Immigration

Germany | The new coalition agreement and its impact on skilled immigration

Summary

On April 10, 2025, Germany formed a new government, with the coalition agreement outlining a focus on attracting skilled migration while simultaneously emphasizing a more regulated and secure immigration framework.

The detail

Germany’s newly formed coalition government between the CDU, CSU and SPD has released its coalition agreement for the 21st legislative period. The agreement outlines a clear focus on positioning Germany as an attractive destination for skilled migration while simultaneously emphasizing a more regulated and secure immigration framework. Currently, Germany faces a projected shortfall of over 7 million skilled workers by 2035. In 2023 alone, nearly 1.9 million job vacancies were reported, with acute shortages in engineering, healthcare, IT, and skilled trades. At the same time, only around 40,000 individuals entered Germany via the skilled worker route in 2022—well below the level needed to sustain economic growth. These figures underscore the urgency behind the coalition’s measures to simplify immigration processes, speed up recognition procedures, and improve long-term retention of foreign talent.

What the coalition agreement says about skilled migration

1. Recognition of economic need: The coalition openly acknowledges the acute shortage of skilled labor in Germany, particularly in eastern regions. It sees international skilled migration as essential for maintaining economic stability and competitiveness.
2. Work-and-Stay Agency: A central digital immigration portal, referred to as the “Work-and-Stay Agency,” will be established. It will act as a one-stop shop for foreign professionals, bundling all administrative processes including residence, labor market access, and recognition of qualifications.
3. Qualification recognition within 8 weeks: The agreement promises that foreign vocational and academic qualifications will be recognized within eight weeks. To achieve this, a task force involving federal and state governments will be formed, and the Central Office for Foreign Education (ZAB) will receive additional support.
4. Retention of graduates from third countries: Foreign nationals who complete vocational training or academic programs in Germany will be allowed to stay permanently and enter the German labor market without further bureaucratic hurdles.
5. Strengthened language and integration programs: Occupational language courses will be expanded and secured long-term. A focus will be placed on combining language learning with work experience and upskilling programs.
6. Streamlined access for refugees and tolerated persons: Employment bans for asylum seekers will be reduced to a maximum of three months, with some exceptions. The coalition promotes early labor market integration for those with prospects to stay.
7. Regulated access through quotas and agreements:
   • The Western Balkans Regulation will be capped at 25,000 persons annually.
   • New bilateral migration agreements will be concluded with key countries of origin to promote legal pathways while improving return and reintegration cooperation.
8. Dual strategy—Incentivize legal pathways, strengthen controls: While simplifying legal migration, the coalition emphasizes increased control mechanisms, including stricter border controls and efforts to combat misuse in labor migration.
9. Expected changes in citizenship law: The coalition agreement announces the abolishment of the current fast-track naturalization option after three years of residence (“Turbo Naturalization”). However, it reaffirms its commitment to the ongoing reform of German citizenship law. This includes support for shorter residence requirements (5 years general, 3 years in exceptional cases), the introduction of dual or multiple citizenship as a general rule, and automatic citizenship for children born in Germany to parents legally residing in the country for at least five years.

Challenges and opportunities for businesses

• Opportunity—Workforce planning: The faster recognition of qualifications and streamlined immigration processes will enable businesses to recruit and onboard skilled professionals more efficiently.
• Challenge—Navigating new procedures: Companies will need to adapt to new procedures introduced through the Work-and-Stay Agency and maintain awareness of the changing administrative landscape.
• Opportunity—Employee Retention: Retaining international graduates from German institutions offers a long-term solution to skill shortages and should be integrated into HR strategies.
• Challenge—Coordinating with multiple authorities: While centralization is promised, interim phases may require continued engagement with local authorities and recognition bodies.
• Opportunity—Citizenship as retention strategy: The expected changes to citizenship law, including shorter residency requirements and allowance of dual citizenship, offer businesses an additional incentive to attract and retain international talent.

How we can help

We recommend monitoring legislative developments and preparing for potential regulatory shifts. Vialto will continue to provide updates and guidance on corporate immigration strategy under the new government and new laws.

In addition, we are available as your point of contact to clarify open questions and develop tailored solutions. Feel free to contact us to learn more about how we can support you in navigating skilled immigration effectively.

Contact us

For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:

Mostafa Massoud
Partner

Eva Witt
Manager

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