Apply for a housing premium Unfortunately this specification of service has not yet been completely translated.

If you pay expenses to promote housing construction, you can apply for a housing premium. Expenses for the promotion of housing construction are in particular payments into a home savings contract, but also other payments, e.B. for the first acquisition of shares in a building or housing cooperative. The housing premium amounts to 8.8 percent of your expenses annually. For each savings year, the maximum expenditure to promote housing construction shall be: EUR 512.00 if you are single, or EUR 1,024 if you are married or have established a civil partnership. Savings year is the calendar year in which you paid the expenses. Note: The housing premium is not subject to income tax.

Application form that the investment institution will send you together with the annual account statement.


Preconditions
According to the income tax assessment, your taxable income for the savings year is not higher than: EUR 25,600 if you are single, or EUR 51,200 if you are married or have established a civil partnership. Attention: You cannot receive the employee savings allowance and a housing premium at the same time for capital-forming benefits. Thus, a double preferential treatment is excluded. Therefore, the expenses for the promotion of housing construction must not be capital-forming benefits (VL) for which there is entitlement to an employee savings allowance. If you cannot apply for an employee savings allowance, for example because you exceed the income limits, the VL can be included in the application for a housing premium.
You must apply for the housing premium at your investment institution. To do this, use the form that your investment institution has sent you together with the annual account statement. Procedure for home savings contracts Old contracts (concluded before 1 January 2009): In the case of payments into a home savings contract, the housing premium is only due if the statutory blocking period of seven years after conclusion of the contract has expired, or the accumulated credit (including the housing premium) from the contract is or is to be used immediately and directly for housing construction or other residential purposes after payment. If you use the accumulated credit elsewhere within the seven-year blocking period, the entitlement to the housing premium does not apply. New contracts (concluded from 1 January 2009): In the case of payments into a home savings treaty, the housing premium is only due if the statutory blocking period of seven years after conclusion of the contract has expired and you are not or were not older than 25 years at the time of conclusion of the contract, or the accumulated credit (including the housing premium) from the contract is or is to be used immediately and directly for housing construction or other residential purposes after payment.

Responsible for the content
Lower Saxony State Tax Office

Last update or date of publication
17.03.2021