Apply for a housing premium

If you pay premium-advantaged expenses to promote housing construction, you can apply for a housing premium.

Premium-favoured expenses for the promotion of housing construction are in particular payments into a home savings contract, but also other payments, for example for the first acquisition of shares in a building or housing cooperative.

The housing premium amounts to 10 percent of your premium-advantaged expenses per year. For each savings year, the maximum amount of eligible expenditure to promote housing construction shall be:

  • EUR 700.00 if you are single, or
  • EUR 1,400 if you are married or have established a civil partnership (if spouses / life partners assessed together according to the LPartG).

Savings year is the calendar year in which you paid the premium-benefiting 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 35,000 if you are single, or
  • EUR 70,000 if you are married or have established a civil partnership (if jointly assessed spouses / life partners according to the LPartG).

Attention: You cannot receive the employee savings allowance and a housing premium at the same time for capital-forming benefits VL (for example, when paying into a home savings contract). Thus, a double preferential treatment is excluded. Therefore, the expenses for the promotion of housing construction must not be VL, for which there is a right to 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 and taken into account in the determination.

Related Links

  • Housing Premium Act (WoPG)

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
The housing premium is regularly only determined and reserved. The payment of the accumulated housing premiums to the building society in favor of your home savings contract is generally only made when the home savings contract is used for housing purposes.

Old contracts (concluded before 1 January 2009):
In the case of payments into a home savings contract, the housing premium is only paid out if

  • allocated to it,
  • the determination period of 7 years since conclusion of the contract has been exceeded or
  • harmlessly disposed of the home savings contract.

If you use the accumulated credit elsewhere within the determination period of 7 years, 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 contract, the housing premium is only paid out if

  • allocated to it,
  • the determination period of 7 years since conclusion of the contract has been exceeded,
  • you have not yet reached the age of 25 at the time of conclusion of the contract (if not used for residential construction) or
  • harmlessly disposed of the home savings contract.

Responsible for the content
Lower Saxony State Tax Office

Last update or date of publication
17.03.2021