Baukindergeld – “first year” – apply by December 31, 2018 at the latest.

For the purchase of a new or used property

(house or condominium) in Germany can claim a subsidy for 10 years from 2018, as long as the property itself is used for residential purposes. The prerequisite is that at least one child entitled to child benefit under the age of 18 is registered in the household of the owner (or 50% co-owner) of the dwelling. Furthermore, the household income may not exceed 90,000 euros annually for one child plus 15,000 euros for each additional beneficiary child.

The average taxable household income of the second and third year before application according to the income tax assessment notice is decisive; the income of the applicant, his/her spouse/life partner or the partner from a marriage-like community is taken into account.

The household community with minor children must exist at the time of application; a subsidy is not possible for children born later. The application must be submitted no later than 3 months after moving into the owner-occupied residential property (the official registration confirmation is decisive).

The building child allowance is excluded if there is already current ownership (also through inheritance or donation) of a residential property in Germany; the property to be subsidized must be the applicant’s only residential property at the time the purchase contract is concluded or the building application is submitted. Vacation homes are not harmful in this regard.

Is the collection in the “first year” 2018

occurs prior to the start of funding on September 18, 2018, will be eligible for funding – regardless of the three-month application deadline – if the application is submitted no later than December 31, 2018. However, children are only considered if they were born within 3 months of moving in at the latest. New or existing buildings are generally only eligible if the building permit is issued in the years 2018 to 2020 or the notarized purchase agreement is or has been signed in this period. If the owner-occupancy takes place later, a subsidy is eligible if a corresponding application is submitted within 3 months after moving in, but no later than December 31, 2023.

A special rule applies if the applicant has been domiciled or habitually resident in Bavaria for at least one year or has been permanently gainfully employed in Bavaria for at least one year. If in this case the described requirements for the nationwide Baukindergeld are met, an additional “BaukindergeldPlus” of 300 euros per child and year can be applied for.

(For further comments, information and additional breakdowns on this, please refer to our Information Letter 11/2018).