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When military law becomes an obstacle to international business matters

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From New York, Rio, Tokyo – how the new military law is becoming an obstacle for founders, entrepreneurs and companies in an international context

International mobility, secondments, business abroad – these are actually self-evident things in a united Europe, in a globalized world.

The current situation should give cause for concern. Anyone wanting to go abroad for more than a temporary posting needs official approval from the state. In this case, the state is the Ministry of Defense, or BMVg for short. This ministry is represented locally by the so-called Career Centers of the Bundeswehr, formerly something like the district military recruitment offices.

From New York, Rio, Tokyo – how the new military law is becoming an obstacle for founders, entrepreneurs and companies in an international context

Legal background

Affected group of people

Economic relevance and practical examples

Conclusion and recommendations

Legal background

The German government has traditionally made it quite difficult for Germans seeking to establish their primary residence outside of Germany. One example is the so-called exit tax, which levies substantial taxes on Germans who relocate their primary residence abroad, including to other EU countries. While these government interventions have thus far appeared to be primarily motivated by fiscal interests, the reactivation of the Compulsory Military Service Act (WPflG) introduces a further obstacle for those wishing to serve abroad. This refers to Section 3, Paragraph 2 of the WPflG. Contrary to some false reports in the press, this paragraph is... not New. It has merely been extended to the normal case through the amendment of Section 2 Paragraph 3 of the Military Service Act (WPflG), after previously it was only intended to apply in the event of a state of tension or defense (i.e., an attack on the Federal Republic of Germany, NATO/EU). Since no such state has ever been declared since World War II, this regulation was never applied in practice. That has now changed. Thus, a military law provision is now, for the first time, impacting everyday life and the economy. Section 3 Paragraph 2 Sentence 1 of the Military Service Act states:

Compulsory Military Service Act (WPflG)

§ 3 Content and duration of military service

(2) Male persons who have reached the age of 17 must obtain permission from the competent career center of the Federal Armed Forces if they wish to leave the Federal Republic of Germany for more than three months without the conditions of Section 1 paragraph 2 already being met.

Affected group of people

According to current legislation, in view of the clear wording and the underlying intention of the legislator, it must be clearly assumed that this reporting and approval obligation applies to all German citizens who have reached the age of 17 and are not yet 45 years old.

This refers primarily to those born between 1994 and 2007, who were never even registered for military service due to the suspension of compulsory conscription. Unlike older individuals, these men did not fulfill their military obligation by performing military or civilian service.

The regulation addresses all Germans, that is, all Germans with a passport – this includes in particular persons with dual nationality or even supposed foreigners who nevertheless now possess a German passport.

Economic relevance and practical examples

This regulation has a major impact on the economy, especially because the legislator has not yet specified exceptions through administrative regulations.

This is particularly explosive for the Business matters with an international dimension. International mobility is no longer an exception, but a lived reality. This is precisely where Section 3 Paragraph 2 of the Compulsory Military Service Act (WPflG) can have practical consequences:

Secondment employee – Employees are seconded to foreign group companies, branches or teams for several months.
Project staff and specialists on international assignment – For example, consultants, engineers, IT specialists, lawyers, compliance officers or interim managers.
Entrepreneurs who typically spend extended periods abroad – For example, due to investors, production sites, supply chains, negotiations, or operational management abroad.
Managing Director and Board Member – Especially in small and medium-sized enterprises, a lot depends on individual key people with an international presence.
Founders, start-up leaders and digital entrepreneurs – Especially when relocating residence or center of life to Dubai, Cyprus or Spain.
Influencers, content creators, and location-independent digital business models Anyone who works, produces, or relocates their operations abroad for an extended period of time should not ignore this issue.
Self-employed individuals and freelancers with an international business model – For example, consultants, agency owners, developers, coaches, e-commerce entrepreneurs or artists.
Students and junior staff – For example, during ERASMUS, semesters abroad, or longer-term training stays.
Remote workers and digital nomads Anyone who works from abroad for months at a time quickly finds themselves in a legal gray area.

The point is simple: Section 3 Paragraph 2 of the Compulsory Military Service Act (WPflG) is no longer an exotic detail of military law. The regulation can become a genuine issue for mobility, planning, and compliance – for employees as well as for companies, founders, and internationally active individuals.

Furthermore, in practice, it rarely stops at the military service law alone. Depending on the circumstances, questions also arise concerning passport law, registration law, professional law, criminal law, and other administrative regulations.

Conclusion and recommendations

The new legal lever lies not only in military service itself, but also in state control of extended stays abroad. For businesses and international mobility, this is an issue that must now be considered.

Anyone who wants to clarify whether they or their company are affected should have the situation legally reviewed as early as possible. That's exactly what I can help with.