Investor Guide
2026-10-10 08:38

Barzahlungsverbot (cash-payment ban, § 16a GwG): Cash Paid for German Property Does Not Count as Payment

The Barzahlungsverbot bars paying the price for German real estate — or for shares in companies owning it — in cash, crypto-assets, gold, platinum or gemstones, for contracts concluded since 1 April 2023. In a direct purchase it is enforced at the land register: the notary applies for registration only once non-cash payment is proven or proof was requested in vain, so undocumented payment delays the transfer of ownership.

What it is

For contracts to buy or exchange German real estate, the price can be paid only by means other than cash, crypto-assets, gold, platinum or gemstones. The same applies to acquisitions of shares in companies whose assets directly or indirectly include German real estate (§ 16a(1) sentences 1–2 GwG). A payment in a prohibited form does not discharge the debt, and the payer can reclaim it under the rules on unjust enrichment (§ 16a(1) sentences 1 and 3 GwG). The ban applies to contracts concluded on or after 1 April 2023 (§ 59(11) GwG).
For real estate purchases, the parties must prove non-cash payment to the notary who applies for the buyer's registration, for example with bank confirmations (§ 16a(2) GwG). Under § 16a(3) GwG, the notary may apply only once the proof is conclusive or after requesting it in vain. Where a suspicious-activity report is due, the notary must also wait until the fifth working day after its dispatch has passed. An unanswered request makes such a report mandatory unless facts dispel the suspicion (§§ 6(4), 7 GwGMeldV-Immobilien). The proof duty does not apply where the price does not exceed €10,000, or to the extent it is paid through the notary's escrow account (§ 16a(5) GwG).

Why it matters to investors

The payment route becomes a closing condition. Without proof, registration — and with it ownership and the role of landlord (Part 8) — waits for a request and, as a rule, a report plus five working days. Bank confirmations therefore belong in the closing plan. A notary escrow account, which removes the proof duty, requires a legitimate need for security (Part 8).
Other report triggers include prohibited means above €10,000 and payments above €20,000 before signing. So do payments above €20,000 by or to someone who is neither a party nor a beneficial owner, with exceptions such as close relatives (§ 6(1) GwGMeldV-Immobilien). Crypto-assets and precious metals must therefore become bank money, with a documented source of funds, before the purchase. From 10 July 2027 an EU-wide €10,000 cash limit for traders and service providers is added (Regulation (EU) 2024/1624); the stricter German ban continues.

What to check

• Every part of the price, including payments under side agreements, paid by bank transfer after signing.
• Payment from the buyer's own account or its lender's, not an unrelated third party's.
• Bank confirmations of each payment, ready for the notary at the due date.
• Source-of-funds documentation for the full price, prepared before signing.
Related terms: Transparenzregister · Notarielle Beurkundung · Grundbuch
Sources: GwG §§ 16a, 59(11); Geldwäschegesetzmeldepflichtverordnung-Immobilien (GwGMeldV-Immobilien) §§ 6, 7; Sanctions Enforcement Act II (BGBl. 2022 I p. 2606); Regulation (EU) 2024/1624, Art. 80; Gordon Real Estate Group, "German Prime Retail", Part 8. Legal position as of 10 October 2026.
Photo: Alex Block / Unsplash
This entry is general information and not legal or tax advice.