Dear ladies and gentlemen, dear clients, dear friends,
Have you already reported your shareholdings abroad or those of foreign investors in your company to the Bundesbank? Have you never heard of it? Then read the most important information below!
Reporting obligation according to § 64 AWV – shareholdings of residents in foreign companies
As a resident, whether you are a private individual or a company, you are obliged to report shareholdings in foreign companies to the Bundesbank. This obligation arises from § 64 of the Foreign Trade and Payments Ordinance (AWV) and is closely related to the Foreign Trade and Payments Act (AWG).
What must be reported?
What must be reported?
- Direct shareholdings: As soon as your shareholding in a foreign company amounts to 10% or more of the capital or voting rights, you are obliged to notify.
- Indirect shareholdings: Indirect shareholdings via subsidiaries or chains of shareholdings are also notifiable if the above thresholds are exceeded.
Reporting obligation according to § 65 AWV – foreigners’ shareholdings in domestic companies
Foreigners who hold shares in German companies are also subject to a reporting obligation in accordance with § 65 AWV. This serves to statistically record and safeguard Germany’s balance of payments data.
What must be reported?
- Direct shareholdings: as soon as a foreigner holds a stake of 10% or more of the capital or voting rights of a German company, this stake must be reported to the Bundesbank.
- Indirect shareholdings: Indirect shareholdings via shareholding chains must also be reported if the thresholds are reached or exceeded.
Fines for non-notification
The reporting obligations under §§ 64 and 65 AWV are laid down by law and should not be underestimated. According to § 19 section 6 and section 3 number 1 b AWG, non-notification can be penalised with severe fines. Fines of up to 30.000 euros can be imposed.
Why is compliance with these obligations so important?
In addition to avoiding fines, correct and timely reporting also contributes to the proper preparation of the German balance of payments.
What can you do?
We recommend that you regularly review your shareholdings and ensure that all reportable shareholdings are correctly recorded and reported.
If you see a need for action or advice, please do not hesitate to contact us. We will be happy to support you!
Kind regards,
