Special child allowance for new home owners (Baukindergeld)

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Stephan Raczak

Oct 12, 2018
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To promote you buying your first German home the government offers a subsidy of €12,000 baukindergeld per child.

The baukindergeld is for:

  1. your first and only home in Germany.

  2. you need to occupy the home (holiday homes are excluded).

  3. you need to have a child under 18 in your household.

  4. your taxable gross income is under €90,000 for one child, €105,000 for two , €120,000 for three, and so on.

  5. it is paid annually for up to 10 years (€1,200 per child per year).

The good news: the payment is tax free and some banks count it towards your income.

If you live in Bayern you can obtain a further subsidy of €300 per child per year.

The key conditions in more official language

Who can apply? The (co-) owner of the property who is:

  • Entitled to a child benefit or who lives in a household with the person entitled to a child benefit, and in whose household at least one child is registered who, at the time of application, has not yet reached the age of 18 and for whom the household is entitled to a family grant

  • Whose taxable annual household income does not exceed €90,000 euros (for families with one child). Each additional child increases the household income limit by €15,000 euros.

What property is eligible?

Your first newly constructed or acquired property in Germany is eligible, provided that you will inhabit it yourself. If you already own a home in Germany (regardless of whether you occupy it yourself, or rent it out), you are excluded from this subsidy. Homes outside Germany do not count.

Important:

Families who have moved in since the grant have three months following the confirmation of their registration by local authorities to apply for the grant.

How large is the subsidy?

You can receive a subsidy of €1,200 annually for each under the age of 18, for a maximum of 10 years. In total, you can receive € 12,000 euros for each child if you live in the home for 10 consecutive years.

When and how should the grant be applied for?

You apply for the subsidy at the “KfW Grant Portal” after you have moved into the property.

What happens after the application has been submitted?

You will receive a confirmation of the application, after which you must prove your identity. In order to prove your eligibility and to receive the grant, upload the required proof in the KfW Grant Portal. KfW will then check your eligibility conditions.

Further details can be found here.

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Stephan Raczak

Stephan is one of Hypofriend’s Mortgage Experts.