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Apply for housing subsidy


Expenses eligible for the premium to promote housing construction are, in particular, payments into a building savings contract, but also other payments, for example, for the first purchase of shares in a building or housing cooperative.

The housing construction premium amounts to 10 percent of your paid-in premium-privileged expenses each year. For each savings year, the maximum premium-privileged expenses to promote housing construction are:

  • EUR 700.00 if you are single, or
  • EUR 1,400 if you are married or have entered into a civil partnership (insofar as married couples / civil partners are jointly assessed in accordance with the LPartG).

The savings year is the calendar year in which you made the expenses eligible for the premium.

Note: The housing construction premium is not subject to income tax.

Process flow

You must apply for the housing subsidy at your investment institution. To do so, use the form sent to you by your investment institution together with the annual account statement.

Procedure for home savings contracts
The housing construction premium is only calculated and earmarked on a regular basis. The payment of the accumulated housing construction premiums to the building society - in favor of your building savings contract - is generally only made when the building savings contract is used for housing purposes.

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

  • this contract has been allocated,
  • the fixed period of 7 years since the contract was concluded has been exceeded, or
  • the building savings contract has been disposed of in a non-detrimental manner.

If you use the accumulated credit balance for any other purpose within the 7-year definition period, you will no longer be entitled to the housing construction bonus.

New contracts (concluded as of January 1, 2009):
In the case of payments into a home savings contract, the housing construction premium is only paid out when

  • this has been allocated,
  • the fixed period of 7 years since the contract was concluded has been exceeded,
  • you have not yet reached the age of 25 at the time the contract is concluded (if not used for housing construction) or
  • the building savings contract has been used for other purposes.

Competent authority

The responsibility lies with your building society and the tax office responsible for you.

Requirements

According to your 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 entered into a civil partnership (insofar as married couples / civil partners are jointly assessed in accordance with the LPartG).

Please note: You cannot receive the employee savings allowance and a housing construction premium at the same time for capital-forming benefits VL (for example, when paying into a home savings contract). This rules out the possibility of double benefits. For this reason, the expenses incurred to promote housing construction must not be VL for which there is an entitlement to an employee savings allowance. If you are unable to 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 construction premium and taken into account in the determination.

Which documents are required?

  • Application form sent to you by the investment institution together with the annual account statement.

What are the fees?

There are no costs involved.

Fee: free of charge

What deadlines do I have to pay attention to?

You must submit the application by the end of the 2 calendar year following the savings year.

Appeal

There is no legal remedy.

Technically approved by

State Tax Office of Lower Saxony

Professionally released on

17.03.2021

Author

The text was automatically translated based on the German content.

Data protection information


Landesbeauftragte für den Datenschutz Niedersachsen
Address: Prinzenstraße 5, 30159 Hannover
Timetable
Telephone: +49 511 12045-00
Fax: +49 511 12045-99

Source: Serviceportal Niedersachsen (Portalverbund des Bundes und der Länder)