October 10, 2024, 10:40 am | Read time: 2 minutes
The child building allowance has been around for almost two years now. The benefit has many critics – but there are also thousands who are taking advantage of the money. If you still want it, you should hurry.
Almost two years after the Baukindergeld was introduced, around a quarter of a million families have used the subsidy to finance their homes. The volume applied for by the end of July amounted to 5.2 billion euros, according to the state-owned KfW Bank. Just a few months before the application deadline, a good half of the money had been allocated.
Baukindergeld – what is it all about?
Since September 18, 2018, families have been eligible for the state subsidy for building a house or buying a property. There is 12,000 euros per child, paid out in ten annual installments of 1200 euros each. For two minors, the amount is 24,000 euros, and 36,000 euros for three children. Consumers can use the subsidy to finance construction and ancillary purchase costs, for example. There are currently no plans to reintroduce the child building allowance.
The entitlement to the Baukindergeld expires soon
Anyone who receives planning permission or buys a property by the end of this year can still apply for the benefit. The application deadline is 2023, and a total of 9.9 billion euros is available. According to KfW, 43 percent of recipients have one or two children, while 11 percent have three. Two-thirds of Baukindergeld customers live with children up to the age of six.
The benefit has repeatedly been criticized, for example, for further boosting property prices or benefiting families who do not actually need the money. According to KfW data, around 60 percent of recipients have an average taxable household income of no more than 40,000 euros per year. The upper limit is 90,000 euros for one child and 15,000 euros more for each additional child.
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KfW carries out random checks
The KfW also carries out spot checks retrospectively to determine whether the claim actually exists. In a few cases, the money was reclaimed because the funding conditions were not met, as the spokeswoman said. In some cases, the funding ended because the recipients no longer owned the apartment or house. The figures were in the low three-digit range in both cases, according to the KfW.
The German original of this article was published in September 2020.