Commercial Evictions in Saxony: A Landlord's Guide

Evicting a commercial tenant in Saxony is a fundamentally different process than evicting a residential tenant. 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.

Disclaimer: This guide provides general legal information for educational purposes only and does not constitute legal advice. Always consult a licensed attorney in Saxony for advice specific to your situation. Information last verified: March 2026.

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), the statutory notice period for commercial properties is six months, effective at the end of a calendar quarter.

• The Deadline: The termination notice must be received by the tenant no later than the third working day of a calendar quarter (e.g., January 3rd, April 3rd).
• The End Date: The lease will then terminate at the end of the next calendar quarter (e.g., notice received Jan 3rd means lease ends June 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):
   • The tenant is in default for two consecutive months' rent (or a significant portion thereof).
   • The tenant is in default over a longer period, and the total missing amount equals two full 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. In commercial law, if a tenant hits the two-month 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).

• If this clause is in the contract (and notarized), 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. This saves months of time and thousands of Euros in legal fees.

Step 3: The Eviction Lawsuit (Räumungsklage)

If the lease lacks the notarial submission clause, the landlord must file a formal eviction lawsuit at the Regional Court (Landgericht) if the annual rent exceeds €5,000.

• 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: Having the tenant submit to immediate execution for eviction and payment claims 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 two-month threshold. 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 Can Help

Waiting 12 months for a court-ordered eviction while a commercial tenant pays zero rent can be financially devastating. Landager provides commercial landlords in Saxony with automated rent tracking that instantly alerts you when the two-month arrears threshold is breached, enabling you to swiftly issue legally sound immediate termination notices before the tenant can react.

Back to Saxony Commercial Tenancy Law Overview.