Everything you need to know about the family support scheme Baukindergeld (ended in 2023 – what is the alternative now?)

What makes Baukindergeld special?

• €1,200 per year for each child under 18, for up to 10 years.

• It was limited to purchase contracts or building permits issued between 1 January 2018 and 31 March 2021 (hypofriend.de, de.wikipedia.org).

• Eligibility expired if the application was not submitted within 6 months after moving into the property.

• It targeted families with an income of up to €90,000 (with additional allowances per child) (stonehedge-immobilien.de).

Why did it end?

The final application deadline for Baukindergeld was 31 December 2023.
After that date, no further applications have been accepted.

What is the current alternative?

To close the support gap, the “Wohneigentum für Familien (WEF)” programme was launched in June 2023—a subsidised KfW loan instead of the former direct cash benefit:

• A low-interest, subsidised loan (without a direct cash grant) ranging from €170,000 to €270,000, depending on the number of children and the household income (kfw.de).

• Aimed at financing the purchase or construction of highly energy-efficient homes, usually in line with Effizienzhaus or similar efficiency and sustainability standards (uni-regensburg.de).

• It targets families that meet specific income limits (for example €90,000 + €10,000 for each additional child) and offers long-term loans—typically around 20 years with fixed interest rates.

• The purchase of older, non-efficient existing properties that do not meet the required standards is generally not eligible within WEF. For such existing homes, a similar type of support has been available under the “Jung kauft Alt” programme since September 2024, supporting families who buy older houses and renovate them to Effizienzhaus-70 level (welt.de).

Quick comparison between Baukindergeld and WEF

Is it worth switching to the new scheme?

• If you are looking for direct cash support like Baukindergeld, the window has closed—this programme has ended.

• Around 80% of eligible families are reported to have used Baukindergeld before it expired (welt.de).

• The WEF programme offers very attractive financing conditions for essentially the same target group, but with strict conditions regarding energy efficiency and environmental standards. For families planning to build or buy a new, environmentally friendly and energy-efficient home, WEF can be an excellent option.

Conclusion

• Baukindergeld was a direct, tax-free cash benefit per child that ended on 31 December 2023.

• The “Wohneigentum für Familien (WEF)” programme from KfW is now the main successor, but in the form of a subsidised, low-interest loan tied to energy-efficiency requirements.

• Additional schemes such as “Jung kauft Alt” support families who buy older properties and renovate them to modern efficiency standards.

• Whether these new instruments are suitable for you depends on whether your purchase or construction plan fits the new criteria—especially energy-efficiency standards, income thresholds and the size of the financed amount—and whether you can comfortably carry the long-term loan obligations.

The editorial team of this website strives to provide accurate information based on thorough research and a review of multiple sources. However, errors may occur and some information may later turn out to be uncertain or outdated. For this reason, please treat the information in our articles as an initial point of reference and always consult the relevant authorities or qualified professionals for binding and up-to-date advice.