How to Terminate Contracts in Germany

If you are living in Germany and planning to move abroad, you have likely realized how much organizational effort is involved. Besides planning your relocation, you should terminate any contracts you will no longer need in your new country of residence. Here is an overview of the contracts to consider:

• Rental agreement
• Electricity, gas, and water contracts
• Internet and mobile phone contracts
• Insurance policies (e.g., liability, household)
• Employment contract
• Broadcasting fee (GEZ)
• Gym membership
• Subscriptions and memberships
• Contracts for child benefits, daycare, school, and kindergarten
• Car insurance and vehicle tax

Good to Know: You Have a Special Right of Termination When Leaving Germany
When moving to your new country of residence, you often have a special right to terminate contracts before the regular end date. This applies to services like electricity, internet, and mobile phone contracts. First, check whether your contract is fixed-term or open-ended, as this can affect the notice periods.

Terminating Contracts: Key Terms and Their German Equivalents

When planning to leave Germany, it is essential to understand the following German terms related to contract termination:

• Unlimited Contract (“unbefristeter Vertrag”): NA contract without a fixed end date, which can usually be terminated with ordinary notice in accordance with the contractually agreed notice periods. Examples include most cell phone and electricity contracts.
• Limited Contract (“befristeter Vertrag”): A contract concluded for a fixed term, e.g. 12 or 24 months. It is often extended automatically if it is not terminated in good time.
• Ordinary Termination (“ordentliche Kündigung”): The regular form of termination, which takes place in compliance with the contractually stipulated deadlines and conditions. This form of termination is possible for most contracts, for example mobile phone or gym contracts.
• Extraordinary Termination (“außerordentliche Kündigung”): Termination that can take place prematurely and without observing the regular notice periods, e.g. for serious reasons or breaches of contract.
• Special Right of Cancellation (“Sonderkündigungsrecht”): Also known as the extraordinary right of termination, allows you to terminate a contract before the end of the regular term, e.g. if you move abroad, there is a price increase or the terms of the contract change.

What’s New: Contract Cancellation 2022

Since 2022, improved regulations apply for consumers who wish to terminate contracts. Contracts that are automatically renewed after the minimum term has expired can now be terminated with just one month’s notice. This regulation also applies to old contracts and makes it much easier to terminate old contracts

Bureaucracy can also be a challenge for German citizens, too!

German bureaucracy is often a challenge even for locals. To make the termination process easier, there are various templates and samples to help you submit your notice of termination correctly and on time. You can also use online portals to cancel contracts online, which saves you time and effort.

What is the Difference Between an Unlimited and a Limited Contract?

Unlimited contracts can be terminated at any time with ordinary notice. The notice periods are often short and vary depending on the contract, e.g. at the end of the month, at the end of the following month or within a few months. This flexibility makes it easy to meet the deadlines and terminate the contract as soon as you no longer need it.

Limited contracts have a fixed duration and are harder to cancel early, often requiring extraordinary termination.In order to terminate such a contract prematurely, extraordinary termination is usually required. This is often the case with telephone and cell phone contracts or electricity suppliers. As soon as you know that you will be emigrating, you should terminate the contracts and enclose a corresponding declaration with reasons.

Contractual partners often require a confirmation of deregistration from the residents’ registration office as proof. You can apply for this confirmation at the earliest seven days before you move abroad and submit it later.

What is the difference between extraordinary termination and ordinary termination?

With ordinary termination, you do not have to give a reason. Ordinary termination means you terminate your contract within your contractually specified term, and extraordinary termination is termination outside the fixed contract term.

To cancel a contract extraordinarily, you must prove with documents that there is a valid reason for termination. For example, if you are planning to move abroad, you can submit a deregistration confirmation or a new employment contract or rental agreement to obtain a special right of termination.

Special right of termination in case of relocation

The right of extraordinary termination comes into effect if the provider can no longer uphold the contractually agreed service at your new destination.

For example, if you move abroad, you can no longer use your Internet contract because your provider can no longer provide its service under the same conditions at your new place of residence. Thus, the extraordinary termination right applies, and you can terminate contracts unless otherwise specified in the contract.

Good to know: From 2022, tacit renewals of contracts will no longer be permitted unless the contract is for an indefinite period. From 2022, the customer has the right to terminate the contract at any time with one month’s notice. A longer notice period cannot be agreed. For contracts concluded before March 1, 2022, the old regulation will continue to apply!

Cancel Contracts Online with Deregistration.de

Are you planning to move to a new country or have you already left Germany? Deregistration.de helps you manage your deregistration and cancel all your contracts, keeping you organized and stress-free.

Which Contracts Should You Cancel?

• Insurance policies (fixed-term or open-ended)
• Memberships in clubs or sports associations
• Magazine subscriptions
• Telephone, internet, and electricity contracts

Our Service: Easily Cancel Contracts Online

With Deregistration.de, you can cancel your contracts online without any hassle. The cancellation tool guides you step-by-step through the process:

• Additional Service: We can send the cancellation notice and receive confirmation on your behalf.
• Start the Cancellation Process: Click “Start Now” and enter the required information.
• Create Your Cancellation Letter: The tool generates personalized cancellation letters with your digital signature.
• Send the Cancellation: Download your letter and send it directly to the provider, often by email.

“Do not forget to cancel your contracts in time! Simply disappearing is not an option – otherwise, you risk unnecessary problems when entering Germany later again”.

–Oliver Frankfurth

Which Contracts do I have to Cancel when Moving?

#1 Terminate your Rental Agreement

The notice period for rental apartments is usually three months. Check your tenancy agreement and inform your landlord in good time. If you already have new tenants, you can pass on their contact details to your landlord – but he is not obliged to accept your proposals. To make sure your notice of termination arrives on time, send it by registered mail or with a tracking ID, which you can obtain from any post office.

The rental deposit is usually refunded within six months of you moving out. It is often quicker if there are no rental debts or costs for the removal of defects.

#2 Cancel Electricity, Gas & Water Contracts

If you move, you can make use of a special right of termination when canceling your electricity, gas or water supplier. This right applies if your new place of residence is outside the supply area of your current supplier or if you are moving abroad.

Please note that the meter reading must be taken before terminating these contracts so that the last bill can be issued. This is usually done after your move and can take some time.

#3 Canceling cell phone contracts

If your mobile phone provider is unable to provide the contractually agreed services at your new place of residence, you have the right to terminate your cell phone contract early. However, please note that mobile phone providers often demand a compensation payment in such cases, especially if you have received a subsidized cell phone as part of the contract.
The special right of termination also applies to mobile phone contracts if the provider cannot guarantee the service at your new place of residence – especially abroad.

#4 Canceling your Internet contract

The same conditions apply to internet providers as to mobile phone contracts: If the provider is unable to provide the contractually agreed service at your new place of residence, you have a special right of termination. This allows you to terminate your internet contract when you move, even if the regular contract term has not yet expired.

Please note that the provider may require proof of your move abroad , e.g. a confirmation of deregistration, for the termination to be effective.

#5 Canceling insurance contracts

Canceling your insurance contracts is usually straightforward if you are planning to leave Germany. To cancel your insurance policies, you need a confirmation of deregistration, which you will receive at least seven days before you leave the country. To keep an overview, it makes sense to make a list of all your insurance policies:

• Health insurance
• Car insurance
• household contents insurance
• liability insurance
• etc.
  

Think about what other insurance policies you have taken out, and inform all insurers of your move in good time. If possible, make use of the special right of termination and enclose a copy of the confirmation of deregistration. With some providers, you can also submit the confirmation later.tificate from Germany as verification.

#6 Terminate your employment contract

To terminate your employment contract, you must give notice in writing. According to Section 623 of the German Civil Code (BGB), termination by text message, email or fax is not permitted – it must be in writing. Your letter of termination should be clearly worded and make it clear that you wish to terminate the contract.

Use wording such as: “I hereby terminate my employment contract with effect from the next possible date”.

Make sure you comply with the contractually agreed notice period and inform your employer as early as possible about your planned departure from Germany to ensure a smooth transition.

#7 Cancel the broadcasting fee or GEZ

You can cancel your radio tax in writing or online. Important to know: Cancellation only applies to future payments – retroactive refunds are usually not possible unless you can prove your emigration with your deregistration certificate. So if you only deregister in a few months’ time, you will not receive a refund for premiums already paid.

A convenient alternative is our Premium package, where we cancel all your contracts including the broadcasting fee for you. Even if the licence fee is not high, it makes no sense to pay for a service that you no longer use.

#8 Mail Forwarding order

If you leave Germany and move out of your old apartment, you must remove your name from the doorbell and letterbox, as the letter carrier will no longer deliver your mail. The mail will then be returned to the sender. To avoid this, it is advisable to set up mail forwarding.

With our forwarding service , you can ensure that all important documents such as account statements, invoices and other necessary correspondence are reliably forwarded to your new address. A reliable forwarding service is important so that you don’t miss any important letters even after you move abroad.Mail Forwarding

#9 Canceling a gym contract

If you want to cancel your gym contract because you’re moving abroad, it can be more complicated than you think. Gyms are not legally obliged to accept your termination due to a move abroad.

Therefore, check the contract term (usually 12 or 24 months) and the notice period (usually 3 months) to make sure you can terminate the contract on time.

Normally, gym contracts are automatically renewed if they are not terminated on time. If you cannot simply cancel the contract, you have the following options:

• Negotiate with the gym: try to negotiate directly with the provider and hope for goodwill, especially if you can present your confirmation of deregistration.
• Contract takeover: Ask a friend if they would like to take over your contract or post your request in a local Facebook group. This may help you find someone who wants to continue your contract. Please note, however, that your gym must agree to the contract transfer.

Even if direct termination is not always possible, there are creative ways to terminate or transfer the contract.

#10 Cancel memberships and subscriptions

People often forget which subscriptions and memberships they still have after a few years. Remember to check the following institutions and contracts and cancel them if necessary:

• Banks and building societies
• Bus and train cards (e.g. Deutsche Bahn)
• Memberships in associations or clubs
• Newspaper and magazine subscriptions

A regular review of these contracts helps to avoid unnecessary costs and ensure that you don’t overlook anything important.

#11 Close the bank account

If you are planning to emigrate from Germany, you should consider closing your bank account to avoid unnecessary account maintenance fees. Closing your account is usually straightforward as long as you have no outstanding debts. You can close your account informally by letter, stating your name, current address and account number.

When does it make sense to keep the bank account?

In some cases, it may make sense to keep your German bank account for some time, even after you have moved abroad.

• Outstanding payments or refunds: Refunds may still be coming in, e.g. from electricity or rent deposits, or you may need to settle final bills.
• Easy access to German services: Some services are easier to deal with if you still have a German bank account.
• Avoid exchange rate losses: If you continue to have income in euros, you can avoid exchange rate fees.

It is advisable to keep the bank account active for at least six months after emigration in order to process any payments or refunds safely. As soon as you are sure that no further transactions will take place, you can close the account without hesitation.

#12 Child benefit, daycare, school and kindergarten

If you are planning to leave Germany with your children, you must cancel your child benefit in order to avoid fines and the repayment of amounts you have wrongly received. The family benefits office, which is responsible for paying out child benefit, must be informed that you are moving abroad.

Why is it important to give notice?

If you continue to receive child benefit even though you are living abroad, fines may be imposed in addition to the money being reclaimed. It is best to inform the family benefits office in writing by registered letter and request confirmation of the termination. This confirmation can be important, as many countries offer their own child benefit or family benefits and often require proof that you are no longer receiving child benefit in Germany.

Notify school, daycare center and kindergarten

The school, daycare center or kindergarten should also be informed of your move in good time. There are often waiting lists and another family can take your place. It is also easier for the teachers, educators and caregivers to prepare for your departure and ensure a smooth transition.

If school or kindergarten fees are due, these should also be terminated in good time to avoid unnecessary costs. Timely notification ensures that everyone involved can organize the departure well.

What happens to my car when I move away?

If you move away from Germany, you can deregister your vehicle at any vehicle registration office – either locally or, if possible, via their online portal. Deregistration abroad, for example at a German diplomatic mission abroad, is generally not possible. Within the EU, you can take your car with you without any problems as long as you observe the relevant regulations of your destination country.

If you don’t want to take care of this yourself, you can use our car deregistration service, which will organize the deregistration for you. Find out more about the process and the requirements for deregistration in our blog post: Car Deregistration when leaving Germany

Conclusion – canceling contracts when moving

Moving abroad is associated with many organizational challenges and terminating contracts is one of the most time-consuming tasks. To ensure that you stay on top of things and don’t forget any important steps, it makes sense to start planning in good time and seek professional support. From terminating rental and electricity contracts to deregistering your car: with the right preparation and our services, you can master the move stress-free.

Please keep in mind that we do our best to provide credible and up-to-date information, but we are not an official advisor (in the sense of the Legal Services Act, RDG) for taxes, legal matters, and the like. Our service does not replace an individual consultation with legal assistance, and we provide digital tools and automated workflows to assist with the residence deregistration and related necessary steps.

Image sources:

1. Cytonn Photography/ Unsplash
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