Important changes in child benefit from 17

Longer term, no funding for property purchases from relatives

As of May 17, 2019, modified funding conditions for child benefit (KfW program 424) apply. Positive for families: The application period is extended. After moving in, they will have 6 months instead of 3 months to apply for child benefit. However, there are also clarifications regarding eligibility and eligibility requirements. The purchase of real estate from relatives is no longer eligible.

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More time for the application: From mid-May 2019, the funding conditions for child benefit will change

Photo: action per home

New application deadlines apply to all applications for child benefit received by KfW from May 17, 2019. Families have a longer deadline to submit an application: The application for child benefit must be submitted no later than 6 months after moving into the owner-occupied residential property (previously 3 months). If a household member moved in more than 6 months ago, an application is no longer possible. An application before moving in is also not permitted.

Buying property from relatives is no longer eligible for child benefit
There will also be changes to the funding conditions from mid-May. In this way, it was specified in which cases the construction child allowance would not be an option. The following are not funded:

  • Vacation or weekend homes as well Apartments
  • the transfer of home ownership by way of (anticipated) succession, wills or gifts
  • the acquisition or transfer of ownership between spouses, life partners or partners in another long-term partnership
  • the acquisition or transfer of ownership between relatives of a household member in a straight line (for example: children, parents, grandparents, great-grandparents)
  • the purchase of residential property that was previously owned by a household member

This information must contain the registration confirmation for the child benefit
The requirements for the registration confirmation were also specified: When buying an already used residential property (for example: buying the rented apartment), applicants must – since there is no move – instead of the registration confirmation a registration certificate issued after the application and an informal declaration about the purchase of the rented property Submit. The registration confirmation or registration certificate must identify the funded residential property as the main or sole residence of the applicant, the children specified in the application and the spouse or life partner or partner from a marriage-like community. It must include the children’s date of birth.

KfW is also entitled to request additional documents to demonstrate compliance with the funding conditions.

Information requirements for child benefit
Families who receive the child benefit are obliged to inform KfW immediately in writing if

  • the applicant no longer uses the subsidized residential property as their main or sole residence
  • the applicant is no longer at least a co-owner of the subsidized residential property or
  • on the household there is no ownership quota of less than 50% of the subsidized residential property (according to the land register entry).

Questions about child benefit?


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Christina Cherry
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