Yep, that's something that gets overlooked. The Nazis were the government, everything they did was literally legal. The Third Reich was a flurry of legal activity. The Jews were technically outlaws, in that environment. Illegal immigrants, I think was the status (they had been stripped of their citizenships).
I recall reading how they were using US [
anti-miscegenation laws] as a startingpoint during the [
Wannsee] discussions. They couldn't adopt the American [
One Drop Rule], or Hitler would be off to the death camps, so they hummed and hawed about how far back in ancestry made a person a 'legal' noncitizen.
Just as an example, after [
Kristallnacht], the Gestapo learned that some insurers were going to honour their vandalism policies. A new law was whipped up within hours to make it illegal to pay out claims to Jews. All those payments were to be redirected to the Reich.