The German federal government is planning to reform the German Associations Act (Vereinsgesetz). The focus is not on the general law governing associations under the German Civil Code (BGB), but rather on the public law provisions of the German Associations Act. In particular, the proposed Third Act Amending the German Associations Act would establish a more comprehensive statutory framework for the register of foreigners’ associations.
Registration, notification, and information obligations that are currently set out primarily in the regulation implementing the German Associations Act would largely be incorporated into the German Associations Act itself, with certain additional requirements. The aim is to improve the completeness and accuracy of the register of foreigners’ associations maintained by the Federal Office of Administration while also creating a sound legal basis for the processing of personal data.
The bill is still moving through the legislative process. Following the Bundesrat’s opinion of June 12, 2026, and the federal government’s response, it received its first reading in the German Bundestag on July 9, 2026, and was referred to the relevant parliamentary committees for further consideration. As a result, the proposed legislation may still change, although the practical direction of the reform is already becoming clear.
BGB association and association under the German Associations Act: What is the difference?
When people think of an association, they often first think of the registered association (e.V.) under the German Civil Code – the traditional legal form of an association in Germany. The BGB primarily regulates the association’s civil law structure, including legal capacity, articles of association, membership, governing bodies, representation, and registration in the register of associations. The civil register of associations serves legal transactions and is generally open to public inspection.
By contrast, the German Associations Act uses its own and significantly broader definition of an association. Under the German Associations Act, an association is any organization, regardless of its legal form, in which a majority of natural or legal persons have voluntarily joined together for an extended period for a common purpose and are subject to an organized process of forming a collective will. Therefore, an organization may fall within the scope of the German Associations Act even if it is not a registered association under the BGB. Conversely, a registered charitable association will generally also qualify as an association within the meaning of the German Associations Act.
Therefore, the planned obligations do not depend solely on whether an organization has the legal form of an e.V., but rather on whether the organization falls within the broad definition of an association under the German Associations Act and additionally meets the requirements of a foreigners’ association or a foreign association.
What is a foreigners’ association under the German Associations Act?
Under Section 14(1), sentence 1 of the German Associations Act, a foreigners’ association (Ausländerverein) is an association whose members or leaders are entirely or predominantly foreigners. Nationals of a member state of the European Union are not considered foreigners for this purpose. Associations whose members or leaders are entirely or predominantly EU nationals therefore do not qualify as foreigners’ associations.
Accordingly, a charitable association with predominantly German and French members would generally not be considered a foreigners’ association. The situation may be different if the members or governing bodies consist predominantly of nationals from non-EU countries. In such cases, it should be examined whether the association falls within the special provisions applicable to foreigners’ associations under the German Associations Act.
What obligations currently apply to foreigners’ associations?
Even under the current law, foreigners’ associations are subject to specific registration, notification, and information obligations. The draft legislation essentially transfers these obligations from the regulation implementing the German Associations Act into the German Associations Act itself. Accordingly, foreigners’ associations with their registered office within the scope of application of the German Associations Act must be registered with the competent authority within two weeks of their establishment. The registration must include, in particular, the articles of association or – if no articles of association exist – information on the name, registered office, and purpose of the association, details of board members or other persons authorized to represent the association, as well as information on affiliated organizations abroad.
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Upon request by the competent authority, foreigners’ associations must also provide information about their activities. In the case of politically active foreigners’ associations, additional information must be provided regarding the names and addresses of members as well as the origin and use of funds. The current legal framework therefore does not provide for a general, unconditional disclosure of all funding flows of every foreigners’ association.
Foreign associations with their registered office abroad may also be affected. However, this does not apply to every activity that merely has a connection to Germany. Rather, the decisive factor is whether the foreign association establishes or maintains organizational facilities within the scope of application of the German Associations Act. In such cases, the registration and information obligations apply accordingly.
What changes are expected under the reform of the German Associations Act?
The draft legislation provides for the introduction of a new section into the German Associations Act containing special obligations for foreigners’ associations and foreign associations, as well as provisions on the register of foreigners’ associations.
In particular, the draft introduces a disclosure obligation for certain sources of funding. Foreigners’ associations would be required to provide information if they receive membership fees, donations, or other contributions directly or indirectly from non-EU/non-EEA countries or organizations affiliated with such countries, where the individual contribution or the total amount received from the same donor within one calendar year amounts to at least EUR 10,000. The information to be disclosed would include, among other things, the specific amount received, the name and address of the person providing or arranging the contribution, as well as general information on how the contribution is used. According to the explanatory memorandum to the draft legislation, non-EU/non-EEA countries are countries outside the European Union and outside the European Economic Area.
During the legislative process, the Bundesrat has raised practical concerns regarding enforcement. In particular, it points out that the identification and registration of foreigners’ associations and foreign associations will continue to depend to a significant extent on their cooperation, and that the competent authorities often do not even have knowledge of the existence of such associations. The Bundesrat also sees practical difficulties with the new disclosure obligation, as particularly sensitive sources of funding may not be fully disclosed. Nevertheless, the federal government considers the proposed regulation suitable for reducing existing enforcement deficiencies.
Higher administrative fines planned under the German Associations Act
The draft legislation provides for significantly higher administrative fines. Violations of the new disclosure obligation may be subject to an administrative fine of up to EUR 50,000. Violations of registration, information, or notification obligations may in the future be subject to an administrative fine of up to EUR 20,000. This would substantially increase the sanctions available compared with the current legal framework.
Practical advice for organizations with international connections
The planned reform of the German Associations Act will not affect every charitable association, but it is also not limited exclusively to associations. For organizations with a membership structure or leadership bodies consisting predominantly of nationals from non-EU countries, as well as for foreign associations with organizational facilities in Germany, the reform may have significant practical implications. Since the draft legislation is still undergoing the parliamentary process following its first reading, changes remain possible. Organizations that may be affected should monitor further developments while already reviewing their classification under the German Associations Act.
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