In the past year, the focus of international space law, as observed from a German perspective, was (still) on the topics of Space Debris and Space Traffic Management. It can be highlighted that in May 2025, a Manual on International Space Laws was published by the Institute of Air, Cyber and Space Law at the University of Cologne. The Manual is the result of more than two years’ work of more than 40 experts from various countries.
Germany still awaits its first ever Space Law. A cornerstone of a draft was published by the previous German government in late 2024. However, due to the change of government, this had, at the time of writing, not been followed up by full draft legislation. Based on the 2024 drafts, the scope and content of the German Space Law was planned to be not much different from the space laws of other European countries, with some differences in the details. It is widely expected that the new German government will leave its own footprint in a (new) draft, also taking into account the draft EU Space Act published by the European Commission on 25 June 2025.
A further significant change regarding German legislation was the re-organisation of a former education and research ministry into the new Ministry of Technology, Research and Space. This, supplemented by detailed space ambitions described in the coalition agreement between the parties forming the new German government, leads to carefully, but widely voiced hopes of much stronger and more purposeful support of the German space sector and the German space industry. Emerging information on the plans of the new German government regarding a significant increase in the contribution to the European Space Agency (ESA) underlines these hopes.
For more details regarding the above, please refer to the Germany Trends & Developments chapter in this guide.
The overall picture regarding space activities in and beyond Germany is characterised by:
The NewSpace economy is still largely reliant on state and institutional ultimate end users. However, reports from renowned analysts suggest that at least the data-based and satellite-based economy is, to a large degree, self-sustaining. In addition, European and German national institutions are trying to push the commercialisation aspects of space tech in various sectors, through targeted programmes to facilitate the development of a self-sustaining economy. The “Vision for the European Space Economy”, published by the EU Commission on 25 June 2025, not only confirms the foregoing but is by far the boldest and most far-reaching confirmation of the intent of the European Union, of which Germany is a leading player.
The international legal framework can, from an EU perspective, be described as follows.
The foregoing has, for some months, been strongly influenced by growing concerns regarding security and technology autonomy of Europe and Germany. Please see the Germany Trends & Developments chapter in this guide for more detail.
The German space industry has a long history and is known for its capacity for engineering, base research capabilities and technological leadership. Between 2016 and 2020, Germany was ranked fifth worldwide with respect to issuing space-related patent applications, accounting for around 8% of applications globally.
According to data from the German Aerospace Industry Association (Bundesverband der Deutschen Luft- und Raumfahrtindustrie e.V., BDLI), German space-related commercial revenues totalled EUR2.6 billion in 2022. The number of students beginning air and space technology degrees at German technical universities is noticeably increasing.
Germany’s research institutions for space and Germany’s space businesses are known for their focus on base research as well as manufacture of components, and complete systems for general space applications. The German space industry is one of the most important partners for the operation of the European satellite navigation system Galileo. In addition, the German space industry is significantly involved in the development and production of components for the European Earth observation system Copernicus and several of the Sentinel satellites used for this purpose have been integrated by German manufacturers. In addition, German corporations are involved in the development and production of parts for the Artemis mission and are partners in one of the successors of the International Space Station (ISS).
Besides established companies, the German space industry consists also of a growing number of small and medium-sized enterprises as well as a prolific start-up scene with – in 2023 – the highest number of such endeavors in the EU. These start-ups are often connected to technical universities.
The German government, through the German Space Agency (Deutsches Zentrum für Luft und Raumfahrt, DLR) supports research and commercialisation. Furthermore, German federal states (Bundesländer) have their own space-related grants and programmes. In addition, universities facilitate research projects. Finally, there are four ESA Business Incubation Centres already active in Germany and a number of further acceleration and incubation centres. The landscape for incubation and acceleration is wide and dense.
Regarding launch systems, 2024 has already seen a successful test start by one of the three bigger German launching start-ups and is expected to see test starts from two German competitors in 2024. There are also plans to establish a mobile launch system in the North Sea so that Germany will, in future, possibly have access to certain orbits from within its exclusive economic zone.
Please see the Germany Trends & Developments chapter in this guide for more detail regarding the important and influential trend to defence and dual use.
Legislation
The German legal system is based on civil law. Germany currently does not have its own designated “Space Law” yet. The applicable regulations on Space Projects are therefore scattered throughout non-space-specific national laws and international law.
The regulatory landscape in Germany is therefore patchy:
In addition, the draft EUSA (see 1.1 International Legal and Regulatory Developments) was published on 25 June 2025.
Case Law
Case law as such plays no role in Germany.
Germany acts as a regulator with respect to the assignment and licensing of orbits and frequencies, aviation law, rules governing the use of satellite data, the implementation of ratified international laws and treaties and the further specific and generally applicable legislation.
Germany is a participant in space activities through its memberships in the ESA, of which Germany is one of the founding members and the biggest funding contributor in 2024, and through its participation in the European Union Agency for the Space Programme). ESA astronauts are trained partly in Germany and German astronauts have visited the Russian space station MIR and the ISS. Germany actively participates in space exploration (Mars Express and Rosetta Missions) and the Artemis programme.
The German state facilitates space activities by means of funding the ESA and the DLR and through its National Programme for Space and Innovation (Nationales Programm für Weltraum und Innovation, NPWI), which is managed by the DLR. In addition, Germany is a facilitator of international collaboration. Finally, Germany provides infrastructure support for space launches, satellite operations and research activities and hosts ground stations for communication with satellites in orbit.
After the election and since April 2025, space activities fall within the overall responsibility of the re-organised Federal Ministry for Research, Technology and Space. Space-related measures are taken through the DLR.
The DLR is the acting space agency of Germany and is responsible for preparing German space planning and for implementing the German space programme, as well as representing German space interests in the international area. To achieve these goals, among other things, the DLR develops and manages, co-ordinates technology and space-related projects and independently performs functions in the administration of government-funded subsidies.
The DLR employs around 11,000 individuals. It has 55 different institutes and subsidiaries and numerous other test and operating facilities at a total of 30 locations in Germany and four foreign offices. The DLR’s budget for its own research and development work and for operational tasks amounts to an aggregate of more than EUR1.37 billion per financial year.
As outlined above and in particular in theGermany Trends & Developments chapter in this guide, the 2025-elected German government has announced much bigger ambitions and a more specific focus on space than in the past and even re-organised an already-existing Ministry into a Ministry for Technology, Research and Space. The coalition agreement of the now-ruling parties has complemented this by outlining the importance of the space sector for Germany’s security and economic prospects.
In Germany there is still no comprehensive general space law governing space activities. This absence means there is no overall and binding licensing process or system of supervision in place for space activities in general.
The DLR attempts to gather and relay necessary information to the United Nations Office for Outer Space Affairs (UNOOSA), but the above-mentioned legislative gap creates legal uncertainties in various areas.
For certain very specific space activities, however, there are established authorisation frameworks.
Please see the Germany Trends & Developments chapter in this guide for more detail regarding a German Space Law and the 2024 cornerstones.
Radio Frequencies
The use of frequencies is regulated by the TKG. Individuals or entities residing in Germany or having their registered office therein, who want to use frequencies through space objects, are subject to the obligations arising from the Constitution and Convention of the International Telecommunication Union (ITU).
The Federal Network Agency (Bundesnetzagentur, BNetzA) is responsible for allocating and managing radio frequencies and orbits and co-ordination with the ITU regarding applications from Germany. This includes satellite communications, Earth observation, and navigation systems.
Frequency and Orbital Slot Allocation
The BNetzA carries out the registration, co-ordination, and notification of satellite systems with the ITU upon request and transfers the resulting rights to use frequencies and orbits to the applicant.
The transfer of usage rights requires that frequencies and orbits are available for use, that there is compatibility with other frequency uses and other registrations of satellite systems and that public or third-party interests are not impaired.
The details of the application process are regulated in the Administrative Regulations for the Registration, Coordination and Notification of Satellite Systems (Verwaltungsvorschrift für die Anmeldung, Koordinierung und Notifizierung von Satellitensystemen im deutschen Namen und für die Übertragung der Orbit- und Frequenznutzungsrechte, VVSatSys)
The required procedures include inter alia:
Conflict Resolution in Cases of Interference
Space operators must apply to BNetzA for radio frequency use and orbits as outlined above. The BNetzA registers, co-ordinates, and notifies the ITU of the systems and plans, and assigns the corresponding orbit and frequency usage rights to the applicant.
Moreover, the BNetzA monitors frequency utilisation, as stated in Section 103, paragraph 1 of the TKG. To maintain effective frequency regulation, the BNetzA has the authority to issue orders that restrict or stop the operation of devices if necessary.
The decisions of the BNetzA on the assignment of frequency and orbit rights or on restrictions are issued by way of administrative acts, including decisions on infringements.
Germany lacks a dedicated rocket launch site, largely due to its relatively short and densely populated coastline. Launching rockets over the ocean minimises the risk to human populations and infrastructure. In the event of a failure or explosion during the launch, debris is more likely to fall into the sea, reducing the potential for casualties and damage.
Therefore, current plans include launching rockets from a floating platform in the North Sea. This offshore site is managed by the German Offshore Space Alliance (GOSA) and represents a significant step in the commercial development of Germany’s launch capabilities. The coalition agreement of the new German government emphasises the importance of a German launch side and implies that the new German government will follow up on the offshore-platform plans.
The role of the state in launching space assets has largely been through the legislature (through the applicability of the LuftVG and applicable other general laws, such as the TKG and the Satellite Data Security Act). Further, through its ground stations and through services provided by the DLR and by grants and permits, the role of Germany is also that of a facilitator.
Finally, the German state is also a user of launch services in the sense that, for instance, satellites of the German armed forces, are procured and launched with services from private actors (and in the future potentially with the help of German micro launchers).
Space Treaties to Which Germany is a Party
Germany is a party to the four principal UN space treaties: the OST, the so-called Rescue Agreement (ratified 17 February 1972), the Liability Convention (ratified 18 December 1975), and the Registration Convention (16 October 1979). Germany is not a party to the Moon Agreement.
In addition, Germany is party to the following international treaties and agreements:
Committee on the Peaceful Uses of Outer Space
Germany is a member of the Committee on the Peaceful Uses of Outer Space (COPUOS). Germany contributes expertise, shares best practices, and collaborates to address key issues such as space debris mitigation and space observation and exploration.
International Law and Private Liability
According to Article 25 of the German Constitution (Grundgesetz, GG), the general rules of international law shall be an integral part of federal law, shall take precedence over other laws and directly create rights and duties for the inhabitants of the federal territory. For certain international treaties, Article 59 paragraph 2 sentence 1 of the GG requires the participation of the Bundesrat and Bundestag in the form of a “treaty law” prior to ratification by Germany. International treaties have been ratified (or not ratified) as outlined above.
The UN Space Debris Mitigation Guidelines are applicable to Germany, but there is no implementation into national law and so the guidelines are not legally binding. In the absence of a liability regime, the German state will therefore be fully liable in accordance with Article VII of the Outer Space Treaty without clear path for reimbursement from the space operator.
Due Regard
Germany has not adopted a national space law that would define and implement in detail – beyond general obligations from international law – the principle of due regard from international treaties such as the OST and the Liability Convention (1972), to which Germany is a party.
Manual for International Law on Space Traffic Management
While not being a governmental or legislative act as such, it must be highlighted that only very recently a first Manual providing guidelines for international legislation on Space Traffic Management has been published in Germany. This Manual is the work of more than 40 experts from various countries and aims to provide the legislature with Guidelines for the regulation of Space Traffic Management.
Besides the – to a certain extent – applicable LuftVG and general applicable law, Germany has no specific national space-related laws or legal instruments regarding prevention or indemnification of damage specifically caused by space activities. There are also no specific mandatory insurance requirements for space operators under German law.
However, if space objects are airborne and are therefore considered aircraft under the LuftVG, liability insurance to cover liability for damages due to the death, bodily harm or damage to the health of an individual not carried in the aircraft and the destruction or damage to an item not carried in the aircraft is mandatory according to Section 2 of the Air Traffic Act.
Scope of Coverage and Liability Caps
While there is no specific law dedicated to insurance for space activities, space operators must adhere to general insurance principles outlined in relevant legislation and will in general require:
Typical exclusions are the results from war, anti-object devices, willful acts (including interference) and unlawful seizure or control. Third-party liability and loss of revenue are, in certain cases, also excluded, depending on the space asset and insurer in question.
The Space Liability Convention, to which Germany is a party, does not provide for a maximum liability limit. Further, Germany, in the absence of a general national law, does not provide for liability thresholds. As a result, provisions in contractual agreements are the main source of liability thresholds and caps between the parties to such agreements.
Risks and Premiums
The insurance market for space activities is an international one led by only a few insurers (including reinsurers) and international insurance brokers. The insurance market is particularly difficult for new space operators with as yet unproven technologies, leading to restrictions on the availability of insurance.
Risks are assessed based on technical factors and commercial/external factors, such as mission criteria, technical complexity, launch vehicle and technical history, redundancy, margins and single point failures, as well as on insured sum, loss criteria and the general market conditions.
It is a specific feature of the space insurance market that each insurer assesses the specific risks based on its own due diligence and data, which suggests inefficiencies in terms of the cost of a typical insurance policy involving a consortium of insurers.
Germany has an existing legal framework for very-high-altitude (VHA) operations, though it is not space-specific. VHA flights, such as stratospheric balloons and high-altitude pseudo-satellites (HAPS), are currently regulated as aviation operations, not space activities.
The German Air Traffic Act (LuftVG), states in Section 1(2) that “Spacecraft, rockets and similar missiles are considered aircraft as long as they are in the airspace”, meaning stratospheric vehicles must comply with civil aviation rules. This includes authorisations from the German Federal Aviation Office (Luftfahrt-Bundesamt, LBA) and co-ordination with German Air Traffic Control (Deutsche Flugsicherung, DFS).
Although there is no separate legal regime for “near-space”, discussions continue at EU and ICAO level, especially through EASA’s “Higher Airspace Operations” initiative. Germany aligns its policy accordingly but has not introduced new legislation yet.
Space Activities
The launch of a space object will require the permission of the local aviation authority, since the LuftVG requires the compulsory use of airfields for any “aircraft”, a category which also includes space vehicles, and the establishment of an airfield requires a permit.
Apart from that, general law with its restrictions and requirements applies. There are not yet any laws specifically restricting activities in areas such as healthcare and life sciences, agri-food, mobility, the environment or energy. For instance, remote treatment (telemedicine) is not generally excluded, but the discussions around this topic have not yet focused on space. These topics are seen as areas where the commercialisation of space technology has huge potential, for example, when it comes to crop monitoring, precision farming techniques and environmental monitoring, accuracy of navigation and autonomous vehicles, safety of maritime transport, environmental monitoring and pharmaceutical developments in space.
Data Processing
In Germany, the Act on Satellite Data Security (SatDSiG) was implemented on 1 December 2007. This legislation aims to ensure that earth observation data from high-quality German satellites does not compromise the national security of Germany or its allies. According to the SatDSiG, supplemented by the Satellite Data Security Ordinance (SatDSiV), if a space-based remote sensing system (usually a satellite equipped with remote sensing sensors) is classified as a high-quality system, both the satellite operator and the data supplier must each obtain approval from the German authorities. The Federal Office for Economic Affairs and Export Control (BAFA) serves as the competent authority for granting these approvals. The technical criteria determining which satellites are subject to SatDSiG are outlined in the SatDSiV. Furthermore, the SatDSiG also governs data providers wishing to distribute earth observation data, requiring them to obtain a licence.
Presently, the SatDSiG’s scope is relatively narrow, affecting only two German satellites, both operated by the DLR. Additionally, the regulation applies to two German data providers: the DLR’s data centre for scientific data use, and Airbus DS Geo GmbH, which has commercial rights to the data.
Cybersecurity
Neither the EU nor Germany have regulations on cybersecurity that specifically relate to space activities. However, there are several general cybersecurity rules that apply to companies active in the space sector and to some products used in space applications.
The NIS 2 Directive (Directive (EU) 2022/2555) aims to achieve a high level of cybersecurity across the EU. It does not apply directly but must be implemented into national law by the member states. NIS2 explicitly includes the space sector as a high-critical area and assigns entities to different categories of importance; the more critical the entity, the more obligations it must meet. Germany is in the process of transposing NIS2 through draft legislation (NIS2-Umsetzungsgesetz, KRITIS-Dachgesetz), which is expected to bring space operators under formal cybersecurity obligations.
Another relevant cybersecurity regulation at EU level is the Cyber Resilience Act (CRA), which affects entities that bring products or software with a digital component to the EU market. The products must then undergo a conformity assessment. The higher the risk category of the product, the higher are the requirements that must be met.
In Germany, cybersecurity is primarily regulated in the Act on the Federal Office for Information Security (BSIG). In addition, the Federal Office for Information Security (BSI) has published guidelines on cybersecurity to minimise the risk of non-compliance with IT regulations. Published BSI Standards include requirements and recommendations for securing company data and systems, as well as a guide for implementing high IT security and data protection standards. Information security is thus, in general, achieved through a combination of the BSI Standards for establishing an information security management system (ISMS) and the implementation of the IT basic protection modules from the IT-Grundschutz Kompendium. These basic protection modules form the basis for the international ISO 27001 certification. The standard outlines the requirements for assessing and treating information security risks; addressing controls related to the security of data; and ensuring the confidentiality, integrity, and availability of information. Organisations certified under ISO 27001 demonstrate their commitment to robust information security practices and regulatory compliance. For a detailed overview of space-specific cybersecurity guidance (including BSI’s TR-03184 guidelines) and the forthcoming NIS2 transposition, see 4.3 Cybersecurity and Space.
Since Germany has no general space law yet, “non-interference” and “harmful interference” are dealt with on the basis of the OST, other applicable international law and on the basis of various sector-specific laws, in particular the TKG as discussed in 2.5 Role of the State in Co-Ordinating the Use of Radio Frequencies and Orbital Slots.
Germany provides for a space objects register as part of the general aircraft register (Luftfahrzeugrolle der Bundesrepublik Deutschland – Band R: Raumfahrzeuge), which is administrated by the German Aviation Authority (Luftfahrtbundesamt, LBA). Commercial space operators can, but are not obliged to, register their objects with the LBA or to disclose any information with respect to their space objects.
Further, Germany, as a member of both the EU and the ESA, is engaged in various EU and ESA measurers, including those pertaining to space situational awareness (SSA) and space traffic management (STM), which are currently the focus of German and European discussions. German space operators participate in SSA initiatives to monitor space objects, including sharing orbital data and informing on and issuing collision avoidance maneuvers. Germany also co-ordinates with international partners in the realm of STM.
The whole area of space safety will be materially governed by the EUSA once it is final and has come into effect.
Due to the lack of a specific German space law, space operators’ duties and obligations are based on general laws and the principles foreseen in international treaties and multinational agreements if and to the extent applicable in Germany.
The following particulars are all strongly influenced by the draft EUSA, which was published on 25 June 2025, once it is final and has come into effect.
ESG
Germany has no space-specific ESG guidelines (yet). The overall German ESG landscape, however, applies to space activities, introducing ESG guidelines and environmental obligations.
German environmental laws generally apply regarding the impact of any kind of activities on Earth. In particular, the German Emission Control Act (Bundesimmissionsschutzverordnung, BImSchV) and other general legislation applies regarding launches, re-entry and in general regarding the environmental impact of the activities.
German national industry initiatives aim to foster environmental goals, in particular the German Space Strategy commitments to sustainability and responsibility, various specific industry initiatives and (for instance) the (self-commitment) of the DLR regarding sustainable behaviour.
New Space Debris and Areas of Special Interest
There is no binding space-specific national regulation regarding environmental impact. However, besides the aforementioned principles, German entities are expected (but not bound) to follow best practice by adhering to ISO Standards ISO 24113 – Space Debris Mitigation Systems and to follow international law obligations.
Intellectual Property and Space
There are no specific intellectual property rules targeting space as such in Germany. As a rule, the general German and EU IP protection laws apply also to all space activities; however, their application and enforcement regarding certain space-related questions is difficult and not yet fully clarified.
Outer space, including celestial bodies such as the Moon and Mars, is considered a domain beyond national appropriation as per the OST. This leads to the question of the extrajudicial nature of IP rights in space.
Given the challenges of enforcing IP rights in space, many space-related projects use contractual agreements to manage IP. These agreements can specify ownership, usage rights and dispute resolution mechanisms for IP created or used in space activities between the parties. They are not capable, however, of establishing objective rights. Nonetheless, organisations such as the ESA work within frameworks that respect the IP laws of participating countries. In practice, IP protection for space activities is typically managed through a combination of national/regional IP registrations, international treaties, and contractual agreements among collaborating entities.
Processing, Protection and Access
Germany regulates space data under both general and space-specific frameworks. Where satellite systems generate personal data (such as identifiable imagery), the EU General Data Protection Regulation (GDPR) and the Federal Data Protection Act (BDSG) apply. These laws require lawful collection, data minimisation, secure processing and protection of individual rights.
For non-personal space data (eg, most Earth observation data), protection is governed by general rules on intellectual property, trade secrets and IT security. The German Satellite Data Security Act (SatDSiG) provides a specialised framework for high-resolution data. It mandates licensing of operators, protective measures for data handling, and sensitivity checks prior to first-time distribution of imagery. The aim is to prevent distribution that could harm Germany’s national security or foreign policy interests.
State Control Over Space Data
German legislation does contain provisions giving the state a role in controlling access to space data. Under SatDSiG, any “data distribution” is subject to conditions and potential review. The Federal Office of Economics and Export Control (BAFA) is designated as the competent authority enforcing this Act. Operators must self-assess whether requested satellite data may be sensitive due to its resolution, geographic scope, timeliness or end-user profile. If flagged, the operator must seek government authorisation before releasing the data.
BAFA then conducts a case-by-case national security review and may approve, condition, or deny distribution. There is no fixed resolution threshold, but greater detail triggers stricter scrutiny. This dual system; ie, industry self-check with governmental oversight, gives the state effective veto power over sensitive civilian satellite imagery.
B2B Space Data Handling
B2B handling of space data in Germany is primarily governed by contract law and general regulatory frameworks. Companies are generally free to exchange non-sensitive data unless limited by SatDSiG or GDPR. If the data includes personal information (eg, satellite communications or identifiable images), GDPR obligations such as data security, transparency and lawful processing apply.
There is no specific statute mandating interoperability or sharing between private parties. However, government-funded programmes often promote open data or data partnerships. Many companies voluntarily adopt technical standards, such as those from the Open Geospatial Consortium (OGC), to ensure interoperability across providers. EU-level frameworks like the Data Governance Act and the upcoming Data Act also aim to facilitate secure and standardised data exchange, which may influence space-sector practices.
Security expectations under the German IT Security Act and guidance from the Federal Office for Information Security (BSI) also apply, especially where space infrastructure qualifies as critical infrastructure.
Transfers to Third Countries
Transferring personal satellite data outside the EU must comply with GDPR Chapter V, using mechanisms such as standard contractual clauses or other recognised safeguards. If the space data includes high-grade imagery, SatDSiG imposes additional requirements: data providers must evaluate foreign requests and obtain BAFA authorisation if the transfer raises national security concerns.
Beyond SatDSiG, general export control laws such as the Foreign Trade and Payments Act and relevant EU dual-use regulations may apply to certain technologies or data formats. However, in practice, SatDSiG is the primary legal instrument controlling the export of high-resolution satellite imagery.
Legal Governance of Space Data Spaces
Germany does not have legislation that specifically defines or governs “space data spaces” as a distinct legal category. Instead, these platforms operate under general legal frameworks such as the General Data Protection Regulation (GDPR), the Satellite Data Security Act (SatDSiG), intellectual property law and export controls. Where public data is involved, rules under the EU Open Data Directive may also apply. Governance of these spaces is typically implemented through contracts, user agreements and agency mandates.
At the European level, Germany is actively engaged in the development of the European Space Data Space, led by the European Commission and ESA. Through institutions like the German Aerospace Centre (Deutsches Zentrum für Luft- und Raumfahrt, DLR) and participation in stakeholder forums, Germany contributes to the blueprint being prepared for the Commission. EU-level rules such as the Data Governance Act, Data Act and NIS2 Directive, are expected to shape the technical and legal frameworks for national and European data spaces, including space-related platforms.
Corporate Forms and Governance
Since there is no one legal model for a “space data space”, various organisational forms are possible in Germany. Many are government-driven projects managed by agencies or research centres, while others could be consortia of private companies. For instance, a national space data platform might be operated by the DLR on behalf of the government, possibly through contracts with IT providers, rather than as an independent legal entity. DLR itself is a statutory body (eingetragener Verein) that can host data platforms under its institutional umbrella. Another model is a public-private partnership (PPP): the platform’s infrastructure might be provided by commercial contractors but overseen by government authorities. In some cases, a private company or consortium might establish a data space voluntarily (eg, Airbus establishing an aerospace data space via a consortium); that would likely take the form of a contractual alliance or a new joint venture, governed by corporate and contract law.
Governance rules for such data spaces are typically set out in usage agreements, statutes or partnership contracts. They define the stakeholders’ roles (eg, which agency or company is responsible for operations, who ensures security compliance, who finances the infrastructure), the data licensing conditions and access policies.
National Space Data Platforms
Germany hosts key national data spaces, notably the following.
Interaction with European Space Data Spaces
Germany’s platforms, particularly CODE-DE, are integrated into the broader Copernicus ecosystem and are expected to serve as nodes in the upcoming European Space Data Space. Germany is helping shape the governance, technical interoperability and policy frameworks of this EU initiative. Through efforts like Gaia-X and ESA working groups, German stakeholders contribute to building a federated infrastructure that aligns national and European data strategies.
Cybersecurity for Ground, Orbit and Communication Links
Germany’s space infrastructure is protected under national cybersecurity laws, particularly for ground segments like control centers and data facilities, which are classified as critical infrastructure. Operators must comply with the BSI Act (BSIG), the IT Security Act and BSI’s Critical Infrastructure Ordinance, requiring firewalls, encryption, access controls, audits and incident response systems. SatDSiG-licensed operators must also use BSI-approved encryption for satellite data transmissions.
For space segments (satellites), no binding law currently mandates cybersecurity, but many missions follow best practices like encrypting telecommands and securing onboard systems. The Federal Office for Information Security (BSI) has created a dedicated unit for “information security in space”, currently developing baseline standards that will likely be formalised in future regulations or space law. Military satellites fall under Bundeswehr’s oversight, and SatDSiG already mandates secure transmission of sensitive remote sensing data, protecting against interception or spoofing.
The whole question of resilience, as described below, notably cybersecurity, will be adjusted and governed to a very large degree if not completely by the EUSA once it is final and has come into effect.
General Versus Space-Specific Cyber Rules
While general cybersecurity frameworks (BSIG, IT-Grundschutz, ISO 27001) apply across sectors, dedicated space guidelines are now taking shape. BSI has issued Technical Guidelines TR-03184-1 (space segment) and TR-03184-2 (ground segment). These guidelines translate ISO 27001 and IT-Grundschutz controls into a space-system “security-by-design” framework and are already treated as the de-facto minimum baseline for licence approvals and KRITIS (critical-infrastructure) audits. Industry practice is also shaped by the BDLI white paper “Security for Space Systems” and by recognised EU/international standards, most notably the ECSS security series and the ESA and NATO cyber-security norms applied to civil and defence missions. Although space was not originally a defined “critical sector”, this is changing with the EU NIS2 Directive.
NIS2 Directive and German Implementation
The EU’s NIS2 Directive now explicitly lists “space” as a high-criticality sector, requiring operators of ground-based infrastructure to meet strict cybersecurity obligations. This includes risk management, supply chain security, incident reporting and supervision by national authorities. Germany is transposing NIS2 into national law (NIS2-Umsetzungsgesetz and KRITIS-Dachgesetz). Once enacted, space companies meeting certain size thresholds will be classified as “essential” or “important” entities, facing mandatory cybersecurity rules and oversight by BSI.
German stakeholders are preparing by adopting measures like network monitoring, secure authentication and supply chain audits. SatDSiG-licensed entities may benefit from streamlined compliance paths. Germany also plans to integrate NIS2 with the EU CER Directive to enhance both cyber and physical resilience.
Germany has currently no space-specific framework for sustainability. The German Space Strategy, however, outlines commitments to responsible exploration and adherence to international guidelines, ensuring spacecraft design and operations consider environmental impacts.
Germany has not defined any protected zones in outer space, although it follows the international treaties and is a party to the Artemis Accords.
There are no government or legislative initiatives regarding critical space minerals. In recent years, however, the EU and Germany have shown interest in critical space minerals. In particular, the EU Space Strategy highlights the importance of securing access to critical raw materials.
At the national level, Germany has been actively involved in discussions regarding space mineral exploitation and has conducted research on potential lunar resource utilisation.
The draft EUSA imposes certain obligations on space stakeholders, once the EUSA is final and comes into effect.
Climate Change and Space
The main current national initiative addressing climate change in relation to space activities is the German Space Strategy (2023), which highlights the importance of space activities for the monitoring of the effects of climate change and the implementation of suitable counter measures.
Germany aims to be a leading location for the development and execution of innovative earth monitoring. In particular, the German Space Strategy describes the importance of space activities for questions of climate change as one of the main fields of action for Germany, describing the monitoring and emission measurement in co-operation with the UN Environmental Program (UNEP) and the on-going support of the Copernicus programme as key projects.
Sustainable Development Initiatives and Space
The German Space Strategy of 2023 emphasised sustainable space exploration and the responsible use of space resources. Initiatives focus on reducing the environmental impact of space activities, promoting co-operation and supporting research into related space technologies, in particular through Earth monitoring.
Moreover, both the EU and Germany are actively involved in international collaborations addressing sustainability in space. Efforts include participation in UNEP and adherence to international guidelines for space debris mitigation and environmental protection.
While there is currently no national German space law, the 2024 cornerstone addressed the issue of space debris in the context of the licensing requirements for space activities. It was described a condition for licensing that state-of-the-art technology would be applied to mitigate space debris in line with international laws. Please see the Germany Trends & Developments chapter in this guide for more detail, in particular regarding the effects of the draft EUSA.
There are no specific tax regulations for space activities. Therefore, the general rules apply.
The jurisdiction of German law does not extend to outer space. It remains unclear at the margins, however, where outer space begins. In this respect, both the so-called “Kármán line” at a height of approximately 100–110 km, as well as the flight altitude achievable with conventional aircraft, could be used as a basis. However, there are no international agreements or conventions in place which would bind Germany on this point.
Therefore, deliveries (for example of a satellite) or other services in space are generally not subject to German VAT, while sales in German airspace may be.
For income tax purposes, according to general rules, all income earned is subject to German (corporate) income taxation. For an individual, this is the case if they have their place of residence or habitual residence in Germany. For a company, this is the case if it has its management or its registered office in Germany. Income that was not earned in Germany is also considered and includes income earned in outer space (for details see 6.3 Taxation on Sale or Transfer of Space Assets).
Provided that a Double Taxation Agreement (DTA) modelled on the OECD Model Tax Convention applies, companies that have their management in a foreign treaty state are generally exempt from German (corporate) income taxation. This should also not be different to the extent any flight vehicles transit German airspace. The LuftVG qualifies spacecraft, rockets and similar missiles as aircraft as long as they are in airspace. This also includes unmanned aerial vehicles, including their control stations, which are not operated for the purposes of sport or leisure activities. Therefore, all of these vehicles should also qualify as aircraft for the purpose of an applicable DTA.
There are no space-specific tax incentives for investors in Germany. However, taxpayers are entitled to claim the research allowance (Forschungszulage) pursuant to the Research Allowance Act (FZulG), to the extent that they are not exempt from taxation.
Eligibility requires the realisation of a favoured research and development project. R&D projects are eligible if they fall into one or more of the categories of basic research, industrial research or experimental development.
The amount of the research allowance is based on the eligible expenditure and equals (currently) 25–35% of the eligible expense. The eligible expenses for R&D projects carried out in-house include the gross wages for employees, insofar as they are employed in a subsidised R&D project, as well as eligible own expenses.
The research allowance applies to an assessment basis of up to EUR15 million. If an R&D project is carried out as contract research by a third party, up to 70% of the agreed remuneration may qualify as eligible expenditure.
The sale or transfer of space assets is generally subject to VAT at a rate of 19%. In principle, a company can deduct the VAT charged on inputs from the VAT payable on outputs. However, as mentioned in 6.1 Tax System for Space Activities, the sale and transfer of assets may be outside the scope of German VAT if carried out in outer space.
All profits realised by a German company are also subject to German corporate income tax at the rate of 15.83% (corporate income tax of 15% plus 5.5% solidarity surcharge thereon). Additionally, trade tax may apply at a rate of approximately 9% to 20%, depending on which municipality levies the tax. Again, this is dependent on the sale and transfer being deemed to have been carried out outside of German airspace, a clear definition of which does not exist yet.
NewSpace
In the past few years, the German NewSpace sector has developed a diverse landscape that extends beyond the production of launchers and satellites.
According to a study conducted in 2020, the 92 dedicated NewSpace companies then in existence had more than 2,900 employees between them and, as early as 2018, estimated aggregate revenue of EUR873 million. The number of start-ups in the space sector (or adjacent deep-tech sectors with ties to space) has significantly risen since then and is currently estimated to be above 1,000. Most of them are clustered around the renowned German technical universities.
There are several initiatives underway in Germany aiming to connect the activities of established companies, medium-sized providers, start-ups and state institutions. Start-up hubs set up at universities and the various existing programmes and activities of the DLR, ESA and other agencies support the rapid growth of the German start-up scene.
Established German space economy players continue to have their internationally recognised technological focus primarily on the development and manufacture of systems and components as well as the provision of satellite services. However, companies that develop new technologies and offer logistics services, including micro-launchers for small satellites, an entirely new generation of satellites and related components, as well as a variety of new solutions for collecting and transmitting data in and from space and analysing such data, are increasingly coming to the fore.
VC and Fundraising
Since 2018, German space tech business start-ups have witnessed a notable spike in equity investments through venture capital, angel and corporate investors. According to the study referenced above, the cumulative VC investment amount for the top deals in 2020 totalled EUR308 million. Financial backers active in the German NewSpace sector include top-tier funds and smaller VCs, corporate venture capitalists and angel investors.
VC and family office backing is the most important third-party liquidity source for German space start-ups. Due to the technological quality of German technical universities and the technological level of start-ups around these universities, there is a steady and – against the overall trend – good level of interest from VC funds in German space start-ups. Financing rounds for German space start-ups made up two of the three highest valuations in EU in 2023.
(Alleged) challenges often criticised by VC investors regarding the German VC landscape and possibly hindering a better “ranking” for VC interest in Europe include the lack of dedicated national space legislation (leading to uncertainties), the relative complexity of general compliance and the lack of clear goals of the German Space Strategy.
A specific and growing trend in Germany’s NewSpace investment landscape is the heightened focus on security and defence-oriented space technologies. Several German dual-use and security start-ups have attracted funding from security-focused venture capital, including NATO’s Innovation Fund, In-Q-Tel, and defence-oriented corporate investors. These investments reflect strategic interest in launch capacity, secure satellite communications, propulsion and space-based surveillance.
Germany’s Armed Forces have also begun contracting with NewSpace companies, supporting dual-use capabilities like hypersonic vehicles and small satellite launchers.
Space activities in Germany are publicly as well as privately funded.
The German state supports the space industry through several initiatives, for instance, the NPWI. Funding through the NPWI is available for companies, universities and non-university research institutions. In addition, the state supports space enterprises via the DLR Project Management Agency. In 2023, the DLR Project Management Agency administrated a funding volume of around EUR2 billion, for more than 14,500 funding projects. There is not currently visible data for 2024.
Space businesses in Germany are also privately funded. The total sum of equity investments in German NewSpace companies from 2019 to 2021 amounted to EUR881 million.
Most of the private investments come from VC funding (including angel investments) and from family offices. Private investors in Germany are mostly overall tech investors or specialised air, space and defence investors, with a rising tendency of sector-agnostic investors participating.
In addition, bonds are seen as a flexible way to invest money alongside typical VC invests. An alternative way of financing, often discussed, could – in the future – be the use of crypto-assets.
Technological quality, industry experience, a strong and well-educated workforce as well as political stability and a perceived attractive German and EU market are assets that attract investment in space activities in Germany.
The investment in space activities is seen as part of the deep tech investment landscape, with a view to being part of advanced technological enterprises with potentially multiple profit effects. Macro effects such as the current discussion around security autonomy, the obvious importance of space data for climate change, and the apparent race to return to the Moon provide additional confidence that the space sector will develop sustainably and that interest is not just hype.
The most important attractor, however, is the combination of a strong industrial basis as facilitator and customer base, a (now existing) strong commitment of the German government to technology development and the build-up of security-related space capabilities and the huge reservoir of expertise at the research institution and universities.
In Germany, foreign investments in domestic companies are regulated by the state under the Foreign Trade and Payments Act (AWG) and the Foreign Trade and Payments Regulation (AWV). The Federal Ministry for Economic Affairs and Climate Action (BMWK) is empowered to scrutinise acquisitions and investments by foreign entities. There are two primary methods of screening: cross-sectoral and sector-specific.
Cross-sectoral screening applies to acquisitions and investments in German companies by non-EU investors, regardless of the industry sectors involved. This screening has thresholds set at 10% and 20% for particularly security-sensitive areas and 25% for other areas in terms of controlled voting rights. Although not all foreign investments undergo automatic scrutiny, there is a mandatory reporting requirement for areas such as satellite operations and companies engaged in aerospace goods or technologies. A specific approval by the BMWK is required in these cases.
Sector-specific screening targets companies involved in military technology manufacturing, sales or usage. It also includes investments from EU member states exceeding a 10% voting rights threshold. Transactions may be restricted or prohibited if they threaten Germany’s essential security interests. For instance, in December 2020, the BMWK blocked the acquisition of German firm IMST GmbH by the China Aerospace Science and Industry Corporation. The BMWK cited concerns about losing technological sovereignty, noting IMST’s 25-year involvement in commercial radio technology as a factor in its decision.
Fundraising in the space sector is often more capital intense, however, generally follows the same documentation processes as other deeptech/tech-driven industries. It may be said that the technical complexity, specific market uncertainty and the regulatory environment are generally, but mostly similar to other high innovation deeptech investments.
The documentation work streams can be systematically divided as follows.
Key Economic Fundraising Documents
Key economic fundraising documents include the :
General Due Diligence Documents and Information in a Data Room
General due diligence documents and information in a data room include:
Transaction Documentation
Transaction documentation includes the:
Fundraising in Space
Fundraising in space:
The due diligence for Space fundraising has – inter alia – the following specific areas of focus:
The key considerations for an exit regarding a space investment are similar to other technological Investments, in particular: right time, right situation for the company and the market, and strategic versus financial investors. The actual process is then dependent on the form of the exit as a private sale/secondary, an IPO or a joint venture.
Most of the topics relevant for fundraising will also be relevant, with the same focus in case of an exit. From a high-level perspective, these can be summarised as follows (secondary as example):
Most small and medium-sized companies in the NewSpace sector are not listed on a stock exchange in Germany, and the role of a primary security market is not yet significant or even visible, apart from occasional stakeholder transactions.
The foregoing is also true for debt security market instruments such as bonds. This appears to be an omission since the ability to provide for a listed investment may open the door for investors that are obliged to invest in listed securities.
In addition, further pursuit of, for instance, the Cape Town Protocol on Space Assets or similar initiatives with the aim of allowing a standard of collateral for space assets to establish itself or the development of the tokenisation market for space assets could add a further way of structuring third-party financing.
Germany has no dedicated IP statutes for outer space; instead, general German and EU IP laws apply, but their reach is inherently territorial. Under the Outer Space Treaty (OST), space is res communis – ie, beyond national appropriation, and German IP law ends where outer space begins. While German law covers the ground and airspace (up to 60 km), it does not automatically apply in the vacuum of space, where freedom of exploration is guaranteed to all.
That said, Article VIII OST provides quasi-territorial jurisdiction, which means that Germany retains legal authority over space objects it registers. In practice, this means German-registered spacecraft are treated as extensions of German territory. Accordingly, patented inventions used onboard such spacecraft must comply with German patent law, just as on Earth.
By contrast, if an act occurs on an unregistered station or celestial body and has no effect on Earth, German IP law cannot be enforced. In such extraterritorial cases, third parties could use German-patented technology in space without consequence under German law. This highlights the unresolved tension between exclusive IP rights and the principle of unrestricted space access.
Nevertheless, Germany’s IP regime remains effective wherever jurisdiction is established. If the results of a space-based invention reach Earth for example, via data transmission or product re-entry, infringement can be pursued. While Germany encourages open access to scientific results in line with international principles, it also protects commercial innovation through IP enforcement where possible.
In short, German IP rights are enforceable within national borders and aboard registered spacecraft but lack global reach in space absent terrestrial impact or registry linkage. No space-specific IP rules exist in German law, and the geographical scope remains Earth-bound, extended only through internationally recognised quasi-territorial principles.
German NewSpace companies typically adopt a multi-layered approach to protecting innovation, combining patent filings with trade secret protection and contractual safeguards. Patents are commonly pursued in key jurisdictions such as Germany, the EU and the United States, where the companies are active or where enforcement of rights is most relevant.
Rather than filing in every potential launching state, protection strategies tend to align with where technologies are developed, deployed or commercialised. Intellectual property concerns are also addressed through detailed agreements with suppliers, collaborators and partners, particularly in the context of joint development projects.
Germany’s space sector features a high degree of collaboration among start-ups, research institutions, established aerospace firms and public entities. These partnerships frequently result in co-developed technologies, and intellectual property arising from such collaborations is often subject to co-ownership or cross-licensing arrangements. Contractual clarity is key, and parties typically agree in advance on ownership, usage rights and licensing structures.
As stated in 8.1 Territorial Patent Law v International Space Law, German patent law is territorial but may apply extraterritorially through quasi-territorial jurisdiction over registered space objects (Article VIII of the Outer Space Treaty). Accordingly, German patents can be enforced when infringing acts occur on German-registered spacecraft or where infringing products or data later enter German jurisdiction. Outside these scenarios, enforcement becomes uncertain.
Germany has no dedicated tribunal or special IP enforcement regime for space-related infringements; such cases fall under the ordinary German civil and patent litigation system. If a patented invention is used without authorisation aboard a German-registered satellite or module, the patentee may bring a claim in German courts. A relevant example is the International Space Station (ISS), where Germany, as a party to the Intergovernmental Agreement (IGA), applies its national patent law to the European (Columbus) module. In this context, Germany modified its patent law to ensure that inventions made within its ISS module are treated as if made on German territory, thereby enabling the enforcement of German patent rights in space.
Beyond such registered platforms, however, infringement that occurs entirely in space with no terrestrial link remains a legal grey area. German courts lack jurisdiction over foreign or privately owned space objects unless there is a downstream effect within Germany (eg, sale or transmission of a product or result).
Looking ahead, space-based manufacturing and AI-generated inventions raise novel enforcement challenges. Under current law, if a product is manufactured entirely in orbit and not commercialised on Earth, it may fall outside German legal reach. This “space loophole” has prompted discussion at international forums, but Germany has not extended its patent law unilaterally and instead supports a multilateral approach.
As for AI, German law currently requires a human inventor for patent filings. AI-generated inventions, even if created autonomously in space, must be attributed to a natural person. Germany continues to monitor these developments, both domestically and through the European Patent Organisation.
Organiaations active in Germany’s space sector commonly include arbitration clauses in their commercial contracts, reflecting broader international practice in the space industry. Arbitration is widely preferred for resolving disputes due to its confidentiality, enforceability across jurisdictions, and suitability for technical subject matters.
The International Chamber of Commerce (ICC) is the most frequently selected institution for space-related contracts, including those involving satellite manufacturing, launch services or in-orbit operations. It is followed by the International Centre for Dispute Resolution (ICDR) and the London Court of International Arbitration (LCIA). Arbitration seats are typically located in neutral and well-established venues such as Paris or London.
German contracts tend to follow these international norms. While purely domestic contracts may designate the German Institution of Arbitration (Deutsche Institution für Schiedsgerichtsbarkeit, DIS) and a seat in Germany, international contracts involving German parties often favour ICC arbitration with a foreign seat to enhance enforceability. Notably, the European Space Agency (ESA) includes arbitration clauses in its General Conditions (Clause 35(2)), and German entities regularly participate in ESA projects subject to these terms.
Germany’s participation in space-related investor-state arbitration has thus far been in the capacity of home state to claimants, rather than as a respondent. A prominent case is Deutsche Telekom v India, an UNCITRAL arbitration under the Germany-India bilateral investment treaty, where Deutsche Telekom challenged India’s cancellation of a satellite spectrum lease involving Devas Multimedia. The tribunal found that India had breached the treaty, including by engaging in unlawful expropriation and denying fair and equitable treatment.
To date, Germany has not been the respondent in any publicly known investment treaty arbitration concerning the space sector.
To date, Germany has seen little to no domestic litigation directly arising from space activities. Historically, the absence of a national space law meant that disputes were governed by international treaties and general German law. Most space-related conflicts have been resolved through arbitration, diplomatic channels, or international mechanisms rather than domestic litigation.
When space-related issues have reached German courts, they typically involve contractual or employment disputes. A leading case was Waite and Kennedy v Germany, where the European Space Agency’s immunity from German jurisdiction was upheld, a decision later confirmed by the European Court of Human Rights.
German stakeholders have also engaged in space-related litigation at the EU level. For instance, OHB AG challenged an EU procurement decision for Galileo satellites before the General Court, though the claim was dismissed in 2023.
As Germany’s commercial space sector grows, more litigation may emerge. Germany’s planned Space Act and its 2023 accession to the Artemis Accords suggest an evolving legal framework. This may eventually lead to increased judicial review and more domestic litigation. For now, Germany follows a dual-track approach: arbitration for private disputes, diplomacy or EU processes for public matters, and minimal court involvement to date.
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a.lenz@heuking.de www.heuking.deSpace Trends from a German Perspective – a Flurry of Developments and New Ambitions
The number and significance of space-related developments in the last 12 months have been extraordinary, generally positive for the economic prospects of the German space industry and overall, largely driven by political developments in Germany and the EU.
We may summarise our view on the past 12 months’ developments and the key future trends as follows.
In giving detail to the background and the particulars of some of the foregoing, the following is of relevance.
Defence and security autonomy
Autonomy in defence and security is increasingly perceived as a topic closely connected to independent space capabilities, both in Europe and on a national level in Germany. The 2025 coalition agreement of the parties of the new German government makes this connection explicit, citing the Ukraine war and the perceived ambiguity of the new US government regarding certain fields of partnership with Europe.
The explicit emphasis on the correlation of space and security/defence at the highest political level in Germany is a major development in the perception of space in Germany. This is echoed by major German defence and industry stakeholders, announcing and facilitating investments into space capabilities or even starting activities in the space sector for the first time (for instance: satellite production for defence purposes, converting an automotive production site), which, in turn, also garners increased interest of private investors. As a result, both private and public investments are significantly focusing on dual-use and security-related space technologies.
We expect these security-related developments in the space sector to be a sustainable trend both in Europe and in Germany, and the acceptance of the role of space capabilities for security to be a paradigm change for Germany’s space activities.
The main legal considerations that arise from the evolving landscape of dual-use and defence space tech can be summarised as follows:
Technology and capability autonomy
Closely related to the foregoing, autonomy regarding general technology and space capabilities is increasingly seen as a necessity in Europe and on a national level in Germany.
Germany, therefore, while acting within the framework of the ESA and EU, already pays special attention to facilitate the further development of its own launcher capabilities by fostering the three German launcher start-ups – ie, Isar Aerospace, RFA-Rocket Factory Augsburg and HyImpulse. Although all three companies are ahead of many other European mini-launcher initiatives, there are still some steps which need to be taken.
All three companies aim for further launches in 2025. Both RFA and Isar Aerospace have secured space port access to private European Space Ports and to the European Korou facilities.
Ambitions for far-reaching autonomy are inter alia driven by a high degree of uncertainty regarding joint plans of the US and Europe for space missions (Artemis/Moon/EMS Module/New Space Station). It must be said that the new US administration garnered a lot of uncertainty regarding planned co-operation projects with possible negative impact for the European and the German Space Industry. Proposed NASA budget cuts threaten, in particular, parts of the international ARTEMIS Program, in which Europe/ESA and NASA and others co-operate.
Another example of the autonomy ambitions is the EU IRIS2 Project. With a ten-figure budget, IRIS2 seeks European security autonomy regarding public and security communication. IRIS2 will include a planned satellite constellation of more than 240 satellites to ensure secure institutional communication autonomy. The main hub for the IRIS2 secure satellite communication system will be located in Cologne, Germany. This hub will be used to provide and control satellite-based communication services for safety-critical applications in the EU.
Draft EU Space Act and Vision for the European Space Economy
The draft EUSA was published on 25 June 2025. The EUSA includes further specific transition periods for certain obligations and/or stakeholders.
On the same date, the Commission also published the Vision for the European Space Economy (the “ESE Vision”), which is set to be implemented as an Initiative with immediate effect.
The EUSA identifies three core pillars applicable to authorisation processes by member states or the European Union Agency for the Space Programme (EUSPA).
Key Features EUSA
Addressees of EUSA
Relevance
Vision for European Space Economy
Remaining competences on national level – no full harmonisation
The EU Space Act, once becoming effective, will be directly applicable in all member states. The EUSA introduces uniformity, however, does not provide for full harmonisation. In particular, member states:
The EUSA does not impose restrictions in areas it leaves unregulated. Particularly relevant in this respect are requirements relating to liability coverage for potential damage caused by space objects.
Member states will also retain the right to impose stricter requirements where objectively necessary.
Further information on the latest developments regarding the EU Space Act can be found on the Heuking website.
Cornerstones of the 2024 draft of a German Space Law
The previous German government allowed for a first glimpse into the 2024 draft by publishing a Key-Issue Paper (cornerstones) of the first-ever German Space Law in September 2024. The introduction linked the law to international regulatory obligations, the defence against threats to public safety and the strengthening of security autonomy. This was supplemented by an affirmation of the intention to “strengthen the space industry and make it more competitive”.
It is still unclear at the time of writing whether the new German government will simply finalise the law based on the cornerstones described in the Key-Issue Paper or will start anew. The critical perception the cornerstones received from representatives of parts of the new German government and the public hints to significant changes, at least, to certain procedural aspects and licensing conditions, it being understood that the EUSA must be reflected and will be applicable in any case for the licensing process.
Licensing requirements
The licensing requirements will follow the EUSA in its finalised form. As outlined before, stronger requirements are possible and nothings hinders Germany to regulate areas which do not fall under the scope of the EUSA.
Liability recourse and coverage provision
As part of the authorisation requirements, a space operator must prove its financial capacity for a recourse in case of damages. The space operator is expected to provide security in the form of insurance or a bank guarantee. Other forms of cover, deviating from other national space laws, that could be cheaper or more liquidity-friendly for the space operator – eg, in comparison to a bank guarantee or insurance – are not considered in the brevity of the Key-Issue Paper. There is practical experience and discussion on this in other countries, for example in the USA and – according to recent consultations – the UK, which should be included.
The possible recourse in cases of slight and medium negligence is foreseen to correspond to a maximum amount equivalent to 10% of the space operator’s three-year average annual turnover, but not to exceed EUR50 million. The standard recourse may therefore be lower than the maximum limit of EUR60 million in other European space laws, particularly for SMEs and start-ups with low turnover. As turnover has nothing to do with risk potential, this can be clearly seen as supporting SMEs and start-ups.
Authorising authority
The German Space Law is expected to accommodate a single authority and a fixed maximum timeline. This would be in line also with the EUSA, and even required under the EUSA.
In competition with other countries, the duration, complexity and clarity of the authorisation procedure are critically important. Predicting the duration, outcome and indirect costs of an authorisation process will be decisive for German space companies when implementing space activities. Predictable, streamlined procedures are vital for competitiveness; industry therefore advocates maximum clarity on responsibilities and deadlines. The cornerstones attempt to reach this; the details, however, cannot be extracted from mere cornerstones.
German space strategy under new German government
The new German government, elected in February 2025, has re-organised the Ministry for Education and Research into a new Ministry for Technology, Research and Space, and also started to transfer economic-promotion expertise from the Ministry of Economics to it. According to the coalition agreement, Germany will increase support for space at both EU and national levels.
The 2025 coalition agreement of the new German government outlines a comprehensive approach to fostering the growth and competitiveness of start-ups and small and medium-sized enterprises in the German space sector. Recognising the vital role these companies play in driving innovation, economic growth and technological advancement, the agreement details several targeted measures, inter alia:
Further developments
Industry developments
The current development towards a security-related use of space technologies has attracted additional attention to space technology. This, in turn, has attracted the attention of major industry stakeholders who have so far not viewed themselves as space stakeholders.
Notably, the German defence industry giant Rheinmetall has taken significant steps to involve itself in certain areas of satellite technology and in April 2025 announced its intentions to build satellites for monitoring and communication purposes. Other established non-space industrial players are expected to follow suit. A similar trend can be noted in the start-up and investment environment.
VC interest in Germany is now clearly focussed on start-ups with dual use potential.
Developing initiatives in German regions
The current centres of German space technology are situated around the big technical universities and the big industries. Notably, in the north, around Bremen (OHB, Airbus Space and Defence) and the south around Munich, where the Technical University Munich and University of the German Armed Forces have been successfully spinning out space start-ups for years.
However, this is by far not all. The regions of/around Berlin, Dresden/Leipzig, Stuttgart, Braunschweig, Darmstadt and in particular Aachen, just to name a few, are each home to internationally recognised technical universities and in certain cases also to ESA or EU space activities and increasingly home to young space start-ups. It can be expected that these regions will further grow in significance and will be increasingly perceived as viable areas for space technology in Germany.
It is the ambition of the new German government, and increasingly of individual federal states, to promote their regional expertise and to build supportive ecosystems for space technology. The most recent example is the state of North-Rhine Westfalia, the largest of the German states, which has just kicked off its space initiative, which will draw upon the expertise of the nearby technical universities in Aachen, the GovSatCom Hub of IRIS2 and a dedicated Space Campus in Cologne, all at the premises of the already-existing important location of the German Space Agency and ESA near the Cologne Airport. Various other examples at different places are in the making.
Overall, Germany boasts rich research and industrial capabilities, expertise in technology and technology education. It can be expected that a stronger focus on the advantages of space technology, combined with the expected/hoped-for record-level federal investment, rising industry interest and upcoming legislation providing legal security and a level playing field, will give Germany’s space ecosystem a significant boost.
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a.lenz@heuking.de www.heuking.de