Police broke up the gathering of 30 people, including 15 adults, in an apartment in the town of Hamelin, Lower Saxony, on Tuesday after receiving a complaint from the neighbours, they said in a statement.
One woman and five children hid in the bathroom while others tried to conceal themselves in cupboards, German media reported.
“A total of 30 people were found in the apartment. Face coverings were not being worn by anyone and social distancing was not observed,” police said.
The adults in the group have been hit with fines.
Gatherings with more than one other person from a different household are banned under current coronavirus regulations in place in Germany until at least January 31st.
Germany reported 19,600 new cases of Covid-19 in the past 24 hours on Wednesday and 1,060 deaths, according to the Robert Koch Institute (RKI) disease control centre.