Housing subsidy: the state subsidy for the purchase of real estate

The housing subsidy is a state subsidy that you receive for your building savings contract or for the purchase of cooperative shares and do not have to pay back. How to get it is shown in this article.



What is the housing subsidy?

The housing subsidy is a state subsidy for building savers. With this subsidy, the German government supports anyone who wants to buy, build or renovate their own home. The subsidy rate is 10% since the beginning of 2021. The income limits have also been raised, so that more people can now benefit from the government subsidy. Eligible borrowers do not have to repay the state subsidy. The term "home savings bonus" is often used as a synonym for housing bonus.

  • Building interest calculator
  • Current building interest rates
  • Construction financing without equity capital
  • KfW loan
  • House costs
  • Follow-up financing
  • Modernization loan
  • Construction financing calculator

Who can receive a housing subsidy?

Anyone who has unlimited tax liability in Germany and is over 16 years old can apply for the housing subsidy. In addition to this requirement, there are other conditions laid down in the Housing Premium Act:

  • Permanent residence in Germany
  • Income limit must be met
  • A minimum of € 50 per year must be paid into the savings contract itself.
  • She has not applied for any other state subsidy, such as the employee savings allowance.
  • The money is used for housing purposes.

Those who buy shares in building and housing cooperatives or participate in them can also benefit from the housing construction premium.

Use our construction interest calculator to determine the construction interest and monthly rate for your financing:

What are the income limits for the housing subsidy??

The income limits to receive housing subsidies depend on your life situation.

  • For singles: 35.000 €
  • For married couples or civil partnerships: 70.000 €

Taxable income is calculated on the basis of gross income minus allowances such as child benefit, income-related expenses or special expenses. People who have a higher gross salary can also be entitled to a housing premium thanks to tax allowances. It is best to take a look at your tax statement, which you receive from the tax office every year. It states how high one's own taxable income is.

The housing subsidy does not have to be taxed at the tax office. The Housing Construction Premium Act states under § 6: "The premiums do not belong to the income in terms of the Income Tax Act."

What is the amount of the state housing subsidy??

Since 2021, the state has been subsidizing savers each year with 10% of the annual contributions paid in. The maximum subsidized savings amount for singles is 700 € and for married couples or civil partnerships 1.400 €. This means that singles receive a maximum of €70 and couples €140 per year from the state for their savings. In total, eligible persons can apply for the home savings bonus for 10 years.

If you receive capital-forming benefits but exceed the income limits for the employee savings allowance, you can also apply for the housing savings premium for this purpose. However, home savings bonus and employee savings allowance cannot be applied for the same home savings contract. So you apply for either the housing bonus or the employee savings allowance.

Housing subsidy: Example calculation

Luise is a student and has just taken out a home savings contract to save equity for an apartment. Because she does not have so much money available at the moment, she initially pays 10 € into the building savings contract every month. After one year she has saved 120 €. From the state, they then receive another 10% of the sum saved as a housing bonus, i.e. € 12.

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