ALL YOU NEED TO KNOW ABOUTBaukindergeld
ImportantYour Income limit
Do you know if you are lucky enough to meet the preconditions to receive the government’s gift, known as “Baukindergeld” to promote homeownership among families? Do you know what criteria needs to be met? For instance there’s your taxable household income which must not exceed 90.000 Euro. Do you know the difference between your gross annual salary and your taxable income? If your taxable income of you and your spouse is above 90.000 Euro, then there’s no need for you to continue reading this article, because then you will not receive Baukindergeld.
Are you not sure about your taxable household income? Then this simple calculation might help: take your mutual gross annual salary and subtract special expenditures like exceptional costs, tax-free child allowance(s) and deductible income or administrative costs. The result is your taxable household income. If you want to apply for the “Baukindergeld” then the last two years of your taxable household income are important.
Example: A couple with two kids has a mutual annual salary of 92.000 Euro. Using an online tax-calculator where you can roughly fill in your annual special expenses or extraordinary charges, they find out that their annual taxable household income amounts to about 74.000 Euro. Congratulations! You are able to apply for the Baukindergeld.
Your taxable income exceeds the income limit? Then there are other options to consider if you are interested in buying or building property. Please contact us and we will be happy to assist you.
You want someone who assists you with this new help-to-buy scheme? Don’t hesitate to contact us!
Good To KnowBaukindergeld
What are the prerequisites?
Children. The more, the better. Plus: Low income. That about sums it up. The more children you have, the more Baukindergeld the government will pay. For each child you will receive a subsidy of 1.200 Euro Baukindergeld per year over a period of ten years. That makes a total of 12.000 Euro per child. If, for example you have three children (who meet the eligible criteria), then you can count on a total maximum amount of 36.000 Euro Baukindergeld.
What makes a child eligible?
- The child lives in your household, and is under 18.
- You or your partner are entitled to child benefit.
What can you use the subsidy for?
The clear purpose of the “Baukindergeld”: to help finance families to buy or build property. An apartment, a house – no matter if it is protected as a historic monument or needs complete renovation. But: your new apartment/house needs to be owner-occupied property, which means you have to move in yourself. Once you have moved into your new home, you are able to apply for this government aid. When moving out, the KfW (the credit bank you will receive the Baukindergeld from) needs to be informed. You will not have to pay the credit bank back for the years that you have lived in your own property. If, for instance, you will sell your house/apartment due to a job-related move and you buy a new house/apartment in another city/region than the subsidy will be continued.
You are more interested in buying property as a means of capital investment? Then please continue reading here.
What are the deadlines for the “Baukindergeld”?
The first target date you need to know is September 18th, 2018. This is the first date to apply for Baukindergeld at the KfW. This credit bank will pay out the subsidy backdated to January 1st the same year. This means: the purchase/or granting of building permit cannot be before January 1st in 2018 to make you eligible for this government aid.
What documents do I need to apply for Baukindergeld?
- Certified extract from the land register (Grundbuchauszug) or in some cases the priority notice of conveyance (Auflassungsvormerkung) is sufficient.
- Child benefit notices (Kindergeldbescheide) of all children who live with you.
- Individual income tax return notices (Einkommenssteuerbescheid) of the 2nd and 3rd calendar year before application. If, for example, you are applying in 2018, then you need the income tax return notices for the years 2015 und 2016.
- Residential registration certification (Meldebestätigung): applies to all members of the household.
Bavarian Baukindergeld
Yes, Bavarians like to make exceptions for everything. This is why there also exists a “Baukindergeld Plus for Bavaria”. So instead of the 1.200 Euro help-to-buy/build payment you will get an extra 300 Euro for every child. You are a Bavarian resident with 3 children? Great! This means you can count on receiving an additional 9.000 Euro. You have probably also heard of the “Eigenheimzulage”, an additional subsidy of 10.000 Euro, which only Bavarian residents can get when buying property. This is a one-time help-to-buy/build payment by the Bavarian government that not only families will profit from, but everyone who buys or builds property. The target date for the Baukindergeld Plus is also the 18th of September 2018. More detailed information about the Baukindergeld Plus you will find here: baukindergeld.bayern.de.
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