Commercial Eviction in Saxony: Process & Rules

Evicting a commercial tenant in Saxony is a fundamentally different process than evicting a residential tenant. Governed by the German Civil Code (BGB), which came into effect on 1 January 1900, commercial landlords benefit from significantly looser regulations: they do not need a "legitimate interest" (like personal use) to end an indefinite lease, and commercial tenants have fewer avenues to block or delay an eviction for severe breaches of contract.

1. Ordinary Termination (Ordentliche Kündigung)

If a commercial lease is indefinite (meaning it has no fixed end date and runs month-to-month or year-to-year), either party can terminate it using an ordinary termination.

The Statutory Notice Period

Under German law (BGB § 580a Abs. 2), the statutory notice period for commercial properties (Geschäftsräume) requires notice by the third working day of a calendar quarter to be effective at the end of the next calendar quarter, meaning an effective notice period of nearly six to nine months.

• The Deadline: The termination notice must be received by the tenant no later than the third working day of a calendar quarter.
• Working Days: Saturdays are considered working days unless they fall on a public holiday. Because January 1st is a public holiday in Germany, the third working day of the first quarter typically falls on January 4th or 5th, depending on the calendar year.
• The End Date: The lease will then terminate at the end of the next calendar quarter (e.g., valid notice received by the April deadline means the lease ends September 30th).

Note: Because commercial leases operate under freedom of contract, landlords and tenants can negotiate longer or shorter notice periods in the lease agreement, or tie them to different dates.

Fixed-Term Leases

The vast majority of commercial leases in Saxony are for a fixed term (e.g., 3, 5, or 10 years).

Crucial Rule: During a fixed term, an ordinary termination is generally excluded. Neither the landlord nor the tenant can simply give six months' notice to leave. The contract ends automatically on the agreed date unless both parties sign a mutual termination agreement (Aufhebungsvertrag), or the contract contains specific "break options" (Sonderkündigungsrechte).

2. Immediate Termination Without Notice (Fristlose Kündigung)

Regardless of whether a lease is fixed or indefinite, a landlord can terminate it immediately (without the six-month notice) if the tenant commits a severe breach of contract, providing an "important reason" (wichtiger Grund) under BGB § 543.

Grounds for Immediate Eviction

1. Severe Rent Arrears (Most Common): Under BGB § 543 Abs. 2 Nr. 3, a landlord may terminate if:

• The tenant is in default of payment for two consecutive dates (or a significant portion thereof).
• The tenant has accumulated arrears totaling at least two months' rent.

2. Unauthorized Subletting: Subleasing the commercial space without the landlord's mandatory prior consent.
3. Endangerment of the Property: Severe neglect or destruction of the premises.
4. Unapproved Change of Use: Using the space for a completely different commercial purpose than agreed (e.g., operating a loud nightclub instead of a quiet retail store).

No "Grace Period" Payment Loophole

This is the most significant advantage for commercial landlords: Commercial tenants do not have the statutory right to a "grace period payment" (Schonfristzahlung).

In residential law, a tenant can invalidate an immediate eviction by paying all arrears within two months of an eviction lawsuit (§ 569 Abs. 3 Nr. 2 BGB). In commercial law, this protection does not apply (BGH XII ZR 146/14). If a tenant hits the arrears threshold and the landlord serves a valid immediate termination, the termination remains valid even if the tenant pays the debt the very next day. The landlord can accept the late money but still enforce the eviction.

The Formal Eviction Process

If the tenant refuses to hand over the keys after a valid termination, the landlord must follow the legal eviction process.

Step 1: Formal Written Notice

The termination must be delivered in writing, typically via registered mail or courier, to prove the exact date of receipt. It must clearly state the reasons if it is an immediate termination for cause.

Step 2: The Notarial Submission to Execution

A standard, highly recommended clause in German commercial leases is the Notarial Submission to Execution (Zwangsvollstreckungsunterwerfung).

• To be legally effective, the tenant must submit to immediate execution in a notarially recorded deed (notariell beurkundete Urkunde) pursuant to § 794 Abs. 1 Nr. 5 ZPO.
• A mere notarization of the signature (Beglaubigung) is insufficient to create an enforceable title for eviction.
• If this deed exists, the landlord does not need to file an eviction lawsuit or wait months for a court trial. The landlord obtains an enforcement title directly from the notary and can immediately hire a bailiff (Gerichtsvollzieher) to physically evict the tenant.

Step 3: The Eviction Lawsuit (Räumungsklage)

If the lease lacks a notarially recorded submission to execution, the landlord must file a formal eviction lawsuit. Jurisdiction depends on the amount in dispute (Streitwert), which for evictions is calculated as 12 months of the net cold rent (§ 41 Abs. 1, 2 GKG):

• Local Court (Amtsgericht): If the Streitwert is €5,000.00 or less (pursuant to § 23 GVG).

• Regional Court (Landgericht): If the Streitwert exceeds €5,000.00 (pursuant to § 71 GVG).

• The landlord must advance court costs.

• The process until a judgment is reached typically takes 6 to 12 months.

• Once a judgment is obtained, the bailiff executes the physical eviction.

Best Practices for Landlords in Saxony

1. Always Use the Notarial Submission Clause: Ensure the tenant submits to immediate execution in a notarially recorded deed. This is the single most important protection a commercial landlord can negotiate.
2. Monitor Arrears Aggressively: Act exactly on the day a commercial tenant hits the threshold defined in BGB § 543. Issue the immediate termination notice before they have a chance to make a partial payment to dip below the threshold.
3. Warn Before Terminating: Except in cases of severe rent arrears, you must issue a formal warning (Abmahnung) demanding the tenant cease their breach of contract (e.g., unauthorized subletting) before you can immediately terminate the lease.

How Landager Helps

Landager tracks lease terms, local rent cap compliance, and maintenance requests - making it easy to stay compliant with Saxony regulations.

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