{"id":1175,"date":"2026-04-13T16:24:27","date_gmt":"2026-04-13T14:24:27","guid":{"rendered":"https:\/\/galen.de\/?page_id=1175"},"modified":"2026-06-03T09:45:45","modified_gmt":"2026-06-03T07:45:45","slug":"right-of-confiscation-asset-deduction","status":"publish","type":"page","link":"https:\/\/galen.de\/en\/rechtsgebiete\/wirtschaftsstrafrecht\/einziehungsrecht-vermogensabschoepfung\/","title":{"rendered":"Confiscation & Asset Recovery"},"content":{"rendered":"
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In recent years, the confiscation of assets in criminal proceedings has evolved from a "side issue" to a distinct area of risk. Since the 2017 reform, confiscation under Sections 73 et seq. of the German Criminal Code (StGB) is regularly ordered in practice and often secured during the preliminary investigation, particularly through asset seizures. For those affected, the resulting financial consequences can be more severe in individual cases than the actual threat of punishment. Furthermore, confiscation measures are not limited to defendants. Third parties can also be targeted, even if they are not the subject of any criminal charges.<\/span><\/p>

Especially in economic and tax criminal law, the right of confiscation is therefore highly relevant. In fraud proceedings (\u00a7 263 StGB) and embezzlement proceedings (\u00a7 266 StGB), in cases of subsidy fraud (\u00a7 264 StGB) or loan fraud (\u00a7 265b StGB), in proceedings for withholding and misappropriating wages (\u00a7 266a StGB) as well as in tax criminal situations (\u00a7\u00a7 370 ff. AO), the question "What is the potential for asset confiscation?" is regularly among the first and most important questions from clients.\u00a0<\/span><\/p>

Asset confiscation pursuant to Sections 73 et seq. of the German Criminal Code \u2013 Principles of confiscation<\/b><\/h2>

Asset confiscation is regulated in Sections 73 et seq. of the German Criminal Code (StGB) and follows the legislative principle that criminal offenses should not be economically rewarding. The aim is to confiscate what was obtained "through" or "for" an unlawful act.\u00a0<\/span><\/p>

The central concept is that of "obtained property." Obtained property encompasses everything that has actually accrued to the perpetrator's assets through or as a result of the offense. This includes all economically measurable benefits. In confiscation proceedings, the tangible obtained property is first determined. Subsequently, an evaluative assessment is conducted in accordance with Section 73d of the German Criminal Code (StGB). According to the gross principle, consideration received or expenses are generally not deductible.<\/span><\/p>

The 2017 reform of criminal asset forfeiture systematically reorganized and significantly strengthened confiscation. Since then, it is generally mandatory if the legal requirements are met.<\/span><\/p>

Confiscation of proceeds of crime and compensation for value \u2013 What can be confiscated?<\/b><\/h2>

The core aspect of asset confiscation is the seizure of proceeds of crime pursuant to Section 73 of the German Criminal Code (StGB). Proceeds of crime are assets acquired by the perpetrator or accomplice. <\/span>through the<\/span> The act has been carried out. This includes monetary payments, claims, saved expenses, or other economic advantages.<\/span><\/p>

According to Section 73a of the German Criminal Code (StGB), the court may, within the framework of ongoing criminal proceedings, also confiscate objects belonging to the perpetrator or accomplice that do not originate from the offense being prosecuted, but from other unlawful acts. The prerequisite is, firstly, that a specific unlawful act \u2013 the so-called connecting offense \u2013 has been proven; however, proof of which specific other offense the object originates from is not required.\u00a0<\/span><\/p>

If, for example, the specific proceeds of crime are no longer available, the confiscation of the value of the proceeds of crime pursuant to Section 73c of the German Criminal Code (StGB) may be considered. In this case, no specific object is confiscated; instead, the confiscation of a sum of money equal to the value of the proceeds is ordered. This confiscation of equivalent value is of considerable practical importance, as it applies regardless of the current existence of individual assets.<\/span><\/p>

Collection from third parties and companies<\/b><\/h2>

A key differentiating feature in confiscation law is confiscation from third parties pursuant to Section 73b of the German Criminal Code (StGB). Asset forfeiture can be directed not only against the accused, but also against persons who have obtained something from the crime.<\/span><\/p>

This is particularly relevant in a corporate context. If, for example, a managing director acts on behalf of a company and the economic benefit accrues to the company, confiscation of assets can be ordered against the company as a third-party beneficiary. Criminal liability then lies with the individual, while the asset forfeiture affects the company's assets. The company can then participate in the criminal proceedings against the individual as a so-called party subject to confiscation.<\/span><\/p>

Asset seizure and confiscation during criminal proceedings<\/b><\/h2>

The subsequent confiscation of assets is often prepared during the preliminary investigation through protective measures. The central instrument is the seizure of assets pursuant to Sections 111e et seq. of the German Code of Criminal Procedure (StPO). This serves to secure a potential confiscation order. A seizure of assets can, in particular, encompass accounts, real estate, or other assets. These measures do not require a conviction but are based on an initial suspicion and a legitimate interest in securing the assets.<\/span><\/p>

For those affected, the seizure of assets is often the most financially damaging intervention of the entire investigation, because it frequently occurs early in the proceedings and is often maintained for a long time \u2013 without a verdict in the case. The lawyers at Galen Rechtsanw\u00e4lte review the factual prerequisites for the seizure order, its proportionality, and the specific amount of the secured sum.<\/span><\/p>

Confiscation in economic and tax criminal law \u2013 Typical scenarios<\/b><\/h2>

Asset confiscation is of particular practical importance in economic and tax criminal law. In cases of fraud, embezzlement, subsidy or investment fraud, as well as allegations of withholding and misappropriating wages, substantial assets are regularly at stake. In tax criminal law, the key question is whether and to what extent an economic advantage was actually gained through the unpaid taxes.<\/span><\/p>

Furthermore, there is the possibility of independent confiscation under Section 76a of the German Criminal Code (StGB). Confiscation can also occur, subject to the other requirements for confiscation, even if no specific person can be prosecuted or convicted. In certain offenses, such as suspected money laundering, independent confiscation can even occur without proof of a specific unlawful act.\u00a0<\/span><\/p>

Defense against confiscation and seizure measures \u2013 your legal advice and representation by Galen Lawyers<\/b><\/h2>

The lawyers at Galen Rechtsanw\u00e4lte advise and defend clients nationwide in white-collar crime cases, including those against arrest warrants and confiscation orders. We have extensive forensic experience in complex economic proceedings and in representing companies and their governing bodies.<\/span><\/p>

In confiscation law, defense aims not only at the criminal assessment of the act itself, but also at the attribution of the act and the benefit, the calculation of the amount, and the security measures in the investigation proceedings.<\/span> The central question usually remains whether an unlawful act has actually occurred.<\/span><\/p>

Especially in a business and corporate context, the attribution of what has been obtained is complex. It is particularly important to distinguish whether what has been obtained is attributable to the acting natural person or to the company.<\/span><\/p>

Even if confiscation is justified in principle, the amount is often disputed. Confiscation amounts are frequently calculated too high, and the recovered assets are incorrectly allocated. The gross principle is of particular importance in this context. We examine whether the legal prerequisites for disregarding expenses are actually met and whether the value of the recovered assets has been correctly assessed.<\/span><\/p>

In many cases, the question of confiscation arises early in the investigation. <\/span>The greatest practical risk therefore does not lie in the verdict itself.<\/span>, but rather in the security measures ordered at an early stage. Asset seizure and confiscation pose significant problems in practice because they can reduce the company's liquidity and considerably disrupt operations. We therefore examine the prerequisites of Sections 111b et seq. of the German Code of Criminal Procedure (StPO) at an early stage.\u00a0<\/span><\/p>

Where necessary, we utilize the available legal remedies to have seizure orders reviewed and to safeguard economic viability. The aim is not only to mitigate the material issue of confiscation but also to reduce the immediate economic impact of the proceedings.<\/span><\/p>

We offer personal and individual consultations. Please feel free to contact us to schedule an appointment.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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