What German law says
As of 18.09.2026, all sources checked on that day
The essentials
- No notary is needed. German law prescribes no particular form for a loan between private individuals.
- Print it and sign it by hand. Only then does the note serve as full evidence in court.
- Without a repayment date, a notice period of three months applies.
- The claim becomes time-barred after three years, counted from the end of the year in which it fell due.
- In a dispute, whoever wants the money back must prove it was not a gift. That is what the note is for.
- After repayment the borrower receives a receipt and gets the note back.
The law by topic
Every paragraph links to the statute on gesetze-im-internet.de (German).
Form and signature§ 126, 781 BGB
German law prescribes no form for a loan agreement between private individuals. Written form is only required for consumer loans, that is when a business lends the money. § 492 BGB
An acknowledgement of debt, however, must be in writing, and electronic form is expressly excluded. A PDF sent by email or a scanned signature is not enough for that. § 781 BGB § 126 BGB
A signed private document is full proof that the statement in it comes from the person who signed. § 416 ZPO
Repayment and notice§ 488 BGB
If no repayment date is set, the loan only falls due once it is terminated. The notice period is three months. An interest-free loan may be repaid without notice. § 488(3) BGB
After repayment the debtor can demand a receipt and the return of the promissory note. § 368 BGB § 371 BGB
Limitation period3 years
The standard period is three years. It starts at the end of the year in which the claim arose, with an absolute limit of ten years. § 195 BGB § 199 BGB
For a loan the claim only arises when it falls due, so without a fixed date only after notice has been given (Federal Court of Justice, IX ZR 129/17).
Every instalment or interest payment restarts the limitation period. § 212 BGB
Interest and late paymentcurrently 6.52 %
Interest is only owed if it has been agreed. The law sets no fixed cap, but an extortionate rate makes the agreement void. § 488 BGB § 138 BGB
Whoever does not pay on time is in default. If the date is fixed in the calendar, no reminder is needed. Default interest is five percentage points above the German base rate, so currently 6.52 % per year between private individuals. § 286 BGB § 288 BGB
| Valid from | Base rate |
|---|---|
| 01.07.2026 | 1.52 % |
| 01.01.2026 | 1.27 % |
| 01.07.2025 | 1.27 % |
| 01.01.2025 | 2.27 % |
Loan or gift?§ 518 BGB
A promise to make a gift would need a notary, but that defect is cured as soon as the money has been handed over. § 518 BGB
In a dispute, whoever wants the money back therefore has to prove that it was not a gift (Federal Court of Justice, X ZR 150/11). A signed promissory note is that proof.
Taxinterest, gifts
Interest from a private loan counts as investment income and is generally taxable in Germany. § 20 EStG
An interest-free or very cheap loan can count as a gift of the interest saved. It is valued at the market rate where one can be established, otherwise at 5.5 % (Federal Fiscal Court, II R 20/22). § 15 BewG
Tax-free allowances over ten years include: spouse or civil partner EUR 500,000, children EUR 400,000, grandchildren EUR 200,000. § 16 ErbStG
Place of jurisdiction§ 38 ZPO
Private individuals can only agree on a place of jurisdiction in exceptional cases, for example once a dispute has already arisen. A general clause in a promissory note is therefore usually ineffective. Our generator leaves it out. § 38 ZPO
New from 20 November 2026§ 491 BGB
The new consumer credit rules will also cover interest-free credit from businesses. Nothing changes for loans between two private individuals, because a business as lender is still required. Federal Law Gazette 2026 I No. 139
Court decisions
Every decision opened and checked in full. Newest first.
-
Cheap family loan: market rate instead of a flat 5.5 %
The interest saved is subject to gift tax, but it is valued at the market rate where one can be established.
Full text at the court II R 20/22 -
Property given to a child and partner, the relationship ends
If the joint use lasted only a short time, the giver can usually withdraw from the gift.
Full text X ZR 107/16 -
For a loan without a term, limitation only starts with notice
The repayment claim arises when it falls due, and without a fixed date that depends on notice being given.
Full text IX ZR 129/17 -
A transfer without the reference "loan" is enough as proof
The transfer came right after the written agreement and instalments were paid afterwards. That was enough to prove the payout.
Full text 16 U 106/16 -
What the signed text says is presumed complete and correct
Anyone relying on arrangements outside the document has to prove them. Anything unclear creates no presumption.
Full text I ZB 63/16 -
Acknowledgement of a loan from parents
Someone who acknowledged a loan in writing cannot later raise objections they already knew about at the time.
Full text 10 U 62/16 -
Provision for a partner, reclaimed after separation
Such a contribution is usually not a gift and may have to be returned if the relationship later fails.
Full text X ZR 135/11 -
A mother claims money back from her daughter
The mother could not prove a loan agreement. Whoever wants the money back has to prove it was not a gift.
Full text X ZR 150/11 -
Loans between relatives in tax law
How strictly the tax office compares the agreement with one between strangers depends on the occasion. What matters is that it is actually carried out as written.
Full text X R 26/11 -
Separation: instalments paid for the partner's house
Without an express loan agreement there is usually no compensation, as long as the payments were not well above a rent.
Full text XII ZR 132/12 -
Contributions from parents-in-law after a divorce
They count as gifts but can be reclaimed once the marriage has failed.
Full text XII ZR 189/06 -
A genuine promissory note carries the claim
Once the signature is proven, the creditor does not have to explain the circumstances. The note also works as a receipt.
Full text (LMU case collection) 15 U 72/02
Federal courts via the official portal rechtsinformationen.bund.de (test phase), North Rhine-Westphalia courts via nrwe.justiz.nrw.de. All decisions are in German.