The rule: three years, counted from the end of the year
The standard limitation period is three years (sec. 195 German Civil Code, BGB). It does not run from the invoice date or the due date. Under sec. 199 (1) BGB it begins at the end of the year in which the claim arose and the creditor became aware of the circumstances giving rise to the claim and of the identity of the debtor — or would have become aware but for gross negligence. In practice, almost all claims from ordinary business dealings become time-barred collectively on New Year’s Eve. German lawyers call it the „Silvesterverjährung”.
Example: an invoice for works performed and accepted in March 2023. The period started at the end of 2023 and expires on 31 December 2026 at midnight. A lawsuit or an application for a default notice filed in January 2027 comes too late.
The upper limits: ten and 30 years
Lack of knowledge postpones the start, but not forever. Regardless of knowledge, claims become time-barred at the latest ten years after they arose (sec. 199 (4) BGB). Damages claims have their own caps: ten years from when the damage arose or 30 years from the harmful event, whichever ends earlier (sec. 199 (3) BGB). For injuries to life, body, health or liberty the limit is 30 years from the event (sec. 199 (2) BGB).
Special periods: from two to 30 years
- Claims established by a final judgment and claims under enforceable settlements or deeds become time-barred only after 30 years (sec. 197 (1) BGB). A German judgment or enforcement order preserves the debt for decades. Only recurring obligations covered by the title, such as post-judgment interest, fall back to the standard period (sec. 197 (2) BGB).
- Defects in a building: five years from acceptance (sec. 634a (1) BGB). The same five years apply to goods that were used for a building in accordance with their customary use and caused its defectiveness (sec. 438 (1) no. 2 BGB).
- Warranty claims for purchased goods: generally two years from delivery (sec. 438 (1) no. 3 BGB).
Contracts modify these rules within statutory limits — German standard terms (AGB) do so routinely. In cross-border contracts, the law governing the contract also governs limitation, so check the choice-of-law clause before you count any deadline.
What suspends the clock
Negotiations: while the parties are discussing the claim or its underlying circumstances, the period is suspended, and limitation occurs at the earliest three months after either side refuses to continue (sec. 203 BGB). Keep a record of every settlement exchange.
Formal steps: filing a lawsuit and service of a court default notice (Mahnbescheid) suspend the period (sec. 204 (1) nos. 1 and 3 BGB), and the suspension lasts another six months after the proceedings end (sec. 204 (2) BGB). A crucial year-end detail: if the Mahnbescheid application reaches the court before 31 December and service follows without undue delay, the suspension relates back to the day of filing (sec. 167 German Code of Civil Procedure, ZPO).
A reminder does not stop the clock
A payment reminder, dunning letter, e-mail or phone call does NOT suspend the limitation period. This is the most common and most expensive mistake creditors make. Only negotiations, a lawsuit or a served Mahnbescheid stop the clock — and the debtor’s acknowledgment restarts it.
What restarts the period (sec. 212 BGB)
If the debtor acknowledges the claim — by paying an instalment, paying interest, providing security or in any other way — the three-year period starts afresh (sec. 212 (1) BGB). The same applies to judicial or official enforcement acts. In practice, a debtor’s request for instalments or a small goodwill payment can hand the creditor three extra years. From the debtor’s perspective: before signing any acknowledgment or instalment plan, check the limitation position first.
The effect: a defence, not an automatism
A time-barred claim does not expire. The debtor gains the right to refuse performance (sec. 214 (1) BGB) — but the court will not consider limitation of its own motion, the defence must be raised. The flip side: whoever pays a time-barred debt cannot reclaim the money, even if unaware of the limitation (sec. 214 (2) BGB). Before paying anything on old debts — especially after a collection letter — check the dates first.
The fourth quarter: last call for a receivables check
A practical routine for companies dealing with German partners: in autumn, review all unpaid invoices from the year whose third full calendar year ends this New Year’s Eve — in 2026 these are the 2023 invoices. Send viable claims into the court dunning procedure or litigation before year-end. Where talks are ongoing, document the negotiations (sec. 203 BGB) or obtain a written acknowledgment. If the debtor is insolvent, consider filing your claim in the insolvency proceedings — that suspends the period as well.
Limitation under control
Determine the year the claim arose and add three full calendar years — the period ends on New Year’s Eve. Check the exceptions: enforceable titles (30 years), building defects (five years), sale of goods (two years), the other side’s standard terms. Only negotiations, a lawsuit or a served Mahnbescheid suspend the clock — reminders do not. Restart triggers: instalments, interest payments, security, acknowledgment, enforcement acts (sec. 212 BGB). Close to the deadline: file the Mahnbescheid application before 31 December — with prompt service, the filing date counts (sec. 167 ZPO).
Frequently asked questions
How long is the standard limitation period in Germany?
Three years (sec. 195 BGB), counted from the end of the year in which the claim arose and the creditor gained knowledge (sec. 199 (1) BGB).
When does a 2023 invoice become time-barred?
As a rule on 31 December 2026 at midnight — unless the period was suspended or restarted.
Does a payment reminder interrupt the limitation period?
No. Reminders and e-mails have no effect. Suspension requires negotiations (sec. 203 BGB), a lawsuit or a served default notice (sec. 204 BGB), and a restart requires the debtor’s acknowledgment (sec. 212 BGB).
How long can a German judgment or enforcement order be enforced?
30 years (sec. 197 (1) BGB). Post-judgment recurring interest, however, is subject to the standard period (sec. 197 (2) BGB).
Will the court notice the limitation by itself?
No. Limitation is a defence the debtor must raise (sec. 214 (1) BGB). Money paid on a time-barred debt cannot be reclaimed (sec. 214 (2) BGB).
Legal position verified on 19.07.2026 at gesetze-im-internet.de (secs. 195, 197, 199, 203, 204, 212, 214, 438, 634a BGB, sec. 167 ZPO). This article is for general information and does not replace legal advice in an individual case.