The German federal government has launched its Modernization Agenda, a reform package aimed at reducing bureaucracy, strengthening competitiveness, and accelerating digital transformation. A central element for employers and international talent is the planned Work-and-Stay Agency, which is expected to fundamentally change the way immigration procedures are handled. For businesses, this initiative could bring long-awaited relief in recruiting and retaining international professionals, though its implementation will come with challenges.
At its cabinet retreat in Berlin, the government outlined a wide-ranging program to cut bureaucratic costs by a quarter, simplify administrative processes, and create a more consistent digital infrastructure. The newly established Ministry for Digitalization and State Modernization emphasized that Germany can no longer afford fragmented structures if it wants to remain attractive in the global competition for talent.
Nowhere is this more evident than in the field of immigration. Currently, skilled migration involves a maze of authorities: over 550 local immigration offices, 200 visa sections abroad, the Federal Office for Foreign Affairs, the Federal Employment Agency, and more than 750 recognition bodies for professional qualifications. Employers and international employees alike often face long waiting times, inconsistent application of rules, and a lack of transparency.
The Work-and-Stay Agency is designed to change this. It will serve as a central, digital point of contact for all matters relating to skilled migration and training. International professionals will be able to manage recognition of qualifications, pre-approval procedures, visa issuance, and the extension or modification of residence permits through one unified platform. Instead of navigating between different authorities, they will interact with a single digital system. Employers are also expected to be given a formal role within the platform, reflecting the reality that companies already play an essential part in gathering documents and supporting their employees through the process.
The new structure is intended to provide greater speed and predictability. Each applicant will be assigned a case manager, ensuring coordination with the relevant authorities. Artificial intelligence is expected to play a role in streamlining case handling and reducing inconsistencies. If implemented as planned, this could mean shorter processing times, less duplication, and clearer communication between businesses, applicants, and the state.
The government has positioned the Work-and-Stay Agency as one of its priority “lever projects” under the Modernization Agenda. But while political momentum is strong, implementation will require legislative changes and structural reforms.
Businesses should expect a phased rollout rather than an immediate transformation. Current projections suggest that a pilot stage could be launched in late 2026, with a gradual expansion through 2027 and 2028. Full operational status, including digitalized recognition procedures and end-to-end residence title management, is more realistically expected by the end of the current legislative period in 2029.
This means that in the coming years, employers will continue to operate in a dual landscape, with traditional processes running alongside the first digital pathways. HR and mobility teams should therefore prepare for a transitional phase, adapt their processes accordingly, and stay alert to evolving compliance requirements.
We are closely monitoring the development of the Modernization Agenda and the Work-and-Stay Agency. We advise companies on the full range of immigration processes under the current legal framework, from recognition procedures and pre-approvals to visas and residence permits. We also work with employers to anticipate the impact of digital reform, prepare HR teams for the transition to new platforms, and ensure compliance throughout the process.
As Germany moves toward centralizing and digitizing skilled migration, we will continue to provide timely updates and strategic guidance. The coming years will be decisive in shaping a system that could, if effectively implemented, finally deliver the efficiency and transparency that international employers have long demanded.
For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:
Mostafa Massoud
Partner
Inga Mayer
Senior Manager
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