Since the age of 18, families have been able to use the building. September 2018 a government repayment subsidy of 12.Secure € 000 per child for construction financing. Everything you need to know about the 2022 building subsidy at a glance, read here.
What is baukindergeld??
Since the 18. September 2018 you can apply for the baukindergeld from the state-sponsored kreditanstalt fur wiederaufbau (kfw). The kfw manages the building subsidy under the program 424. We'll briefly list everything you need to know about the baukindergeld:
- The baukindergeld is a government subsidy for families who want to build or buy their first home.
- The property must be sold between 01.01.2018 and the 31.03.Acquired in 2021 or the building permit must have been issued within this time period.
- The subsidy is intended as a grant for the repayment of the construction financing, which is paid annually after moving into the property.
- You do not have to repay the building loan.
- For each minor child living in the household, you will receive an annual allowance of 1.200 €; and that over 10 years.
- Applications are submitted to the kfw under the 424 subsidy program. You can upload the required documents in the online portal of the kfw.
The prerequisites: who gets building subsidies??
In order to apply for and receive the construction child benefit, families must meet a number of requirements. Whether you also receive the government subsidy depends on whether the following conditions fit you and your family situation. You will receive baukindergeld if:
- You are a family or a single parent with at least one minor child living in the same household,
- Your maximum taxable income exceeds the limit of 75.000 € plus 15.000 per minor child does not exceed (i.E. 90.000 € maximum income with one child),
- The purchase contract or the building permit at the earliest on 01.01.2018 and at the latest on 31.03.2021 has been signed or granted,
- Your property in germany is ready.
- It is the only property at the time of application (effective date: date of purchase contract/building permit) that you and your family are purchasing.
Requirements for income in detail
To get the new baukindergeld, your taxable income must not exceed 75.000 € plus 15.Do not exceed € 000 allowance per child. In addition to your salary, your taxable income also includes all income from rentals or self-employment. If you want to know how much taxable income you have, take a look at your last income tax statement.
For each minor child living in the household, the income limit increases by 15.000 €. If, for example, you have 3 children, the allowance for children increases to 45.000 and your maximum income may then exceed the limit of 120.000 € not to exceed.
This income limit must not have been exceeded the year before last and the year before last when the application for child construction benefit is made. To be more precise, when they apply in 2022, they must not have exceeded this limit in 2019 and 2020. Why 2019 and 2020, you may ask?. This has to do with the fact that you have to submit income tax receipts when applying for building subsidies. You will not receive the 2021 grant until 2022, and you may not have received a decision for 2020 either.
Prerequisites children and baukindergeld in detail
In order to be eligible for a child benefit, the child must be a minor. That is, the child may receive his or her 18. You have not yet celebrated your birthday. If you have 2 children, one of whom is over and the other under 18 years old, you can at least apply for child benefit for the younger child. There is no maximum number of eligible children per family.
As an applicant, you must be entitled to child benefit and receive child benefit for the child or children. In addition, you must all live together in one household – i.E. In a family – on the day of application.
If you are expecting an addition to your family, this child must have been born at the time of application. At the same time, if a 17-year-old child turns 18 even one day after applying for child construction benefits, he or she will still be fully subsidized. The requirements must only be current on the day of the application.
Requirements for the property in detail
In order to be able to apply for the building subsidy, there are a few prerequisites that apply to the property. You will find the necessary details below:
- The property must be financed between 1. January 2018 and the 31. The property must have been purchased by march 2021 or the building permit for the new construction must have been issued.
- Whether you are building a new home or buying an existing property is irrelevant. It can also be an owner-occupied apartment. There are no restrictions as to the size of the living area.
- They can only apply for the building subsidy once they have moved into the property. From this point you have 3 months to apply for the loan.
- If you are building a new home, the latest possible date you can use the building subsidy is the 31st day of construction. December 2023 apply. Provided that the money pot is not yet exhausted. The reason for this is that there may be delays in new construction. Have they for the building of a house thus on 31. If you get the building permit on december 2020, the construction can take a good 3 years and you will not lose the right to building subsidies.
- The property acquired must be the only property owned by you up to the time of application. However, you do not have to be the sole owner.
- If you make the application, you must be at least co-owner:in the property. The household must own the apartment or house at least 50%.
By the way: the property you buy does not have to be the first property you own. It only has to be the only property on the closing date (date of the purchase contract/building permit). This means that if you sell an old house in order to build a new one, you will be eligible for building subsidies for the new house.
These are the documents you will need when applying for a building subsidy
In order to ensure that your application for child construction benefit is complete and can be processed quickly, you must submit the following documents to kfw:
- Certificate of registration of the municipality
- Income tax returns of you and your partner from the year before last and the year before last
- Land register excerpt
- Notarized purchase contract or building permit
To complete the application process, you will need to prove your identity using video identity verification or the postident process.
The amount and expiry of the payment of the building subsidy
If you are entitled to child building benefit, the state will pay you 1 euro per year for up to ten years.200 euro per child. Over the entire term, this results in a repayment subsidy of 12.000 euros per eligible child. The following table lists the income thresholds for the number of children and the total subsidy after 10 years of child allowance for construction projects.
|1 child||90.000 €||12.000 €|
|2 children||105.000 €||24.000 €|
|3 children||120.000 €||36.000 €|
|4 children||135.000 €||48.000 €|
|EACH ADDITIONAL CHILD||+ 15.000 €||+ 12.000 €|
Table: income limit with number of children including total amount of subsidy after 10 years
The child construction allowance is paid out annually at a rate of. To find out exactly when the first payment for your application will be made, please refer to the disbursement confirmation that kfw will send you.
What is the baukindergeld for??
In order to be eligible for the building subsidy, you must already be living in the property you have purchased. The building subsidy is therefore intended as a repayment subsidy for your real estate loan. As a homeowner, you should be able to use this money to pay off your debts to the bank more quickly. So the state helps them settle their construction loan. You can use the money as a special repayment, for example. It is also conceivable that you can save up the building subsidy over ten years and then use this sum as equity capital for the subsequent financing. This saving is also possible on a building savings contract.
However, the building child benefit should not be planned as a fixed component of your financing under any circumstances. Under certain circumstances, the funding may be canceled. This happens, for example, if you sell the house before the ten-year period has expired. This is why the building loan cannot be used as equity capital in the initial financing. In addition, they may not be eligible for subsidies and may not receive any building subsidy at all. This is the case, for example, if you have no children, exceed the income limit or have already bought another property.
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