On 1 January 2005, a new immigration law came into effect that altered the legal method of immigration to Germany. The political background to the introduction of the new immigration law being, that Germany for the first time ever acknowledged to be an "immigration country". Although the practical changes to the immigration procedures were relatively minor, new immigration categories like the ones for highly skilled professionals and scientist have been introduced to attract valuable professionals for the German labour market. The development within German immigration law clearly shows that immigration of skilled employees and academics is eased while the labour market remains closed for unskilled workers.

Demographics
In 2007, 91.2% (75.0 million) of residents in Germany had German citizenship. Of the remaining 8.8% (7.2 million), 1.7 million (2.1%) had Turkish, 0.5 million (0.6%) Italian and 0.4 million (0.5%) Polish citizenship.

History of immigration to Germany
One of the biggest immigration waves to Germany started in the 1960s. Due to a shortage of laborers during the Wirtschaftswunder ("economic miracle") in the 1950s and 1960s, the Western-German government signed bilateral recruitment agreements with Italy in 1955, Greece in 1960, Turkey in 1961, Morocco in 1963, Portugal in 1964, Tunesia in 1965 and Yugoslavia in 1968. These agreements allowed the recruitment of so called Gastarbeiter to work in the industrial sector for jobs that required few qualifications. Those Gastarbeiter were allowed to work in Germany for a period of one or two years and were supposed to return to their home countries after that, however many did not want to return and stayed in Germany for good. Children born to Gastarbeiter received the right to reside in Germany but were not granted citizenship; this was known as the "Aufenthaltsberechtigung" ("right to reside"). Many of the descendants of those Gastarbeiter still live in Germany and many picked up German citizenship.

The GDR also recruited Gastarbeiter, who mostly came from Vietnam, North Korea, Angola, Mozambique and Cuba. Following the fall of the Berlin Wall and German reunification in 1990, the population of guest-workers still remaining in the former East Germany faced deportation, premature discontinuation of residence and work permits as well as open discrimination in the workplace.

Immigration regulations

EU citizens
European Union free movement of workers principles require that all Member State citizens have the right to solicit and obtain work in Germany free from discrimination on the basis of citizenship. Treaty on European Union Article 39 (providing basic rules for Freedom of movement for workers). However, citizens of the new EU member states (Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia, Slovenia, Bulgaria, and Romania) are exempt from the free movement of workers principle for a transition period.

Immigration Options for Non-EU Citizens
Immigration to Germany as a non-EU-citizen is still limited to skilled workers (individuals with either a university or polytechnic degree or at least 3 years of training together with job experience), students and their immediate family members. Germany knows 3 types of immigration titles: Visa (validity of up to 90 days), residence permit and settlement permit. Work permits – if granted – are no longer issued independently but included within the immigration title and are available for foreigners that either fall into one of the several available permit categories (IT specialists, company trained specialist within a group of companies, managing personnel, scientists, highly skilled workers with exceptional income, etc.) or can prove a public interest in the employment. The categories and all requirements are listed in the ordinance on employment.

The formerly well known IT-Greencard program has been followed by the introduction of a specific category within the ordinance on employment that allows IT specialists with a university or polytechnic degree to migrate to Germany for employment purposes. Self employment is also possible but requires either an initial investment of EUR 500,000 and the creation of a minimum 5 jobs or the support of the local chambers of commerce or similar organizations that confirm the socioeconomic value of the business plan for the region.

As Germany does not allow immigration without cause, it is necessary to be either enrolled with a school or university, have a specific job offer that fits the requirements of one of the work permit categories or intend to reunify with close family (spouse or minors) already within Germany (family reunification visa).

Since fall 2007, Germany requires spouses of eligible applicants to pass the "A1" levels German language exam before a visa is issued to them. Exceptions exist for individuals holding a nationality that is exempt from the visa requirement (visa waiver program), that hold a university or polytechnic degree, individuals who are handicapped to learn a language or will only stay a short period in Germany due to a time limitation in the category of the residence permit.

Foreign students can stay for one year after obtaining a university degree in order to find a job matching their qualifications.

Plans are discussed to open the labour market in 2009 for all foreigners holding a university degree that have a specific job offer as well as for all graduates of German schools (including those located abroad).

Any person married to a German person may immigrate to Germany.

Business visa
Business visas are available for 90 days within every 6 months. Although it is possible to act as managing director, teacher, university scientist, sportsperson, actor, model or journalist on the basis of a business visa, businesspersons may only attend contract negotiations and buy or sell goods for an employer abroad. All other economic activity is considered work and must not be performed on the basis of a business visa.