Administrative offences and fine proceedings in Germany – Lawyer Frankfurt

Administrative offences and fine proceedings in Germany – defence in Frankfurt and nationwide

Many people are surprised at how serious an administrative fine proceeding in Germany can be. Although administrative offences (Ordnungswidrigkeiten) are not criminal offences in the strict sense, but are classified as “regulatory” or “administrative wrongdoing”, they can still lead to high fines, driving bans, entries in registers relevant for business and trade, and – especially in tax and corporate matters – significant financial and reputational damage.

Particularly in the fields of white-collar and tax criminal law, administrative offences are often closely connected with criminal allegations. A regulatory fine proceeding may run in parallel with a criminal investigation or may even be a precursor to it. Careful coordination of the defence strategy is therefore essential.

Based in Frankfurt am Main, the law firm Buchert Jacob Peter defends private individuals, managing directors, senior employees, entrepreneurs, professionals and other individuals in administrative fine proceedings and criminal cases throughout Germany. Our English-speaking criminal defence lawyers in Frankfurt advise and represent clients from the first contact with the authorities through to court hearings and appeals, including complex nationwide proceedings.

For further orientation on key legal concepts in German criminal law and procedure, our firm also provides an English legal dictionary, for example on topics such as criminal offences and criminal procedure and the role of the criminal defence lawyer.

Concept of an administrative offence and distinction from a criminal offence

Under section 1 (1) of the German Administrative Offences Act (Gesetz über Ordnungswidrigkeiten – OWiG), an administrative offence is an unlawful and reproachable act which does not reach the degree of wrongfulness of a criminal offence, but is nevertheless regarded as requiring a sanction. The sanction is a regulatory fine (Geldbuße), not a criminal penalty such as a fine in the criminal sense or imprisonment.

In administrative offence law the person affected is described as the “person concerned” (Betroffene), and the authority issues a “notice of administrative fine” (Bußgeldbescheid). In practice, however, the consequences can be very similar to those in criminal proceedings: substantial financial sanctions, confiscation of assets and serious professional or business consequences. In traffic law, for example, a regulatory fine can be combined with points in the German driving fitness register and driving bans; in commercial and tax matters, fines can be accompanied by tax reassessments and follow-up criminal investigations.

In terms of substantive law, the system of administrative offences largely mirrors German criminal law. Many regulatory provisions correspond to criminal offences: for instance in tax law (where a distinction is made between tax evasion as a criminal offence and “reckless” tax reduction as an administrative offence), in accounting and capital market law, or in insolvency-related duties.

The key distinction lies in the type of sanction and in the procedural principles. Criminal offences are prosecuted under the principle of legality: the public prosecutor’s office is generally obliged to initiate an investigation if there is sufficient initial suspicion against an accused person. Administrative offences, by contrast, are prosecuted under the principle of opportunity: the competent administrative authority has discretion as to whether to pursue or discontinue the matter. Nevertheless, fines and associated measures such as confiscation of profits can have an existential impact on individuals and companies.

Course of administrative offence proceedings

Warning, warning fee and cost order

For minor breaches of regulatory provisions, German law provides for a simplified procedure: a warning combined with a small warning fee (Verwarnung mit Verwarnungsgeld). If the person concerned agrees and pays the warning fee on time, no formal notice of administrative fine is issued and the matter is settled quickly and at lower cost.

If the person concerned does not agree, does not react or pays late, the authority can open a regular fine proceeding and issue a formal notice of administrative fine. In practice, the decision whether to accept a warning or to let the case proceed should be taken only after considering the evidence, the threatened legal consequences and any possible impact on driving privileges, professional licences or business activities.

In German road traffic law there is a particular constellation: if the actual driver cannot be identified after a parking or stopping violation, section 25a of the German Road Traffic Act (Straßenverkehrsgesetz – StVG) allows the authority to issue a cost order against the registered keeper of the vehicle. This cost order does not replace a notice of administrative fine; it merely shifts the investigation costs to the keeper.

Notice of administrative fine, deadlines and objection

The core element of the procedure is the notice of administrative fine (Bußgeldbescheid). It becomes final and enforceable if no objection (Einspruch) is filed within two weeks of service. The objection must be lodged in German, in writing or for the record at the authority, and must clearly identify the case and be received within the time limit. For persons living abroad, questions of proper service and time limits may require special examination.

From a defence perspective, an objection is often advisable in order to have the case re-examined or discontinued. A written statement of reasons is not legally mandatory, but in practice it is usually sensible to explain the factual and legal points in dispute, particularly in complex cases involving commercial or tax-related allegations. Before doing so, defence lawyers will generally seek access to the investigation file, which is crucial for assessing the evidence and developing a strategy.

An objection can be withdrawn at any time. However, once withdrawn, the notice of administrative fine immediately becomes final and enforceable. The decision to withdraw should therefore be taken only after careful consideration, ideally following a legal assessment of the prospects at court and of any negotiation options with the authority.

In lighter criminal cases, German criminal procedure also provides for a written penal order (Strafbefehl) instead of a trial. Although separate from administrative offences, there are structural similarities in terms of deadlines and available remedies. Our legal dictionary entry on the penal order (Strafbefehl) explains this instrument in more detail.

Authority, public prosecutor and local court

If the authority upholds the notice of administrative fine despite the objection, it forwards the file to the public prosecutor’s office. The public prosecutor reviews the case and can either discontinue the proceedings or submit them to the local court (Amtsgericht) with a request for judicial decision.

As a rule, the competent court is the local court where the authority issuing the notice of administrative fine is located. In practice, the place of the alleged offence, the residence of the person concerned and the court venue may therefore be in different parts of Germany – especially where a nationwide authority is involved.

If the facts are sufficiently clear from the file and the person concerned agrees, the court can decide by written order, without an oral hearing. If the court finds that a hearing is necessary – for example because witness evidence is required – or if the parties insist on a hearing, a main hearing is scheduled. The local court then decides by judgment. Depending on the amount of the fine and the type of offence, a legal remedy (in particular a complaint on points of law) may be available against the judgment.

The interplay between administrative offence proceedings and criminal proceedings is governed by the German Code of Criminal Procedure (Strafprozessordnung – StPO). Our overview of the course of criminal proceedings in Germany provides a helpful framework for understanding the stages of investigation, charging, main hearing and legal remedies.

Typical administrative offences – traffic, trade and construction law up to tax law

Administrative offences in road traffic

Road traffic administrative offences under section 24 StVG are among the most common cases in practice. The specific regulatory offences and fine levels are set out in various regulations, such as the Road Traffic Regulations (Straßenverkehrsordnung – StVO), the Road Traffic Licensing Regulations (StVZO), the Vehicle Registration Regulations (FZV) and the Driving Licence Regulations (FeV).

These provisions govern, for example, speeding, red light violations, failure to maintain a safe distance, mobile phone use while driving, infringements of driving and rest times for professional drivers, and vehicle or load defects. Depending on the severity and history, additional measures such as points, driving bans and, in serious cases, withdrawal of the driving licence may be imposed. Further information is provided in our legal dictionary entries on the driving ban and driving licence withdrawal, withdrawal of the driving licence and driving under the influence of alcohol or drugs.

In particularly serious cases – for example dangerous driving or hit-and-run – criminal proceedings under sections 315c or 142 of the German Criminal Code (Strafgesetzbuch – StGB) may be added to the administrative offence. Our general criminal defence page explains how we defend clients in traffic-related criminal cases and associated administrative measures.

Tax and business-related administrative offences

In tax law, the German Fiscal Code (Abgabenordnung – AO) distinguishes between intentional tax evasion (a criminal offence under section 370 AO) and reckless tax reduction (an administrative offence under section 378 AO). Section 379 AO defines further administrative offences relating to tax endangerment, for example through incorrect vouchers, incomplete bookkeeping or failure to comply with record-keeping and cooperation duties.

Such cases are often examined by the tax investigation office (Steuerfahndung) and the special fines and criminal matters unit (Bußgeld- und Strafsachenstelle – BuStra) of the tax authorities, and they frequently overlap with criminal tax proceedings. Alongside fines, substantial tax arrears are regularly assessed, sometimes on the basis of estimates. Our practice area on tax evasion and defence in Germany as well as our legal dictionary entry on tax evasion and criminal tax law provide further background.

Depending on the structure of the case, VAT-related administrative offences and tax evasion may also play a role, for example in connection with VAT carousel fraud or VAT evasion. Given the complexity of these proceedings, the defence must be familiar not only with criminal and administrative offence law, but also with tax law and accounting issues.

Further administrative offences in secondary criminal law

Sections 111 et seq. OWiG contain various administrative offences, such as giving false personal details (§ 111 OWiG), unlawful noise (§ 117 OWiG), disturbing the public peace (§ 118 OWiG), grossly indecent behaviour (§ 119 OWiG) or keeping dangerous animals (§ 121 OWiG). In addition, there is a barely manageable number of administrative offences in federal and state laws, for example in trade law, building regulations, youth protection law and environmental law.

Businesses and entrepreneurs are often confronted with fines for violations of permit requirements, building and planning regulations, or youth protection rules. These administrative offences may be closely linked to criminal allegations such as fraud, breach of trust, market manipulation or money laundering. Our practice area on fraud, breach of trust and white-collar crime defence and our legal dictionary entries on fraud (§ 263 StGB) and money laundering (§ 261 StGB) illustrate typical constellations.

Corporate fines under section 30 OWiG and supervisory duties under section 130 OWiG

Only natural persons can commit administrative offences or criminal offences in Germany. However, section 30 OWiG allows regulatory fines to be imposed on legal entities and associations of persons if an organ, representative or senior manager has committed a criminal or administrative offence that violates duties incumbent on the company or is intended to enrich the company. In such a case, a corporate fine can be imposed in addition to the individual liability of the person concerned.

Under section 30 (2) OWiG, fines imposed on companies can reach up to EUR 10 million for intentional criminal offences and up to EUR 5 million for negligent criminal offences; in the case of administrative offences the maximum fine usually depends on the underlying statutory framework and can be multiplied by reference to section 30 OWiG. In addition, any economic advantage gained from the offence can be fully confiscated, so that total payments may far exceed the fine itself.

Section 130 OWiG also penalises breaches of supervisory duties in businesses and companies. If management has not organised supervision and compliance structures adequately, and this has enabled employees or agents to commit administrative offences or crimes, a fine may be imposed for the supervisory failure itself. This regime forms a central legal basis for corporate sanctions in Germany, alongside confiscation and sector-specific regimes.

Our legal dictionary entry on corporate fines and supervision duties under sections 30 and 130 OWiG explains these provisions and their interaction with corporate and white-collar crime in more detail. In practice, corporate fines are often imposed in connection with complex economic offences and tax cases, for example in relation to cum-ex and cum-cum transactions or capital market offences, where our firm has significant experience.

Limitation periods, costs and special constellations

Limitation periods for administrative offences

The limitation period for prosecuting administrative offences (Verfolgungsverjährung) is determined by the maximum fine threatened for the offence (section 31 OWiG). Many minor administrative offences become time-barred within six months; simple road traffic administrative offences under section 24 StVG even become time-barred after three months, as long as no notice of administrative fine has been issued or public charges brought. After a notice of administrative fine, the limitation period is generally six months; for administrative offences with higher maximum fines, longer periods of up to three years apply.

The limitation period usually starts when the offence is completed or, in the case of offences defined by a result, when the result occurs. Certain procedural steps – such as hearing the person concerned, questioning witnesses or issuing the notice of administrative fine – interrupt the limitation period and cause it to start running again (section 33 OWiG). An absolute limitation period prevents indefinite extension of the proceedings.

Costs of administrative offence proceedings

The authority charges a fee for its decision on the administrative fine. As a rule, this amounts to 5% of the imposed fine, subject to minimum and maximum thresholds (currently at least EUR 25 and at most EUR 7,500). In addition, disbursements such as service costs, expert fees and translation costs can be charged.

If the case is referred to the court following an objection, the court decides on costs and necessary expenses in accordance with the rules applicable in criminal proceedings (sections 464 et seq. StPO). In extensive proceedings with complex evidence – for example in economic or tax-related cases involving expert reports – the cost risk can therefore be substantial. A realistic assessment of prospects and possible procedural strategies is therefore important at an early stage.

Young persons and enforcement within the European Union

As in criminal law, children under 14 years of age are not responsible under OWiG; their conduct cannot be sanctioned. For juveniles between 14 and 17, it must be examined on a case-by-case basis whether they had the insight required to understand the wrongfulness of their behaviour. Young adults aged 18 to 20 are treated as adults in administrative offence law. Proceedings before the youth court are not public and may provide for educational measures that differ from those applicable to adults.

With the German Act on the Mutual Recognition and Enforcement of Financial Penalties and Confiscation Orders in the European Union (EuGeldG) and corresponding provisions in the International Mutual Legal Assistance Act (IRG), fines from other EU Member States can, from a certain threshold, be recognised and enforced in Germany. Conversely, German fines can be enforced abroad. Foreign nationals who commit an administrative offence in Germany should therefore not assume that a fine will have no consequences if they return to their home country.

The role of the criminal defence lawyer in administrative offence proceedings

Although administrative offences are formally categorised as “administrative wrongdoing”, professional defence is often crucial. This begins with the correct reaction to a hearing letter or a police summons in Germany and extends to the evaluation of the evidence, negotiation with the authority and representation before the local court.

Key defence tools include the right to remain silent and the right to refuse to provide information that may incriminate oneself or close family members. These rights apply in administrative offence proceedings just as they do in criminal proceedings, and should be exercised until the defence has obtained and reviewed the file. Our dictionary entries on the accused in German criminal proceedings and the summons for interrogation of the accused explain the underlying principles.

In many cases, the main objective is to avoid or limit collateral consequences: reducing fines, preventing driving bans, avoiding entries in registers, and preventing proceedings from escalating into criminal prosecutions. This often requires strategic coordination where there are parallel criminal investigations, for example in tax or corporate criminal law.

Our specialist criminal defence lawyers in Frankfurt combine in-depth knowledge of German criminal and administrative offence law with practical experience in dealing with authorities, public prosecutors and courts throughout Germany. They analyse the file, identify weak points in the case and develop a tailored defence strategy aimed at an early and discreet resolution wherever possible.

Why Buchert Jacob Peter – specialised defence in fine and criminal proceedings

Buchert Jacob Peter is a boutique law firm focusing on criminal law, white-collar crime and tax criminal law. Our lawyers appear before local courts, regional courts and specialised white-collar criminal chambers across Germany, and have extensive experience in complex fine proceedings against individuals and corporate officers.

In cases with a tax or accounting dimension, we work closely with a former tax investigator and certified accounting expert. This enables us to understand and challenge complex financial reconstructions, tax estimates and profit calculations that often form the basis of high fines and confiscation measures.

• Defence in administrative offence proceedings and criminal cases nationwide
• Special expertise in white-collar and tax-related offences with parallel fine proceedings
• Experienced handling of search and seizure measures, confiscation and corporate fines
• English-speaking defence for international clients and expatriates in Germany
• Partner-level attention and discreet, strategic case management

For an overview of our areas of work, please see our page on practice areas – criminal defence in Frankfurt.

FAQs: administrative offences and fine proceedings in Germany

Is an administrative offence in Germany “less serious” than a criminal offence?

An administrative offence does not lead to a criminal conviction in the strict sense and, for example, does not result in an entry in the Federal Central Register in the same way as a criminal judgment. The sanction is a regulatory fine, not a criminal penalty such as imprisonment. However, the practical consequences can still be serious: high fines, driving bans, entries in certain registers and professional or business consequences. In business and tax matters, administrative offences often go hand in hand with criminal investigations, so that the overall risk may be considerable.

Is it worth objecting to a notice of administrative fine (Bußgeldbescheid)?

Whether an objection is advisable depends on the individual case: the strength of the evidence, the amount of the fine, possible collateral consequences (driving ban, points, professional repercussions), and the available defence arguments. In many cases, a well-founded objection – based on a careful file review – can lead to discontinuance of the proceedings or a reduction of the fine. In others, it may be more appropriate to seek a negotiated outcome. A defence lawyer can assess the prospects and risks and discuss strategic options with you.

Can my company be fined even if “only” an employee committed the violation?

Yes. Under sections 30 and 130 OWiG, companies can be fined if an organ, representative or senior manager has committed a criminal or administrative offence connected to the company, or if management has violated supervisory duties. In such cases, substantial corporate fines and confiscation of economic advantages are possible. It is therefore important that both individual decision-makers and the company itself are appropriately advised and represented. Our legal dictionary entry on corporate fines and supervision duties provides more detail.

When does an administrative offence become time-barred?

Many minor administrative offences become time-barred after six months, traffic administrative offences under section 24 StVG initially after three months. For offences with higher maximum fines, longer limitation periods of up to three years may apply. Each interrupting measure – such as a hearing, the issuing of a notice of administrative fine or a court decision – causes the limitation period to start anew, subject to an overall maximum period. Whether limitation has occurred can be an important line of defence and should always be examined in detail.

What should I do if I receive a hearing letter or a police summons?

If you receive a hearing letter or a police summons in Germany, you should not make any statements on the facts without legal advice. You have the right to remain silent and the right to consult a defence lawyer. In many cases it is sufficient – and strategically wise – for your lawyer to contact the authority, request access to the file and then jointly decide whether and to what extent you should comment.

What does a defence lawyer cost in an administrative offence proceeding?

Lawyer’s fees depend on the type and scope of the case, the amount of the fine and the complexity of the factual and legal issues. In straightforward traffic matters with low fines, the costs will usually be lower than in complex economic or tax-related proceedings involving extensive evidence and high financial stakes. It is often possible to agree on transparent fee arrangements, especially in larger cases. In an initial consultation, we clarify the factual situation, outline possible strategies and explain the expected costs.

What if I live abroad and receive a German fine notice?

Foreign nationals living abroad can also receive German notices of administrative fines, for example for traffic offences in Germany. Questions then arise about proper service, deadlines for objection and the possibilities of cross-border enforcement. Under EU rules, fines from Member States can, above certain thresholds, be recognised and enforced in other Member States. If you live abroad and receive a notice of administrative fine from Germany, you should seek legal advice promptly so that deadlines are not missed and options for defence or settlement can be examined.

Contact our experts in criminal tax law, white-collar crime and criminal defence in Frankfurt

These high demands on procedural expertise and substantive criminal law knowledge are met by our team of four specialists, who are available to advise and defend you in administrative offence and criminal proceedings:

• Rechtsanwalt Frank M. Peter, Fachanwalt für Strafrecht
• Rechtsanwältin Dr. Caroline Jacob, Fachanwältin für Strafrecht
• Als Of Counsel: Prof. Dr. Frank Peter Schuster
• Als Kooperationspartner: Steuerberater und ehemaliger Steuerfahnder Frank Wehrheim

This team brings, among others, the following additional qualifications:

• Zertifizierter Berater im Steuerstrafrecht (DAA)
• Zertifizierter Bilanzierungsexperte (Steuer-Fachschule Dr. Endriss)
• Abgeschlossenes Weiterbildungsstudium im Steuerstrafrecht (FernUniversität in Hagen)
• Über 25 Jahre Erfahrung als Steuerfahnder
• Fachanwälte für Strafrecht
• Universitätsprofessor für Internationales Strafrecht und Wirtschaftsstrafrecht

Our law firm has been working in Frankfurt am Main for over 25 years with experienced defence lawyers in criminal law. We represent our clients in administrative offence and criminal proceedings throughout Germany.

Contact us – your specialist defence lawyers for criminal law, white-collar crime and tax criminal law in Frankfurt am Main and nationwide.

Phone: +49 69 710 33 330
E-mail: kanzlei@dr-buchert.de

For further information on criminal, white-collar and tax criminal defence in Frankfurt, please see:

• Tax criminal law and defence in tax evasion cases
• Criminal defence in Frankfurt
• White-collar crime defence
• Our attorneys
• Legal dictionary (German criminal law in English)

If you or someone close to you is facing an administrative fine proceeding or parallel criminal investigation in Germany and you require English-speaking advice and representation, you can reach us via our contact page or directly by phone or e-mail.

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