Transparency Registers: What Owners of a Foreign Company Must Report

The company is registered abroad, the owner lives in Germany or Austria, and when the account is opened, the bank asks about the “beneficial owner”. By then at the latest it becomes clear: behind every company there is a natural person, and governments want to know who that is. This is what the transparency register in Germany, the Register of Beneficial Owners in Austria and comparable registers in practically every country of incorporation are for. For owners of a foreign company, one question matters above all: in which register must their company be entered, and when does a German or Austrian register come into play as well?

Who counts as a beneficial owner

A beneficial owner is the natural person who ultimately owns or controls a company. For companies, under § 3 Abs. 2 of the German Money Laundering Act (Geldwäschegesetz, GwG), this is any natural person who directly or indirectly holds more than 25% of the capital, controls more than 25% of the voting rights or exercises control in a comparable way. If no such person can be identified, the legal representative or managing partner counts as the beneficial owner. Austria uses the same threshold of more than 25% (§ 2 WiEReG). Anyone who forms and holds a company alone is therefore always the beneficial owner themselves.

When a foreign company must be entered in the German transparency register

The German transparency register essentially covers companies with their registered office in Germany. An entity based abroad must be entered in the German register only in certain cases: when it owns real estate in Germany or undertakes to acquire it, or when shares in a property-holding company within the meaning of § 1 Abs. 3 or 3a of the Real Estate Transfer Tax Act (Grunderwerbsteuergesetz) are combined in its hands (§ 20 Abs. 1 Satz 2 GwG). This also applies to property that is already held.

An important exception concerns companies from the EU: the obligation does not apply if the information has already been submitted to the register of another Member State (§ 20 Abs. 1 Satz 3 GwG). A Bulgarian EOOD or Estonian OÜ that is correctly reported in its home register therefore does not have to register in addition, even when buying a flat in Germany. A US LLC or a company from the Emirates, on the other hand, does. If it fails to meet this obligation, the notary must refuse to notarise the deed (§ 10 Abs. 9 Satz 4 GwG); a property purchase then falls through at the notary appointment.

Austria: the Register of Beneficial Owners

In Austria, the reporting obligations are governed by the Beneficial Owners Register Act (Wirtschaftliche Eigentümer Registergesetz, WiEReG). It essentially covers legal entities with their seat in Austria. Foreign legal entities with their seat outside the EU and EEA become subject to reporting if they undertake to acquire real property in Austria (§ 1 Abs. 2 Z 19 WiEReG). A newly registered company must report its beneficial owners within four weeks (§ 5 Abs. 1 WiEReG), and the information must be reviewed at least once a year (§ 3 Abs. 3 WiEReG).

The register in the company’s home country

Independently of Germany and Austria, the company’s home country usually also requires information on the beneficial owners. All EU Member States keep central registers under the Anti-Money Laundering Directive, including Bulgaria, Estonia, Cyprus and Hungary. Outside the EU, the rules differ considerably:

• United Arab Emirates: Under Cabinet Decision No. 109 of 2023, a beneficial owner is anyone who holds 25% or more or otherwise controls the company. The company keeps its own register, updates it within 15 days of a change and files it with the competent registrar. The financial free zones DIFC and ADGM have their own rules.
• USA: The reporting obligation under the Corporate Transparency Act no longer applies to companies formed in the USA. With a final rule in force since 14 August 2026, the authority FinCEN has permanently lifted the obligation for US companies. A US LLC owned by a founder from Germany or Austria therefore does not currently have to report any beneficial owners there. Only foreign companies registered to do business in the USA remain subject to reporting.

Discrepancies: banks and advisers report too

An entry alone is not enough; it has to be correct too. Banks, notaries, tax advisers and other advisers who are obliged entities under the Money Laundering Act must, as a rule, report discrepancies between the register and their own findings without delay (§ 23a GwG); exceptions apply to lawyers and tax advisers where information is subject to professional confidentiality. The register extract then visibly shows that the information is being checked. Such a note will be noticed at the next account opening at the latest.

Who may inspect the registers

Until 2022, the registers in the EU were open to anyone. On 22 November 2022, the Court of Justice of the European Union declared this access invalid because it was not limited to what is strictly necessary (joined cases C-37/20 and C-601/20). Today, in Germany only those who are entitled to do so may inspect the register: authorities, obliged entities in the course of their due diligence and persons with a demonstrated legitimate interest (§ 23 GwG). In Austria, a comparable rule has applied since 1 September 2023.

Fines for breaches

Anyone who breaches their reporting obligations commits an administrative offence. In Germany, § 56 GwG provides for fines of up to €150,000 for intentional breaches, and for serious, repeated or systematic breaches up to €1 million or twice the economic benefit derived from them. In Austria, it is a fiscal offence that can be punished, if committed intentionally, with a fine of up to €200,000 (§ 15 WiEReG). In Germany, final decisions imposing fines are also published (§ 57 GwG).

From 2027: new EU rules for companies from third countries

With the EU Anti-Money Laundering Regulation (Regulation (EU) 2024/1624, AMLR), new EU rules will apply from 10 July 2027 that harmonise the requirements across the EU. Two changes are particularly relevant for owners of foreign companies. First, anyone holding 25% or more will then count as a beneficial owner, so the threshold is already reached at exactly 25%. Second, companies from third countries, that is, companies formed outside the EU, must report their beneficial owners in the EU if they acquire real estate in the EU (Art. 67 AMLR). The same applies, among other things, to the acquisition of certain luxury goods such as vehicles, yachts or aircraft, and to public contracts. Entering into a business relationship, such as opening an account with a bank in the EU, can also trigger a reporting obligation, but only where the risk assessment of the EU or of the Member State classifies the sector concerned as medium-high or high risk. For a US LLC or a company from the Emirates with a European business account, this question should therefore be clarified well before July 2027.

Checklist for owners of a foreign company

What owners of a foreign company should check can be summed up in a short checklist:

• Is the company correctly and currently reported in the register of its home country?
• Does the company hold or acquire real estate in Germany or Austria? If so, clarify the reporting obligation before the notary appointment.
• Does the information given to the bank, notary and tax adviser match the register?
• For companies outside the EU: make a note of the changes from July 2027 in good time.

The transparency register is only one piece of the puzzle. Which tax questions arise with a foreign company is explained in the article “Forming a Company Abroad: Seven Myths Every Founder Should Know”. What a US LLC must report to the IRS every year is covered in “Form 5472: What Owners of a US LLC Must Report to the IRS”.

Frequently asked questions about the transparency register

Frequently asked questions about the transparency register and foreign companies:

This article is for general information only and does not replace legal or tax advice. Last reviewed: October 2026.