To provide financial support for families buying or building their own home, the German government launched the Baukindergeld (child construction allowance) in September 2018. The state subsidy totaling 12,000 euros per child is subsidized for ten years with a contribution of 1,200 euros per year and does not have to be reimbursed. The prerequisite for applying is that the property was or will be purchased or built between January 01, 2018 and December 31, 2020.
The building child allowance is aimed at families and single parents who have at least one minor child living in their household for whom child benefit is already being received. Likewise, the total annual income must not exceed 90,000 euros. If two or more children live in the household, the maximum household income limit is increased by 15,000 euros for each additional child. Likewise, it is a prerequisite for the application that it is the family's only property and that the total amount of this property is less than the subsidy amount.
According to figures from the Federal Ministry, the Baukindergeld is very popular. Since the application period began, around 135,000 families have applied for funding. The majority of applicants are young families with a household income of less than 40,000 euros a year. The German Real Estate Association (IVD) sees the "Baukindergeld" as a great success. For this reason, the IVD is calling on the federal government to lift the time limit on the Baukindergeld and provide further subsidies.