Housing premium Unfortunately this specification of service has not yet been completely translated.

The housing premium amounts to 8.8 percent of the expenditure to support housing construction up to a maximum of EUR 512.00 for single persons and EUR 1,024.00 for spouses and registered civil partners.

Application form, which will be forwarded to you by your investment institution together with the annual statement of accounts.

Housing premium can be applied for by those who have reached the age of 16 (at the latest at the end of the year), whose taxable income does not exceed EUR 25,600.00 and who has incurred expenditure to promote housing (e.g. deposits on a building-saving contract or expenses for the first acquisition of shares in a building and housing cooperative). In the case of co-assessed spouses/partners, the income limit is EUR 51,200.00. If you are entitled to tax allowances for children (per child and parent 3,624.00 euros, for 2017: 3,678.00 euros, for 2018: 3,714.00 euros), these allowances reduce the taxable income when checking the premium entitlement even if the child benefit was more favorable when determining income tax. Expenditure to support housing construction may also be capital benefits (VL) if there is no entitlement to a worker's savings allowance. If you do not qualify (e.g. because you are not entitled to an employee savings allowance (e.g. because you have exceeded the relevant income limit of 17,900.00 euros or 35,800.00 euros for co-assessed spouses/partners), you can include the VL in the application for a housing premium. It is not possible to receive an employee savings allowance and a housing premium for capital-effective benefits at the same time.
The housing premium must be applied to the investment institution on the form sent to you by your investment institution together with the annual statement of accounts within 2 years of the end of the savings year. Old contracts (concluded before 01.01.2009): In principle, the fixed housing premium is only due when the statutory blocking period of 7 years has expired or the building-saving contract has been allocated. In certain cases (e.g. unemployment or incapacity for work), early payment is possible. The right to a housing premium shall be waived retroactively if the subsidised assets are withdrawn before the end of the blocking period/before the allocation of the building-saving contract and there are no grounds for premature use which is harmless to support. New contracts (concluded from 01.01.2009): In principle, the housing premium is paid only for residential use. The fixed premium for building savings contributions is therefore only paid if the construction savings amount is used immediately and directly for housing at the earliest at the time of allocation. The use of the credit, which is permitted in the case of old contracts after the expiry of the blocking period, also for other non-residential purposes is no longer favoured for new contracts from 2009 onwards. Exception: If you have not yet reached the age of 25 at the time of conclusion of your building-saving contract, you can dispose of the entire amount of the balance without any obligation after 7 years without a commitment to the specifics. However, this derogation can only be used by any saver for one contract. In certain cases (e.g. unemployment, incapacity for work), use for purposes other than housing does not result in the loss of entitlement to premiums. The right to a housing premium shall be waived retroactively if the subsidised credit is used prematurely or is not used for housing, despite its earmarking, and there are no grounds for non-promotional use. Like the employee savings allowance, the housing premium is not a taxable income.

Responsible for the content
Hessian Ministry of Finance

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