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      On 30 January 2026, the European Commission (the “Commission”) announced that it has initiated an infringement procedure against Germany by sending a formal letter of notice.1 The action concerns Germany’s requirement that non-EU nationals, who already legally reside and work in another EU member state, must apply for an additional visa before undertaking short-term assignments in Germany.  

      The Commission views the German requirement as contrary to the EU principles of free movement of workers and the freedom to provide services. The Commission has requested that Germany remove the requirement for additional visas and allow free movement for up to 90 days for non-EU workers who have already been vetted in another member state.

      WHY THIS MATTERS

      This case is vital for businesses operating across the EU, as it directly affects their ability to deploy non-EU nationals to Germany who are legally residing and working in an EU member state.

      Unnecessary visa requirements create administrative burdens, increase costs, and cause delays for companies seeking to post these employees for short-term assignments in Germany.

      Employers should monitor regulatory developments closely, review assignment planning, and be prepared to update compliance processes as rules evolve. Staying informed and engaging with advisors will help organizations lessen disruption and identify opportunities as the regulatory landscape changes.

      By defending the principle of free movement, the Commission’s action helps ensure that businesses can respond quickly to client needs, access specialized skills, and remain competitive in the European market. Resolving this issue would promote legal certainty, reduce red tape, and support a level playing field—empowering companies to grow, innovate, and contribute to the EU economy without facing unjustified barriers.

      Detailed Description of the Controversy

      The European Commission has formally requested that Germany comply with EU rules governing the free movement of services and legally resident third-country nationals. Under Article 56 of the Treaty on the Functioning of the EU (TFEU)2 and Article 21 of the 1990 Convention implementing the Schengen Agreement (CISA),3 service providers are permitted to post non-EU nationals—who are lawfully staying and employed in one EU member state—to another EU member state for up to 90 days in any 180-day period, without requiring an additional visa.

      A key principle underpinning this is the so-called “Vander Elst” visa, named after a landmark Court of Justice of the European Union (CJEU) decision.4 The Vander Elst ruling established that non-EU nationals legally residing and working in one EU member state can be posted for a short period of time to another member state to provide services without having to obtain an additional visa, provided they already hold a valid residence permit.

      Despite these rules, Germany requires non-EU nationals who already hold a residence permit or long-stay visa from another EU country to apply for an extra visa before being posted to Germany for short-term assignments. The Commission argues that this measure imposes an unjustified restriction on the freedom to provide services, creating unnecessary administrative burdens and delays for companies and workers.

      Next Steps

      The letter of formal notice gives Germany two months to respond and resolve the issue. If Germany does not comply, the Commission may escalate the procedure by issuing a reasoned opinion, which could lead to legal proceedings before the CJEU.

      This case underscores the ongoing challenge of balancing national immigration controls with EU-wide mobility rights. Its resolution will have significant implications for cross-border service provision and the rights of posted workers throughout the EU

      KPMG INSIGHTS

      The Commission’s infringement procedure against Germany highlights the ongoing challenges in harmonizing mobility rules across the EU. Germany’s requirement for non-EU nationals—already legally residing and working in another member state—to obtain an additional visa for short-term assignments creates administrative barriers and may discourage cross-border business activities.

      The Commission’s stance reinforces the importance of upholding the principles of free movement of workers and the freedom to provide services within the EU.

      If Germany aligns its rules with EU guidance, non-EU nationals vetted in one member state could undertake short-term assignments in Germany without further visa requirements, facilitating greater workforce mobility and operational flexibility for multinational organizations.

      What Should Employers Do?

      Given the Commission’s recent action, employers with cross-border operations in the EU should take proactive steps to prepare for potential changes to Germany’s visa requirements:

      • Monitor Regulatory Developments: Stay informed about the progress of the infringement procedure and any announcements from German authorities regarding changes to short-term assignment rules for non-EU nationals.

      • Review Assignment Planning: Assess current and upcoming assignments involving non-EU employees who may need to work in Germany. Consider the potential impact of regulatory changes on assignment timelines and costs.

      • Update Compliance Processes: Be prepared to adjust internal processes and documentation requirements if Germany removes the additional visa requirement, to maintain ongoing compliance with EU mobility rules.

      • Communicate with Stakeholders: Keep HR, mobility teams, and affected employees informed about developments and potential changes to assignment procedures.

      • Consult with Advisors: Engage with immigration and mobility advisors to understand the implications for your organization and prepare for any regulatory updates.

      By taking these steps, employers can position themselves to respond quickly to regulatory changes, minimize disruption, and continue to support the mobility of their international workforce.

      1.     European Commission, January infringements package: key decisions, 30 January 2026.

      2.     On the EUR-Lex website: Consolidated version of the Treaty on the Functioning of the European Union, Chapter 3, Article 56, 9 May 2008.

      3.     On the EUR-Lex website: The Schengen acquis – Convention implementing the Schengen Agreement, 22 September 2000.

      4.     Court of Justice of the European Union: Case C-43/93 Vander Elst v. Office des migrations internationals, 9 August 1994, on the InfoCuria website. 

      Contacts

      Daida Hadzic
      Daida Hadzic

      Director, Washington National Tax – Global Mobility Services

      KPMG in the U.S.

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