without a university degree. A suitable employment contract and proof of experience are key.

3) Recognition partnership (enter first, recognise in Germany)

When it fits: the candidate’s foreign qualification is not yet recognised, but you are ready to employ them while the recognition procedure is completed in Germany. Employer and employee commit—formally—to carry out recognition after entry.

4) Intra-Corporate Transferee (ICT) Card

When it fits: managers, specialists or trainees transferred from a non-EU entity to your German entity for a limited period. Enables mobility within the EU under ICT rules.

5) Western Balkans Regulation (quota track)

When it fits: candidates from the Western Balkans in non-regulated occupations, under an annual quota. Useful for operational roles where other routes do not apply.

6) Opportunity Card (Chancenkarte) → switch to employment

When it fits: candidates come to Germany for job search under a points/baseline system, work part-time during the search and—once employed—switch to a regular employment title.

Which route when? (simple map)

  • Degree or recognised vocational training that matches the job? Start with Skilled worker 18a/18b.
  • Strong IT experience but no degree? Consider IT specialists (19c(2)).
  • Qualification not yet recognised but you can employ and train? Use a Recognition partnership.
  • Internal transfer from a non-EU group company? Use an ICT Card.
  • Candidate from Western Balkans and role fits quota track? Western Balkans Regulation.
  • No offer yet but a strong profile? Opportunity Card for job search, then switch.

Contract & compliance essentials (HR quick wins)

  • Job–qualification match: job title and duties must fit the candidate’s qualification/experience and the chosen route.
  • Salary comparability: offer market-level pay appropriate to the role and route. Some routes may require authority review.
  • Recognition & licences: for regulated professions, plan recognition steps early; for partnerships, define milestones in writing.
  • Onboarding timing: plan start dates with buffer for visa appointments, authority checks and biometrics.
  • Policies: clarify probation, working time, remote/hybrid rules, and confidentiality. If you use a post-contractual non-compete, ensure it follows legal requirements (including compensation).

My step-by-step for employers

  1. Pick the route first. Map the candidate to the right pathway (18a/18b, 19c(2), Recognition partnership, ICT, Western Balkans, Opportunity Card→switch).
  2. Prepare evidence. Degree/recognition (or experience proof), CV with duties, references, licences (if regulated), and a clean job description.
  3. Align the contract. Title, tasks and salary consistent with the chosen route. Add a checklist for HR and the candidate.
  4. Coordinate with authorities. Where required, support the candidate for recognition, approvals and appointments. Keep a single contact person for status.
  5. Plan the switch or extension. For Opportunity Card or recognition partnership, schedule the later switch to a standard employment title and set internal reminders.

Common pitfalls I see (and how to avoid them)

  • Wrong route: applying for a title that does not fit the profile. Decide the route before drafting the contract.
  • Evidence gaps: missing proof of experience for the IT route, or incomplete recognition files for regulated roles.
  • Title–task mismatch: job title does not reflect duties; fix with a precise description aligned to the route.
  • Late planning for switches: forgetting the later switch (e.g., Opportunity Card → employment) and losing weeks.
  • Underestimating lead times: consular slots, local appointments and biometrics need buffer time.

FAQs

Can we hire experienced IT talent without a degree?

Yes, under the IT specialists route with proven professional experience and a suitable contract. Choose this route only if the profile clearly fits IT.

Do we always need recognition before entry?

No. With a recognition partnership, the employee can enter and complete recognition in Germany while working—subject to meeting the legal requirements and formal commitments.

When should we use an ICT Card?

For time-limited transfers of managers, specialists or trainees from a non-EU group company to your German entity. It also enables certain EU mobility rights.

What is the Western Balkans Regulation useful for?

For candidates from the Western Balkans in non-regulated occupations under an annual quota. It is practical when other routes do not apply.

Can candidates work while searching under the Opportunity Card?

Yes—up to a limited number of hours per week and short job trials. Once they have a suitable offer, they switch to an employment title.

How do we speed things up?

Pick the correct route, draft a clean job description, prepare evidence early, and plan authority appointments with buffer time. One project owner in HR keeps momentum.

Call to action

Schedule a personal consultation. I will map the right route for your role, align contract language with immigration rules, and set a clear onboarding timeline.

Further reading (official)

Disclaimer: This article provides general information and does not replace individual legal advice.

German nationality reform (June 2024): dual citizenship and faster naturalisation

I advise private individuals and companies on nationality and migration. Here is a clear guide to what changed on 27 June 2024, who qualifies, and how to prepare a clean application without delays.

Why this matters

The 2024 reform made two big moves: Germany now allows dual citizenship in principle, and the regular timeline for naturalisation is five years (not eight). If you plan early and file with the right evidence, the process is smoother and faster.

What changed in 2024 (plain language)

  • Dual citizenship: you can keep your existing nationality when you become German (subject to your other country’s rules).
  • Standard timeline: naturalisation is generally possible after 5 years of lawful residence (previously 8).
  • Children born in Germany: a child can receive German citizenship at birth if one parent has lived in Germany lawfully for at least 5 years and holds a permanent right of residence.
  • Paperwork clean-up: no more “retention permit” to keep German citizenship when taking another, and no more “options obligation” for German-born children of foreign parents.

Eligibility at a glance (standard 5-year route)

For most adults, you apply after 5 years if you meet the core requirements below. Keep the evidence simple and complete.

  • Residence: 5 years of lawful, habitual residence in Germany.
  • Language: German at level B1 (certificate or accepted proof).
  • Civics: knowledge of the legal and social order (naturalisation test or recognised equivalent).
  • Livelihood: you can support yourself (and dependants) without relying on basic benefits, with exceptions in specific justified cases.
  • Good conduct: no serious criminal offences; commitment to the free democratic order.
  • Identity & documents: valid passport/ID, birth/marital records, residence permits, registration records, etc.

“Special integration” fast-track

Under the 2024 law, a further-reduced timeline can be possible in cases of special integration achievements (for example, very strong German and outstanding integration). This is applied case-by-case and requires strict proof.

Policy watch (September 2025): the Federal Government has proposed abolishing the 3-year “turbo” route. The draft law went through a first reading in June 2025 and is under parliamentary review. Until a change is passed and enters into force, the 2024 rules remain applicable. Always check the current status before filing.

My step-by-step plan to file well

  1. Timeline check. Confirm you meet the 5-year mark (or whether a shorter route may apply under the current law).
  2. Language & civics first. Secure B1 proof and the naturalisation test (or recognised exemption) before you book an appointment.
  3. Documents package. Prepare identity, residence, employment/income, insurance, and civil-status records. Keep translations certified where required.
  4. Dual citizenship note. If you will keep another nationality, verify your other country’s rules (some countries restrict dual nationality).
  5. Submit cleanly. File with a complete checklist and labelled copies. Avoid “to follow” gaps that trigger pauses.

Quick self-check (copy this)

  • I have 5 years of lawful residence in Germany (continuous and provable).
  • I hold B1 German (or stronger) and have the naturalisation test done or a valid exemption.
  • I can show financial independence (with permitted exceptions where the law allows).
  • My identity and civil-status records are complete and translated where required.
  • If applicable, I confirmed my other country’s rules on dual nationality.

Common pitfalls (and how to avoid them)

  • Evidence gaps: missing residence history, tax/insurance records, or civil-status documents slow the file.
  • Language proof issues: presenting certificates the authority does not recognise, or not matching B1.
  • Unclear names/dates: inconsistent spellings across passports, birth and marriage documents—fix with official corrections before filing.
  • Dual citizenship assumptions: forgetting that your other country might restrict or condition dual nationality.
  • Rushing appointments: booking before your package is complete; better to submit once, cleanly, than to patch later.

FAQs

Can I keep my other citizenship?

Yes—Germany now allows multiple citizenship in principle. Your other country’s rules still apply, so check them before you file.

Is five years always enough?

Five years is the general rule under the 2024 reform if you meet all other conditions. Some applicants may need more time if requirements are not fully met.

What about the 3-year route?

The 2024 law introduced a shorter path for special integration achievements. In 2025 the government proposed abolishing it; Parliament is reviewing the draft. Check the current status before relying on it.

My child was born in Germany. Can they be German?

Yes, if one parent has at least 5 years of lawful residence in Germany and holds a permanent right of residence at the time of birth.

Do I need a “retention permit” if I later add another citizenship?

No. After the 2024 reform, you no longer need a retention permit to keep German nationality when you acquire another.

Call to action

Schedule a personal consultation. I will review your eligibility, clean up your document trail, and help you file once—properly.

Further reading (official)

Disclaimer: This article provides general information and does not replace individual legal advice.

Opportunity Card (Chancenkarte) Germany 2025: the points system in plain language

I advise companies and skilled professionals on German migration and employment law. Here is a clear guide to the Opportunity Card—what it is, how the points work, and how to move fast without mistakes.

Why this matters now

The Opportunity Card is Germany’s new route for coming to look for qualified work. It is practical if you do not yet have a German job offer. Used correctly, it cuts time-to-hire and avoids repeat filings. Used poorly, it stalls. This article shows the exact rules for 2025 and a simple plan to follow.

Two ways to qualify

Option 1 — Recognised qualification (no points needed)

If your foreign vocational or academic qualification is fully recognised in Germany—or you obtained it in Germany—you can qualify without the points system.

Option 2 — Points-based route (you need at least 6 points)

If your foreign qualification is not yet fully recognised, you can qualify with the points system. You must reach at least six (6) points and meet the baseline requirements below.

Baseline requirements (both options)

  • Language: German at least A1 or English at least B2 (CEFR).
  • Formal qualification: completed vocational training (normally ≥ 2 years) or an academic degree recognised in the country where you earned it.
  • Financial means: ability to cover living costs during job search (for 2025, a blocked account is typically set with a minimum of €1,091 net per month) or a formal declaration of commitment.

How the points are awarded (Option 2)

You collect points across several criteria. Evidence is required for every point you claim.

  • Partial recognition of your qualification: +4 points (including required compensatory measures for regulated professions).
  • Shortage occupation: +1 point if your formal qualification is in an occupation Germany lists as in short supply.
  • Professional experience (related to your qualification):
    • ≥ 2 years within the last 5 years: +2 points
    • ≥ 5 years within the last 7 years: +3 points
  • Language beyond the baseline:
    • German A2: +1 point
    • German B1: +2 points
    • German B2 or higher: +3 points
    • English C1 or native: +1 extra point
  • Age: ≤ 35 years: +2 points; 35–39 years: +1 point.
  • Previous legal stay in Germany: continuous ≥ 6 months in the last 5 years (study/language/work): +1 point.
  • Partner’s skilled worker potential: if your spouse/partner also meets Opportunity Card requirements: +1 point.

Remember: you still need to meet the baseline language + qualification + financial means. The points come on top.

Rights and limits of the Opportunity Card

  • Purpose: job search in Germany for qualified employment; self-employment to explore options is possible.
  • Validity: initially up to 12 months.
  • Work while searching: part-time up to 20 hours per week plus job trials up to 2 weeks per employer.
  • Extension: if you find a fitting job but no other residence title is available yet, an extension of the Opportunity Card can be granted (up to two years in total).

My step-by-step plan (what I tell clients)

  1. Choose your route. Check if your qualification can be fully recognised now (Option 1). If not, map your points (Option 2).
  2. Secure the baseline. Prove language (DE A1 or EN B2), qualification (degree or ≥ 2-year vocational training), and financial means.
  3. Collect evidence for points. Partial recognition letters, experience certificates, proof of shortage occupation, language certificates, previous stays, partner documents.
  4. Apply at the right place. If abroad, apply at the competent German mission. If already in Germany with a valid title, contact your local foreigners authority.
  5. Use your time well. Network, apply, take lawful part-time roles, and do short job trials. Move towards a qualified employment title quickly.

Quick self-check (copy this)

  • I meet the language baseline (DE A1 or EN B2).
  • I have a completed degree or ≥ 2-year vocational training recognised in my home country.
  • I can prove financial means for up to 12 months (blocked account or declaration of commitment).
  • For Option 2, I can document at least 6 points with proper evidence.
  • I understand what jobs count as “qualified employment” for the next step.

Common pitfalls that cause refusals or delays

  • Claiming points without documents: every point needs a certificate or official proof.
  • Ignoring the language baseline: DE A1 or EN B2 is mandatory even before scoring points.
  • Qualification mismatch: the role you target must fit your formal qualification when you switch to an employment title.
  • Underfunding: blocked account below the current threshold or missing declaration of commitment.
  • Waiting too long to plan the next title: use the 12 months to secure an employment-based residence title.

FAQs

How many points do I need?

At least six. Points only matter for Option 2. If your qualification is fully recognised in Germany (or obtained here), you can use Option 1 without points.

Is English enough?

Yes, for the baseline you can show English at B2. Stronger German still helps you score more points and find work faster.

Can I work while searching?

Yes. You may work part-time up to 20 hours per week and complete job trials up to two weeks per employer.

Can my spouse come with me?

Family reunion depends on the specific title and situation. If your partner also qualifies for an Opportunity Card, both of you may apply. For family reunion rules, check with the competent mission or authority for your case.

What happens after I find a job?

You switch to a residence title for qualified employment. If no other title fits yet but your job qualifies, an Opportunity Card extension can be granted.

Related legal work

I advise at the intersection of migration and employment law—recognition strategy, contracts, probation, non-compete, and remote-work terms. This joined-up approach keeps immigration, onboarding and compliance aligned from day one.

Call to action

Schedule a personal consultation. I will map your points, review your documents, and prepare a clean application so you can use your 12 months effectively.

Further reading (official)

Disclaimer: This article provides general information and does not replace individual legal advice.

EU Blue Card Germany 2025: salary thresholds, requirements, and steps

I advise companies and skilled professionals on German immigration and employment law. Below I explain the EU Blue Card in plain language. No jargon. Only what you need to act with confidence.

Why this matters in 2025

The rules are clear but exact. If you get them right at the start, your onboarding is smooth and fast. If you miss a detail, your case stalls. This guide shows the key thresholds for 2025, what to prepare, and how to avoid common delays.

2025 salary thresholds (at a glance)

  • Standard threshold: €48,300 gross per year.
  • Lower threshold: €43,759.80 gross per year for:
    • Shortage occupations (as defined by the authorities).
    • New entrants (your last degree was awarded ≤ 3 years ago).
    • IT specialists without a degree if you can prove ≥ 3 years of comparable professional experience.
    Note: When you use the lower threshold, the Federal Employment Agency (BA) usually needs to approve the employment during the visa process.

Eligibility basics (keep it simple)

  • Job offer / contract: highly qualified employment that matches your qualification, for at least 6 months.
  • Qualification: recognised university degree (anabin/ZAB). For IT specialists, proven experience (≥ 3 years) may replace a degree.
  • Regulated professions: add the professional licence or preliminary admission (e.g., in healthcare).
  • Health insurance: proof of cover (statutory or private). If you arrive before statutory cover starts, carry travel or private cover for the gap.

My step-by-step plan (what I tell clients)

  1. Role and salary. Check the correct 2025 threshold for your case. Make sure the job title and tasks fit your qualification.
  2. Recognition. Print the anabin result or obtain a ZAB Statement. For regulated professions, secure the licence steps early.
  3. BA approval (if lower threshold). Prepare for the authority’s review together with HR.
  4. Apply for the visa/residence. Use the Blue Card checklist at the competent mission (or the local authority if you are eligible to apply inside Germany).
  5. Collect the card. It is issued for your contract term plus 3 months, up to a maximum of 4 years. Extensions are possible.

Quick self-check (copy this)

  • I meet the correct salary threshold (standard or lower).
  • My contract length is at least 6 months.
  • My role clearly matches my degree or proven IT experience.
  • My documents are ready: contract, recognition (anabin/ZAB), licence if required, health insurance.
  • HR understands when BA approval is needed.

Common pitfalls that cause delays

  • Title–degree mismatch: the job title and description do not reflect the candidate’s qualification.
  • Using the lower threshold without BA coordination: the file lacks the BA approval when required.
  • Recognition gaps: no anabin printout or no ZAB statement when the database entry is unclear.
  • Insurance gap: arriving before statutory cover starts and not carrying interim cover.
  • Wrong assumptions on job changes: switching employer in the first 12 months without notifying the foreigners authority.

Validity, settlement and family

How long the Blue Card lasts

Up to 4 years. If your contract is shorter, the card is issued for the contract duration plus 3 months. You can extend it if conditions remain fulfilled.

Permanent residence (settlement permit)

You can obtain a settlement permit after 27 months if you have German at A1, or after 21 months with B1, provided the other conditions are met (employment, pension contributions, etc.).

Family members

Spouses and minor children can usually join you. For spouses of Blue Card holders, no proof of German language is required at entry. Learning German still helps with daily life and integration.

Changing employer (read this carefully)

  • Within the first 12 months: you must notify the local foreigners authority about the new job so they can check the conditions.
  • After 12 months: you may change employer without notifying the authority, provided you continue to meet Blue Card conditions.

Tip for HR: align the offer (title, tasks, salary) with the candidate’s qualification to avoid extra rounds.

FAQs

Do recent graduates qualify for the lower salary?

Yes, if your last degree is ≤ 3 years old. The lower threshold applies and BA approval is usually part of the process.

Can I qualify in IT without a university degree?

Yes, if you can prove at least 3 years of comparable professional experience and meet the lower salary threshold.

What is the minimum contract length?

Six months. Shorter offers do not qualify.

How long is the card valid?

Up to four years, or your contract term plus three months if your contract is shorter.

When can I apply for a settlement permit?

After 27 months with A1 German, or after 21 months with B1, assuming other legal criteria are met.

Do my family need German at entry?

For spouses of Blue Card holders, no language proof is required at entry. It is still sensible to learn German early.

Can I change employer freely?

Notify the authority if you change within the first 12 months. After that period, you can change without notification.

Related legal work

I advise at the intersection of migration and employment law, including contract drafting (probation, non-compete, remote work) and HR timelines. This joined-up approach keeps immigration, onboarding and compliance aligned from day one.

Schedule a personal consultation. I will check your eligibility, review your documents, and coordinate the next steps so you can start work on time.

Further reading (official sources)

Disclaimer: This article provides general information and does not replace individual legal advice.