Regardless of whether you buy or build a new house or condominium, the German government’s "Baukindergeld" subsidy provides families with children with up to 12.000 Euro per child. This applies to properties that have been built since 1. January 2018 have been purchased. For new buildings, the date of the building permit applies instead.
If your family falls under the scheme, you can apply to the Kreditanstalt fur Wiederaufbau (K) for child construction subsidies and see to it that your real estate purchase is recognized and subsidized. If you are still planning a real estate purchase, pay attention to the deadlines and consider the subsidies when financing!
There are various deadlines for the Baukindergeld, all of which you must meet:
- By the end of March 2021 at the latest, you had to signed the purchase contract or obtained the building permit have (the deadline was supposed to end in 2020, but had been extended due to the Corona pandemic).
- At the latest six months after moving in (official registration confirmation) you must have submitted the application for the building child allowance.
- You can submit the application At the latest on 31. December 2023 after which it is no longer possible.
We show who gets when Baukindergeld and which special cases apply:
Who is eligible for child allowance??
- Families with at least one child are eligible.
- When you apply, children under the age of 18 are taken into account.
- The children must move into the property with you.
- Your annual taxable household income may also not exceed 75.000 euros and an additional 15.000 euros per child.
- You get Baukindergeld only for the first property. If you already own one, you cannot apply for it. This applies z.B. even if you have inherited or received a property as a gift and, together with others, only have a share in it in the land register.
For a sample family with two children, this results in a maximum annual taxable household income of 105.000 euros (75.000 Euro + 2 x 15.000 Euro). Who is under it, gets 24.000 euros from the state (12.000 Euro per child), whoever is above this amount will not be subsidized.
|1||90.000 euros||12.000 Euro|
|2||105.000 euros||24.000 euros|
|3||120.000 euros||36.000 euros|
|4||135.000 Euro||48.000 euros|
|.||+ 15.000 euros per additional child||+ 12.000 Euro per additional child|
How is Baukindergeld paid out?
Families who successfully apply for a grant receive 1,200 euros per child each year for a total of ten years. So you get a total of 12.000 Euro per child. In the case of the example family with two children, this would be a total of 24.000 euros.
When financing, you should therefore bear in mind that you will not have the money available immediately. Instead, it can be used, for example, to pay off a loan (if this is possible with your loan).
When planning construction financing, you should generally seek independent advice – for example, from a consumer advice center.
How to apply?
Keeping an eye on costs when buying real estate
In Germany, real estate buyers have to pay very high construction/ancillary costs. Currently, the ancillary costs for purchasing a house are up to 15 percent, and are usually not covered by the construction loan. So check the financing carefully, even with the building allowance!
By the way, you can combine Baukindergeld with other public subsidies in principle. Pay attention therefore z.B. on whether there are suitable K programs for you.
How exactly is the calculation of the income?
Whether your annual household income is too high is calculated on the basis of the average income in the second and third year before the application is received. So make the application z.B. in 2021, then add up the income of both parents from 2019 and 2018 and divide this sum by two. You must take into account, in addition to normal salaries, z. B. also income as a self-employed person.
How is that exactly with the deadlines for the children?
A child is counted if he or she is still under 18 and moves into the new property with you. If the children become older than 18 in the coming years and/or they move out of home again, this does not affect the subsidy and the Baukindergeld continues to be paid out. However, the subsidy should probably only be paid as long as you receive child benefit.
If another child is born after your application, this will probably not affect the subsidy either. You will then not receive any additional money.
And if my life situation changes?
Building child benefit is only paid out as long as you actually live in the property. Move out and rent the house or apartment to someone else or even sell it, then the payment will stop and will not run through the entire ten years.
In the case of divorce/separation, it could also be difficult.
Special solution in Bavaria
You can get the Baukindergeld per se in every federal state. Bavaria, however, pays even more: If you live there, you get an additional 300 euros per child over ten years and a one-time 10 euros per child.000 Euro home owner allowance.
So there, an example family gets in addition to the 24.000 federal subsidy another € 16.000 euros from the Free State (10.000 euros one-time payment + 2 x 3000 euros Bavarian building allowance).
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