Arbitration in Germany: the law, DIS Rules, costs and enforcement

The short version

• Arbitration in Germany is governed by Book 10 of the Code of Civil Procedure (ZPO), sections 1025 to 1066, which is based on the Model Law of the United Nations Commission on International Trade Law (UNCITRAL). It applies when the place of arbitration is in Germany (§ 1025(1)).
• The leading institution is the German Arbitration Institute (Deutsche Institution für Schiedsgerichtsbarkeit, DIS). Its 2018 Arbitration Rules are in force, with a new Annex 2 cost schedule from 1 March 2026.
• The DIS registered 218 new proceedings in 2025, its highest yet, worth about EUR 3.95 billion. English was the language in 31% of its arbitrations, and a foreign party was involved in just under a third.
• An award can only be set aside, on the Model-Law grounds in § 1059, within three months of receipt (§ 1059(3)). There is no appeal on the merits or on a point of law.
• Foreign awards are enforced under the New York Convention, and the competent court for set-aside and enforcement is the Higher Regional Court, the Oberlandesgericht (§§ 1061, 1062(1)).
• A reform bill (BT-Drucksache 21/8414, 7 October 2026) would ease the form of the agreement, allow video hearings and electronic awards, and open arbitration-related court proceedings to English. It is not yet law. The 2018 DIS Rules do not mention artificial intelligence (AI).^{1,2,7,12,13,14,19,20}

What law governs arbitration in Germany?

Arbitration in Germany is governed by Book 10 of the Code of Civil Procedure, the ZPO, in sections 1025 to 1066. This is Germany’s arbitration law, sometimes called the German Arbitration Act in English. Book 10 applies when the place of arbitration is in Germany (§ 1025(1)). A few of its sections reach further: a court can rule on an arbitration agreement (§ 1032), order interim measures (§ 1033) or help take evidence (§ 1050) even where the seat is abroad or not yet fixed (§ 1025(2)).^1,2

The Model Law is UNCITRAL’s 1985 template for national arbitration laws, amended in 2006. Book 10 is largely based on that 1985 text, and UNCITRAL lists Germany from 1998. Book 10 in its current form was created by the Act on the Reform of Arbitration Law of 22 December 1997 (BGBl. I p. 3224), in force on 1 January 1998.^2,7,20

The German text of Book 10 is the one that binds. The English translation on that site is unofficial, so we rely on the German.^1,2

Why do parties choose Germany as a seat?

Parties choose arbitration in Germany for a civil-law seat built on a Model-Law statute, with an established institution and a court system that supports the process and steps in only where the law allows. It gives a predictable set-aside regime, no appeal on the merits, and, since 2025, a court option in English for large commercial disputes (see reforms below).^3,4,13

Users still rank other seats higher. In the 2025 International Arbitration Survey by Queen Mary University of London, respondents could name up to five seats. London was named by 34% and Singapore and Hong Kong by 31% each, with Beijing and Paris completing the five most preferred. Frankfurt, Germany was named by 3%. For the wider European picture and the EU AI Act, see AI in dispute resolution in Europe. For the other main European seats, see arbitration in London and arbitration in the Netherlands.²¹

Which institutions run arbitrations in Germany, and under what rules?

The DIS is the leading institution for arbitrations seated in Germany. Its main rules are the 2018 DIS Arbitration Rules, effective 1 March 2018. The cost schedule in Annex 2 was revised to apply from 1 March 2026, and the DIS Integrity Principles took effect on 10 December 2025, but the rules themselves are still the 2018 edition. Parties with international contracts also seat arbitrations in Germany under the International Chamber of Commerce (ICC) Rules; see ICC and AI in arbitration. The DIS also runs mediation, conciliation, adjudication and expert determination, and cooperates with 21 regional German Chambers of Industry and Commerce (the local IHKs) that refer to its rules.^12,13,15

• Caseload in 2025: 218 proceedings in total (158 in 2024); 204 arbitrations, of which 193 ran under the DIS Arbitration Rules; about EUR 3.95 billion in dispute; a median value of EUR 913,320.
• In 2025, English was the language in 62 arbitrations (31%) and German in 138 (69%); a foreign party featured in 65 (32.5%), with 77 countries represented. Frankfurt am Main and Munich led the German seats, with 42 each.¹³

What should the arbitration clause say, and what can be arbitrated?

An arbitration agreement submits present or future disputes from a defined legal relationship to arbitration, as a separate agreement or a contract clause (§ 1029). A German clause should name the seat and the language, because in a DIS case the tribunal fixes both if the parties do not (Arts. 22, 23); under the statute the tribunal fixes the place absent agreement (§ 1043(1)).^1,12

On form, the agreement must be in a signed document or an exchange of communications that gives documentary proof (§ 1031(1)); a consumer needs a personally signed document (§ 1031(5)), and a form defect is cured once a party argues the merits (§ 1031(6)). The arbitration clause is separable: it is treated as an agreement independent of the other contract terms, so a defect in the main contract does not by itself void it (§ 1040(1)). It is also independent of the validity of the parties’ agreements about the arbitration procedure itself, as the Federal Court of Justice held in I ZB 48/24 (Leitsatz 2).^1,16

On what can be arbitrated, any claim involving a property right may be submitted to arbitration; a claim that does not involve a property right can be arbitrated only so far as the parties are entitled to settle it (§ 1030(1)). Disputes over the existence of a residential tenancy in Germany cannot be arbitrated, with a narrow exception (§ 1030(2)), and statutory limits on arbitrability elsewhere in German law are preserved (§ 1030(3)). On the merits, the tribunal applies the law the parties chose, or, absent a choice, the law most closely connected to the dispute. It may decide on what is fair and equitable only if the parties expressly allow it (§ 1051).¹

Confidentiality is not in the statute, so a duty of confidence comes from the parties’ agreement or from the rules they choose, such as the 2018 DIS Rules (Article 44).^1,12

How does a German arbitration run, step by step?

Absent agreement, an arbitration begins on the day the respondent receives the request, and the request must name the parties, state the subject matter and refer to the arbitration agreement (§ 1044). The default tribunal is three arbitrators (§ 1034(1)). Unless the parties agree a method, each side appoints one and those two appoint the chair; if a side does not appoint within one month of a request, or the two cannot agree the chair, a court appoints (§ 1035(3)).¹

The tribunal can rule on its own jurisdiction, and an objection must be raised no later than the statement of defence (§ 1040(1), (2)). The parties must be treated equally and each given a fair hearing (§ 1042(1)). They may set the procedure or adopt an institution’s rules; failing that, the tribunal decides the procedure and how evidence is taken (§ 1042(3), (4)). The award must be in writing and signed, and reasoned unless the parties agree otherwise (§ 1054(1), (2)). Between the parties it has the effect of a “final and binding judgment handed down by a court” (§ 1055). A party can ask the tribunal to correct, interpret or supplement the award within one month (§ 1058).^1,2

In a DIS case the steps run through the rules: a Request for Arbitration (Art. 5), the respondent’s Answer (Art. 7), the tribunal’s constitution (Arts. 10 to 13, and Art. 20 for multi-party cases), a case management conference soon after (Art. 27.2), interim relief from the tribunal (Art. 25), and a DIS review of the draft award before it is finalised (Art. 39.3).¹²

How long does arbitration in Germany take, and what does it cost?

How long arbitration in Germany takes depends on the track, and what it costs depends mainly on the amount in dispute. In a DIS case the tribunal sends its draft award to the DIS in principle within three months of the last hearing or submission (Art. 37). In Expedited Proceedings the final award is due at the latest six months after the conference (Annex 4). The ZPO sets no fixed award deadline for a case run without an institution. We give no average duration, because the only figure in circulation has no published dataset behind it.^1,12

In Expedited Proceedings each party files the Request or Answer plus one further submission, and there is a single hearing the parties can waive (Annex 4).¹²

DIS costs are the arbitrators’ fees plus the DIS administrative fee, both set on the amount in dispute and both before value added tax (Annex 2). The arbitrators’ expenses, any tribunal-appointed expert, and each side’s legal costs are extra. A president or sole arbitrator earns the co-arbitrator fee plus 30%.^12,15

• Worked example, EUR 1,000,000 in dispute, three-member tribunal: each co-arbitrator EUR 28,000 and the president EUR 36,400, so the tribunal is EUR 92,400; the DIS administrative fee is EUR 10,500; the DIS part of the cost is about EUR 102,900, before value added tax, the arbitrators’ expenses and each side’s legal costs. A sole arbitrator would be EUR 46,900.
• Who pays: the tribunal decides in the award how the parties share the costs, taking the outcome into account, and it can award a party its necessary legal costs (§ 1057(1)).^1,12

What role do German courts play during an arbitration?

A German court must dismiss a court claim covered by an arbitration agreement as inadmissible if the respondent objects before the hearing on the merits, unless the agreement is “null and void, ineffective or incapable of being performed” (§ 1032(1)). Before the tribunal is formed, a party can ask the court to rule on whether the arbitration is admissible (§ 1032(2)), and the arbitration may begin or carry on while that is pending (§ 1032(3)).^1,2

Going to the tribunal does not waive a jurisdiction objection. In I ZB 48/24, the Federal Court of Justice held that bringing the arbitration claim does not stop a party from applying under § 1032(2) for a ruling that the arbitration is inadmissible on grounds other than a form defect, and is no waiver of the right to raise the tribunal’s lack of jurisdiction before the court (Leitsatz 1).¹⁶

Courts can also help. A court-ordered interim or protective measure is compatible with an arbitration agreement (§ 1033); the tribunal may order interim measures itself, which a court can then permit to be enforced (§ 1041); and a court can assist in taking evidence (§ 1050). The competent court for appointment, jurisdiction, set-aside and enforcement is the Higher Regional Court, the Oberlandesgericht (§ 1062(1)).¹

Can you appeal or set aside an arbitral award in Germany?

There is no appeal against a German award, on the merits or on a point of law. The only remedy is an application to set aside the award (§ 1059(1)). Set aside means a court at the seat cancels the award. The application must be made within three months of receiving the award, unless the parties agree otherwise, and it is barred once a German court has declared the award enforceable (§ 1059(3)).¹

The grounds track article 34 of the Model Law. On a party’s application, an award can be set aside on these grounds (§ 1059(2) no. 1):¹

• a party lacked capacity, or the arbitration agreement was invalid;
• a party had no proper notice of the arbitrator’s appointment or the proceedings, or could not present its case;
• the award goes beyond the submission, and a severable excess part can be set aside on its own; or
• the tribunal’s composition or the procedure broke the rules in a way that affected the award.¹

The court itself can set an award aside where the subject matter is not arbitrable under German law, or where enforcing it would conflict with public policy, the “ordre public” (§ 1059(2) no. 2).¹

A court can set aside part of an award where the flawed part is severable (§ 1059(2) no. 1(c)), and in a suitable case, on a party’s request, it can set the award aside and send the matter back to the tribunal (§ 1059(4)). The application is heard by the Higher Regional Court (§ 1062(1)).¹

How are arbitral awards enforced in and from Germany?

A German award is enforced at home after a court declares it enforceable (§ 1060(1)). The court refuses the declaration, and sets the award aside, if a set-aside ground under § 1059(2) applies (§ 1060(2)). Foreign awards are recognised and enforced under the New York Convention, with other treaties left unaffected (§ 1061(1)).¹

A German award is enforced abroad under the New York Convention, the 1958 treaty on recognising and enforcing foreign arbitral awards, which has 172 parties; see New York Convention grounds. Germany ratified it on 30 June 1961, in force from 28 September 1961, and the UNCITRAL status table shows no reservation. For cross-border enforcement, see AI and award enforcement.¹⁹

What changed recently in Germany, and what is pending?

Two instruments changed German arbitration law, and they are at different stages: one is in force, the other is still a bill. The one in force is the Act to Strengthen Germany as a Place of Justice (Justizstandort-Stärkungsgesetz) of 7 October 2024, which took effect on 1 April 2025. It added § 119b of the Courts Constitution Act (GVG), letting a Land set up a Commercial Court at a Higher Regional Court for business disputes of EUR 500,000 or more where the parties agree. It also added §§ 184a and 184b GVG, under which selected proceedings, and an appeal to the Federal Court of Justice, can run entirely in English.^3,4,5,6

The second is a bill, not yet law: the Act on the Modernisation of Arbitration Law. A first government bill (BT-Drucksache 20/13257) was introduced in 2024 and lapsed when the electoral term ended; the Federal Ministry of Justice resumed the work on 27 January 2026. A new government bill (BT-Drucksache 21/8414, dated 7 October 2026) had its first reading in the Bundestag on 16 October 2026 and was referred to the Committee on Legal Affairs and Consumer Protection. As of 30 October 2026 it is pending, and it would enter into force the day after promulgation.^7,8,9,10

The bill would ease the form of the arbitration agreement (§ 1031), allow video hearings and electronic awards, and open arbitration-related court proceedings to English. It would also let a tribunal publish an award in anonymised form with the parties’ consent (a new § 1054b), where consent is treated as given if a party does not object within three months, and allow dissenting opinions (a new § 1054a). The DIS and the national umbrella body, the German Chamber of Industry and Commerce (DIHK), back the reform and, in a joint statement of 26 February 2026, proposed a clarification following the decision of 9 January 2025 (I ZB 48/24).^7,10,11

What does Germany say about AI in arbitration?

No rule yet governs AI in arbitration in Germany. The 2018 DIS Rules do not mention it, and the DIS has published no AI rule or guidance; a DIS practice-group report on the 2018 Rules discusses AI tools, but that is a working-group report, not a rule. The DIS signed, with other arbitral institutions, a joint submission to the EU AI Office on 23 July 2026 about the draft high-risk classification guidelines. See the AI rules tracker and AI in arbitration.^{12,23,24,25,26,27,28,29}

From 2 August 2026, the EU AI Act (Regulation (EU) 2024/1689) can treat AI that helps a court or an alternative dispute resolution body decide a case with legal effects as high-risk (Annex III point 8(a)). For how the Act applies to arbitration, including the reach to seats, see AI in dispute resolution in Europe and the EU AI Act in dispute resolution.²²

What Germany has said about AI is on the court side, not arbitration. The Justice Ministers of the Federation and the Länder adopted a Joint Declaration on the Use of AI in the Justice System in June 2025, whose core line is that “final decision-making must remain a human-controlled activity”. The Federal Bar (BRAK) issued guidance for lawyers in December 2024 on using AI, covering independent review of the output and confidentiality. Both are for judges and lawyers, not for arbitral tribunals. On a tribunal’s duty not to hand its decision to anyone else, see non-delegation; on invented citations, hallucination.^17,18

What is still open in German arbitration?

• Whether and when the Modernisation bill (BT-Drucksache 21/8414) is enacted, and in what final form.
• Whether the proposed English-language court route in arbitration-related proceedings and the optional award publication under § 1054b take effect.
• How widely the Länder open Commercial Courts and English-language proceedings under §§ 119b and 184a GVG in practice.
• Whether the DIS publishes any AI rule or guidance. We found none as of 30 October 2026.^3,4,7,12,23