“Berliner Testament” and estate tax

In Germany, a “Berliner Testament” (literally, “Berlin will”) is a type of joint will that aims to provide security for both partners in a marriage, making it particularly popular among married couples. It can, however, be a suboptimal choice as far as estate tax is concerned. This type of spousal will entails each partner naming […]

Banks cancelling land charges

Banks are only allowed to cancel a land charge if certain conditions are met. With the move potentially dealing a severe blow to borrowers, they should not hesitate to consult a specialist banking lawyer. German banking law recognizes both mortgages and land charges, two types of encumbrances on real property. Despite their similarities, there is […]

Dismissal on suspicion of fraudulently recording working hours

Dismissing an employee on the basis of a strong suspicion may be justified if the individual in question is thought to have been inaccurately logging their working hours. That was the verdict of Mecklenburg–Western Pomerania’s regional labor court – the Landesarbeitsgericht (LAG) Mecklenburg-Vorpommern. Work is becoming increasingly flexible thanks to arrangements such as flextime scheduling […]

German tax investigators take aim at Airbnb – voluntary disclosure a way out

Airbnb hosts are risking trouble with the tax authorities if they fail to properly declare their rental income in their tax returns. They can respond by submitting a voluntary declaration. In the latest chapter in the fight against tax evasion, Hamburg’s tax investigation office has turned its attention towards Airbnb hosts and retrieved the booking […]

Risk analysis and compliance with German Supply Chain Act

Germany’s new Supply Chain Act – the so-called “Lieferkettensorgfaltspflichtengesetz” (LkSG) – was formally adopted on January 1, 2023. One of the key issues addressed by the legislation is the evaluation of risks both within companies and with respect to their direct suppliers. Having come into force at the beginning of the year, the Act initially […]

Unfair use of health claims in advertising

Advertisements that feature health claims can fall foul of competition law if the claims have not been reviewed and cleared by the European Food Safety Authority (EFSA). One of the functions of competition law is to protect consumers from misleading advertising, and this also applies to health-related information on foodstuffs. According to the EU’s Health […]

Post-audit tax estimates

It is a common occurrence following a company audit for the tax office to issue an estimate of additional income. But businesses on the receiving end of one of these estimates do not necessarily have to accept the outcome if it is clearly too high. Accounting records that are found in the course of a […]

Tax evasion and cryptocurrencies – immunity through voluntary disclosure

The tax authorities in the German state of North Rhine-Westphalia are increasingly targeting cryptocurrency investors for possible tax evasion. By submitting a voluntary declaration, it may still be possible for tax dodgers to avoid punishment. German weekly news magazine Der Spiegel was reporting as far back as June of this year on the North Rhine-Westphalian […]

Hamburg court gives its verdict on transferring assets tax-free in connection with gift tax

According to a ruling of Hamburg’s fiscal court – the FG Hamburg – from July 11, 2023, it is possible to transfer assets tax-free thanks to a loophole with respect to gift tax (case ref.: 3 K 188/21). The judgment has caused quite a stir, as it suggests that it is possible to avoid paying […]

Plans for modernization of German arbitration law

A paper has been released highlighting the key issues behind plans to modernize arbitration law in Germany, with the ultimate aim of bolstering the country’s reputation as a destination for settling arbitration disputes. There are a number of advantages to resolving disagreements before an arbitration panel instead of a court, particularly in the context of […]

Divorce where one spouse is not on board

Unlike when getting married, it is not necessary for both parties to say “I do” to a divorce. In fact, it may even be possible to obtain a divorce in cases where the married couple have been separated for less than three years. Unfortunately, it is not always possible for the end of a marriage […]

Koblenz court opines on impact of gift of real estate on statutory share

It is possible even for gifts made more than ten years ago to affect the claims of the other heirs following the death of the testator. Such were the circumstances of a case ruled on by Koblenz’s higher regional court – the OLG Koblenz – on April 24, 2023 (case ref.: 12 U 602/22). As […]

Will invalid due to lack of testamentary capacity

One of the prerequisites for a will to be valid is that the testator must have been capable of preparing the will in the first place, which is all the more reason to start thinking about drafting one in good time before this is no longer an option. In Germany, the rules of intestate succession […]

Employer ordered to pay compensation for violating GDPR

Data protection is relevant not only to a business’s customers but also its employees, a fact that employers ought to bear in mind given how costly violations of the General Data Protection Regulation can be for them. The implementation of the GDPR has placed greater demands on businesses with respect to data protection. It is […]

Applying for trademark protection

Registering a trademark makes it illegal for third parties to make unauthorized use of the mark. Its proprietor is thus able to protect themselves against copycats and freeloaders and to enforce their rights. While there is no obligation under trademark law to file an application, it is definitely a good idea as it is the […]

Window closing soon for claiming compensation from Wirecard

Wirecard AG shareholders’ claims for compensation against the now-bankrupt company are set to expire at the end of 2023. Anyone interested in joining the model case proceedings against Wirecard must register their interest by mid-September. The whistle was blown on the Wirecard scandal back in the spring of 2020 when it became known that around […]

Rent reduction in commercial tenancy law

A more than ten percent deviation in the actual size of the rental space from the size cited in the commercial tenancy agreement may justify a reduction in rent, according to Germany’s Federal Supreme Court (BGH). Rent reduction is possible under German commercial tenancy law if the actual size of the commercial space is smaller […]

Project Immobilien Group bankruptcies hit buyers

Companies belonging to the Project Immobilien Group have gone bankrupt. Some of those who bought properties have already paid large down payments and are anxious given the difficult situation. Many building projects have yet to be completed, and yet companies affiliated with the Project Immobilien Group have filed for bankruptcy. The buyers, some of whom […]

Letters of credit in international trade law

Letters of credit (LCs) allow businesses to protect themselves against the possibility of payment delays or defaults in the context of international trade relations. When it comes to international transactions, businesses have to contend with a number of risks, such as payment delays, non-payment, and supply difficulties. One way of ensuring against these sorts of […]

Copyrights in connection with expert technical opinions

For an expert technical opinion to be eligible for copyright protection, it needs to comply with strict requirements. That was the finding of Düsseldorf’s regional court – the Landgericht (LG) Düsseldorf – in a ruling from February 9, 2022 (case ref.: 12 O 114/21). Section 2(1) no. 7 of the German Copyright Act (UrhG) stipulates […]