Pay out home ownership allowance

Your entitlement to payment of the annual subsidy of a maximum of 1,250 euros, plus 800 euros for each child, is also associated with the decision on the determination of the home ownership allowance.

Your entitlement to payment of the annual subsidy of a maximum of 1,250 euros, plus 800 euros for each child, is also associated with the decision on the determination of the home ownership allowance. The funding period is generally eight years. It begins with the year of purchase or completion of the apartment.

  • Bank details for the payment of the home ownership allowance

Preconditions

The prerequisite for the payment of the home ownership allowance is the determination of the home ownership allowance with a corresponding decision from the responsible tax office.

The prerequisite for this is in particular that

  • You have started with the production of the object in Germany until 31.12.2005 . In the case of objects for which a building permit is required, the start of production shall be the date on which the building application is submitted ; in the case of objects without a building permit for which building documents (e.B. a building notice) must be submitted, the time at which the building documents are submitted applies. In the case of construction measures that do not require a building application or the submission of construction documents, the time at which the claimant begins construction work is decisive.
  • You use the property for your own residential purposes or leave it free of charge to close relatives for residential purposes.
  • You submit an application to the tax office according to an official form.
  • Your income in the first year and in the previous year does not exceed a certain amount limit.

You are obliged to immediately notify the tax office of any change that leads to a change or the discontinuation of the home ownership allowance within the funding period. Changes are in particular:

  • the birth of another child, the termination of the child's vocational training, the change in the child's income, this may change the amount of the child supplement;
  • the granting of subsidies, which may change the basis of assessment and thus the amount of the home ownership allowance;
  • Separation of spouses
  • no longer use for own residential purposes or for free housing purposes of relatives.

Hints

The state-specific Bavarian home ownership allowance is a different subsidy.

Related Links

  • Owner's Housing Allowance Act (EigZulG)

The decision on the determination of the home ownership allowance also includes the information on the payment of the subsidy.
For the year of notification of the decision and the preceding years, the home ownership allowance must be paid within one month of notification of the decision, for each additional year of the eligibility period on 15 March. In most cases, however, the payment takes place at the same time as the notification of the decision. For the following years, the payment is made without an application and is based on the determination decision of the first year. This means that if the circumstances of the beneficiary do not change during the funding period, a one-time application is sufficient to receive the home ownership allowance for eight years.
However, if the new determination results in an increase in the home ownership allowance, the difference must be paid within one month of notification of the decision.
If the new determination results in a reduction in the home ownership allowance or if the determination is cancelled, overpaid amounts must be repaid within one month of notification of the decision.


Responsible for the content
Lower Saxony Ministry of Finance

Last update or date of publication
25.11.2020