How to set up a German property‑holding GmbH in 2026: notary steps, minimum capital, Handelsregister filing and tax pitfalls for foreign owners

What a GmbH is and the minimum capital rule

A Gesellschaft mit beschränkter Haftung (GmbH) is the standard German private limited company and is commonly used to hold property. German law sets a mandatory minimum share capital (Stammkapital). Section 5 of the GmbH Act (GmbHG) requires a minimum Stammkapital of €25.000. The statute is the primary legal authority for capital rules and for the distinction between a full GmbH and the lighter Unternehmergesellschaft (UG) form. ([gesetze-im-internet.de](https://www.gesetze-im-internet.de/gmbhg/__5.html?utm_source=openai))

If you plan a property‑holding GmbH, the usual practice is to set the Stammkapital at least at the statutory minimum and to document how much of that capital is paid in cash on formation; the notary will check and record this during the formation (see next section). Do not assume bank or tax authorities will accept lower practical capitalisation without formal UG or other structures being used; the law’s €25.000 threshold is explicit. ([gesetze-im-internet.de](https://www.gesetze-im-internet.de/gmbhg/__5.html?utm_source=openai))

Notary steps: what the notary will do and what you must bring

German law requires formation of a GmbH to be notarised. The notary (Notar) prepares and certifies the articles of association (Gesellschaftsvertrag), checks identity and powers‑of‑attorney, records the capital commitments, and arranges the signatures needed for banking and registration. A physical appearance used to be mandatory, but since the German implementation of the EU digital‑legal rules notarial online procedures for GmbH formation (including video conferences and electronic submission) are available; the notary still performs the legal checks and submits the registration documents to the court register electronically. Plan for the notary to request certified IDs, proof of wire‑in for paid‑in capital, and, when relevant, notarised powers‑of‑attorney with apostille and translation. ([onlinehilfe.bnotk.de](https://onlinehilfe.bnotk.de/einrichtungen/notarnet/xnotar/einstiegshilfen/alle-schritte-einer-registeranmeldung-auf-einen-blick.html?utm_source=openai))

Practical points: ask the notary in advance whether they use the Bundesnotarkammer’s XNotar/online system (it speeds Handelsregister submission), what evidence of capital payment the bank will accept, and whether any foreign documents require legalisation or certified translation. Fees for notarial work are statutory and usually scale with capital and document complexity; request an itemised cost estimate before booking the appointment. ([onlinehilfe.bnotk.de](https://onlinehilfe.bnotk.de/einrichtungen/notarnet/xnotar/einstiegshilfen/alle-schritte-einer-registeranmeldung-auf-einen-blick.html?utm_source=openai))

Handelsregister filing and the public record

After notarisation the notary typically transmits the registration application to the competent local court’s Handelsregister (commercial register). The notary’s electronic filing includes the articles, list of shareholders, managing director(s) and proof of capital where required; the court issues the official entry and a register‑number. Once entered, the GmbH exists as a legal person and may acquire property, subject to other formalities (land register/Grundbuch). The Bundesnotarkammer provides a step‑by‑step view of the register filing process and the notary’s role in preparing and submitting the data. ([onlinehilfe.bnotk.de](https://onlinehilfe.bnotk.de/einrichtungen/notarnet/xnotar/einstiegshilfen/alle-schritte-einer-registeranmeldung-auf-einen-blick.html?utm_source=openai))

Allow time: registration is not instantaneous — the court must examine documents, and further information can be requested. Only after Handelsregister entry should you expect to sign purchase contracts in the company’s name and register property at the Grundbuchamt. ([onlinehilfe.bnotk.de](https://onlinehilfe.bnotk.de/einrichtungen/notarnet/xnotar/einstiegshilfen/alle-schritte-einer-registeranmeldung-auf-einen-blick.html?utm_source=openai))

Key tax points to check (high‑risk items for foreign owners)

Corporate tax: a GmbH’s taxable profits are subject to German corporate income tax (Körperschaftsteuer) at 15 % plus the solidarity surcharge (Solidaritätszuschlag), which is 5,5 % of the corporate tax amount (i.e. an additional 0,825 percentage points on top of 15 %). Consult the Federal Ministry of Finance explanation for the statutory rates. ([bundesfinanzministerium.de](https://www.bundesfinanzministerium.de/Content/DE/Glossareintraege/K/koerperschaftsteuer.html?view=renderHelp&utm_source=openai))

Gewerbesteuer (trade tax): trade tax is charged by municipalities and varies considerably because each municipality sets its Hebesatz. The municipal Hebesatz is applied to the statutory tax base; this produces substantial local differences in total tax burden. For how municipal Hebesätze and the computation affect overall burden see the Bundestag research note. Foreign owners often underestimate the impact of Gewerbesteuer on net rental income or on property trading activities. ([bundestag.de](https://www.bundestag.de/resource/blob/554394/909c420261daedfa9527b5b7b1078778/WD-4-065-18-pdf-data.pdf?utm_source=openai))

What to check with your tax adviser before you form a GmbH: whether your planned activity (long‑term letting, short‑term letting, property development, property management services) creates Gewerbesteuerablegation; how distributions to foreign shareholders will be taxed and whether double‑taxation treaties reduce withholding; and whether the transparency/beneficial‑owner disclosures required in Germany will apply to your ownership chain. These points require a Steuerberater or Rechtsanwalt because local Hebesätze and factual business models determine the outcome. Do not rely on internet articles for these calculations: get a written opinion. ([bundestag.de](https://www.bundestag.de/resource/blob/554394/909c420261daedfa9527b5b7b1078778/WD-4-065-18-pdf-data.pdf?utm_source=openai))