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Extended deadline for the Baukindergeld child allowance – how do I apply?

The Baukindergeld is a government subsidy for families with children who are purchasing residential property, regardless of whether they are building a new home or buying an existing property. The subsidy was previously set to expire at the end of 2020. It has now been extended by three months. This means that in order to still be able to apply for the Baukindergeld, you must have obtained a building permit, started a construction project, or concluded a purchase agreement by this deadline. Applications must be submitted to KfW.

Families or single parents with children who start building a house or buy a single-family home or condominium in the first three months of this year have something to look forward to. They will still be able to benefit from the Baukindergeld (child benefit for home buyers). This is a subsidy of €12,000 per child (€1,200 per year, spread over 10 years), which is granted if your household income does not exceed a certain amount. For two children, the income limit is €105,000. Furthermore, the new home must be your only residential property in order to be eligible for the Baukindergeld subsidy.

When, where, and how do you apply?

You can apply for the Baukindergeld online via the KfW subsidy portal, but only after you have moved into your new home. However, if you moved into your new home between January 1 and January 21, 2021, KfW asks that you wait until January 22 to submit your application due to the pandemic. You have six months from the date stated as your move-in date on your registration certificate. In principle, you can still submit an application until December 31, 2023.

What evidence do I need for the application?

First, you must verify your identity online via video identification or with Postident at a Deutsche Post branch. You will also need the following documents to apply for the 2021 Baukindergeld:

  • your tax returns for 2018 and 2019
  • the registration confirmation showing that all members of your household are registered at your new property
  • the land register extract in which you are listed as the owner or co-owner.

    The supporting documents must be uploaded no later than three months after the application is submitted.

How is the Baukindergeld paid out?

Once your Baukindergeld application has been approved, you will receive an annual payment of €1,200 per child for 10 years, which will be transferred to your account. However, this is only the case as long as you continue to live in your new home. If you move out and sell or rent out your property, you will no longer be eligible for the subsidy.

Are you looking for your dream property for which you can use the child benefit for home buyers? Then register now in our search database.

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Legal notice: This article does not constitute tax or legal advice in individual cases. Please consult a lawyer and/or tax advisor to clarify the facts of your specific case.

photo: © FamVeldman/Depositphotos.com

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