Tameside Magistrates heard that Roy West, 44, of Glenmore Grove, Dukinfield is accused of using racially aggravated words against his German neighbour on August 22 this year.
He denies the charges.
Defending, Kevin Nicholas said that West is alleged to have said "Remember Dunkirk" during an argument with his neighbour.
Mr Nicholas, who disputed whether the words were racist, asked for the trial to be heard out of the Tameside area because of West’s connections with the BNP in Tameside.
"I’m not suggesting any integrity issues, but Mr West is a BNP candidate for this region," he said. "He tells me that on the bench in Tameside there are some Labour councillors or candidates. He has had difficulties with one of them in the past. We would ask the court not to hear this at Tameside, but at a different court."
The court took note of West’s concerns and asked for the case to be heard before the Manchester district judge who comes to the court on a weekly basis.
West will remain on police bail, on the condition that he does not contact his neighbour or the neighbour’s partner either directly or indirectly. A hearing on 12 November will set a date for his trial at Tameside Magistrates’ Court.
West stood as the BNP candidate for Dukinfield during May’s local elections.
He came second behind Councillor Brian Wild with 734 votes.