Since 18 September 2018, families and single parents with a taxable household income of up to EUR 75,000 per year, plus an allowance of EUR 15,000 per child, can apply online to the Kreditanstalt für Wiederaufbau for what is known as "Baukindergeld" (child construction allowance) when first acquiring an owner-occupied residential property.
It is irrelevant whether the property was purchased or self-built, and likewise whether it is a house or a freehold apartment.
For each child who qualifies for Kindergeld (child benefit), EUR 1,200 is paid for a maximum of ten years, and only for as long as the child has not yet reached the age of 18. A family with three children therefore receives funding of EUR 36,000, provided that none of the three children has reached the age of 18 within the ten-year period following the application.
Baukindergeld is not paid for children born after the application is submitted. Applicants can still receive Baukindergeld retroactively as of 1 January 2018 if the date of the notarised purchase agreement or the building permit falls within 2018. Important — do not miss this deadline: the application for Baukindergeld must be filed no later than three months after moving into the home.
Frequently asked questions
Frequently asked questions
Who is eligible to apply for the Baukindergeld (German child building allowance)?
Eligible applicants are families or single parents with children for whom child benefit (Kindergeld) is received, when acquiring an owner-occupied residential property for the first time. The taxable household income must not exceed EUR 75,000 per year, plus an allowance of EUR 15,000 per child. It is irrelevant whether the property was purchased or self-built, or whether it is a house or a condominium.
How much is the Baukindergeld (German subsidy for families building or buying a home) and over what period is it paid?
EUR 1,200 per child is paid annually for a maximum of ten years, but no longer than until the child reaches the age of 18. A family with three children can therefore receive a maximum subsidy of EUR 36,000, provided that none of the children come of age within the ten-year period.
Are children born after the application considered for the Baukindergeld (German child construction subsidy)?
No, the Baukindergeld is not paid for children born after the application has been submitted. The decisive factor is the eligibility for Kindergeld (German child benefit) at the time the application is filed.
What application deadline applies to the Baukindergeld (German child building allowance)?
The application must be submitted online to the Kreditanstalt für Wiederaufbau (KfW) no later than three months after moving into the home. If this deadline is missed, the entitlement to the subsidy lapses.
Is retroactive funding under the Baukindergeld (Germany's child-related home ownership subsidy) possible?
Yes, retroactive funding back to 1 January 2018 is possible if the date of the notarised purchase agreement or the building permit falls within 2018. The application must still be submitted within three months after moving in.