A German shopkeeper has been convicted of inciting hatred after posting a sign in his window banning refugees and comparing them to dogs.

“Asylum seekers must stay outside”, read the black and white placard, with a picture of a panting dog.

A court in Wunsiedel, Bavaria, fined the 54-year-old shop owner €1,800 (£1,500) for incitement on Thursday.

Judge Roland Kastner told the district court the use of a dog’s image was key to the conviction, the Nordbayerischer Kurier reported, and without it he could have argued freedom of speech.

“You certainly did not expect the sign to have such a huge impact,” he told the defendant.

“In my view, that is due to your stupidity.”

The prosecution called for a higher fine for the shopkeeper, from the Franconian town of Selb, arguing the term used to describe refugees – “Asylanten” – was in itself derogatory.

A lawyer for the defence claimed the sign was not malicious and said his client could not be considered racist because he had been in a relationship with a Russian woman for ten years and had friends who were foreigners.

Refugees settle in Germany Show all 12 1 /12 Refugees settle in Germany Refugees settle in Germany Germany Mohamed Zayat, a refugee from Syria, plays with his daughter Ranim, who is nearly 3, in the one room they and Mohamed's wife Laloosh call home at an asylum-seekers' shelter in Vossberg village on October 9, 2015 in Letschin, Germany. The Zayats arrived approximately two months ago after trekking through Turkey, Greece and the Balkans and are now waiting for local authorities to process their asylum application, after which they will be allowed to live independently and settle elsewhere in Germany. Approximately 60 asylum-seekers, mostly from Syria, Chechnya and Somalia, live at the Vossberg shelter, which is run by the Arbeiter-Samariter Bund (ASB) charity 2015 Getty Images Refugees settle in Germany Germany A refugee child Amnat Musayeva points to a star with her photo and name that decorates the door to her classroom as teacher Martina Fischer looks on at the local kindergarten Amnat and her siblings attend on October 9, 2015 in Letschin, Germany. The children live with their family at an asylum-seekers' shelter in nearby Vossberg village and are waiting for local authorities to process their asylum applications. Approximately 60 asylum-seekers, mostly from Syria, Chechnya and Somalia, live at the Vossberg shelter, which is run by the Arbeiter-Samariter Bund (ASB) charity Getty Images Refugees settle in Germany Germany Kurdish Syrian asylum-applicant Mohamed Ali Hussein (R), 19, and fellow applicant Autur, from Latvia, load benches onto a truckbed while performing community service, for which they receive a small allowance, in Wilhelmsaue village on October 9, 2015 near Letschin, Germany. Mohamed and Autur live at an asylum-applicants' shelter in nearby Vossberg village. Approximately 60 asylum-seekers, mostly from Syria, Chechnya and Somalia, live at the Vossberg shelter, which is run by the Arbeiter-Samariter Bund (ASB) charity Getty Images Refugees settle in Germany Germany Mohamed Ali Hussein ((L), 19, and his cousin Sinjar Hussein, 34, sweep leaves at a cemetery in Gieshof village, for which they receive a small allowance, near Letschin Getty Images Refugees settle in Germany Germany Mohamed Zayat, a refugee from Syria, looks among donated clothing in the basement of the asylum-seekers' shelter that is home to Mohamed, his wife Laloosh and their daughter Ranim as residents' laundry dries behind in Vossberg village on October 9, 2015 in Letschin, Germany. The Zayats arrived approximately two months ago after trekking through Turkey, Greece and the Balkans and are now waiting for local authorities to process their asylum application, after which they will be allowed to live independently and settle elsewhere in Germany Getty Images Refugees settle in Germany Germany Asya Sugaipova (L), Mohza Mukayeva and Khadra Zhukova prepare food in the communal kitchen at the asylum-seekers' shelter that is their home in Vossberg village in Letschin Getty Images Refugees settle in Germany Germany Efrah Abdullahi Ahmed looks down from the communal kitchen window at her daughter Sumaya, 10, who had just returned from school, at the asylum-seekers' shelter that is their home in Vossberg Getty Images Refugees settle in Germany Germany Asylum-applicants, including Syrians Mohamed Ali Hussein (C-R, in black jacket) and Fadi Almasalmeh (C), return from grocery shopping with other refugees to the asylum-applicants' shelter that is their home in Vossberg village in Letschin Getty Images Refugees settle in Germany Germany Mohamed Zayat (2nd from L), a refugee from Syria, smokes a cigarette after shopping for groceries with his daughter Ranim, who is nearly 3, and fellow-Syrian refugees Mohamed Ali Hussein (C) and Fadi Almasalmeh (L) at a local supermarket on October 9, 2015 in Letschin, Germany. All of them live at an asylum-seekers' shelter in nearby Vossberg village and are waiting for local authorities to process their asylum applications, after which they will be allowed to live independently and settle elsewhere in Germany 2015 Getty Images Refugees settle in Germany Germany Kurdish Syrian refugees Leila, 9, carries her sister Avin, 1, in the backyard at the asylum-seekers' shelter that is home to them and their family in Vossberg village in Letschin Getty Images Refugees settle in Germany Germany Somali refugees and husband and wife Said Ahmed Gure (R) and Ayaan Gure pose with their infant son Muzammili, who was born in Germany, in the room they share at an asylum-seekers' shelter in Vossberg village on October 9, 2015 in Letschin, Germany. Approximately 60 asylum-seekers, mostly from Syria, Chechnya and Somalia, live at the Vossberg shelter, which is run by the Arbeiter-Samariter Bund (ASB) charity, and are waiting for authorities to process their application for asylum 2015 Getty Images Refugees settle in Germany Germany German Chancellor Angela Merkel pauses for a selfie with a refugee after she visited the AWO Refugium Askanierring shelter for refugees in Berlin Getty Images

The man also told police that he had had negative experiences with people he identified as refugees, The Local reported, including two men who once smoked cannabis inside his shop near flammable material.

He removed the sign as news reports started to spread in August, sparking an angry reaction and abuse, including excrement being smeared on his shop window and an attempt to tamper with his car.

“The sign I had in my shop had no racist or right-wing background,” he wrote in a letter expressing his regret to Ulrich Pötzsch, the local mayor.

“I did not imagine the negative consequences that it would have for the town of Selb and for the business world.”