Child benefit for building – Questions and Answers

By law enactment, child benefit for building – a government grant scheme to support families building homes – was introduced, on 05 July 2018. It aims to support young families to create their own homes, by supplying cash subsidies.

Does every family obtain child benefit for building?

Not at all, child benefit for building is attached to special conditions.

Under what conditions does a family receive child benefit for building?

Families with at least one child, being under 18 years of age and living in the same household, who have an annual taxable income of maximum 75.000,00 Euro plus 15.000,00 Euro per child, are eligible for this kind of child benefit.The subsidy amounts to 1.200 Euro, per child and per day, and is granted for the period of ten years.

For a better understanding: Each family with one child is allowed to have a maximum annual taxable income of 90.000 Euro and obtains a subsidy of 12.000,00 Euro, in total. In case of a family with two children, there is a maximum tax revenue of 105.000.00 Euro, and the total grant amounts to 24.000,00 Euro.

Apart from these financial conditions, two more criteria are to be met: The applicant aquires property for his own use, and besides, he does not own any further real estate assets. Child benefit for building is not a credit, but a subsidy, applied for through the KfW Bank.

When will the construction child benefit be paid out?

Child benefit for building is paid out in annual instalments. After a positive review of the supporting documents by the KfW Bank, the first grant instalment shall be transferred to the applicant´s account. You will find the specific date of payment on the confirmation paper which you have previously received from the KfW Bank. The further grant instalments will be remitted in the following nine years, always in the same month of the first payout.

Can you apply for construction child benefit retroactively?

Yes, indeed. Construction child benefit can be applied for retroactively, from 1st January 2018 on. That means, when you build or buy a house, in 2018 or later, you can submit your application. At the latest within six month after moving into residential property, you can make a request.


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Information about the author:

Alexandra Schneider is a certified bank business administrator and she writes about up-to-date topics, for FinanzierungsExpert.