Acquiring homeownership is an essential part of life planning for many people. The federal government and states in Germany offer various support programs to help make the dream of owning a home a reality. These programs can significantly ease the financial burden of building or purchasing property. Here is an overview of the most important government support programs.

1. KfW Promotional Loans

The Kreditanstalt für Wiederaufbau (KfW) offers various promotional loans for private builders and buyers. These include low-interest loans for first-time property purchases or construction, energy-efficient renovations, and age-appropriate conversions. Of particular note is the KfW Homeownership Program, which provides long-term loans on favorable terms.

2. Baukindergeld

Baukindergeld is a government subsidy that supports families with children in acquiring homeownership. It is provided as a grant that does not need to be repaid. Families can apply for Baukindergeld for each child under 18 years of age, provided the taxable household income does not exceed certain limits.

3. Wohn-Riester

The Riester subsidy, known from private pension schemes, can also be used for the purchase or construction of an owner-occupied home. The government supports this through allowances and tax benefits. The requirement is that the property must be owner-occupied during retirement.

4. Social Housing

Social housing is a government support program aimed at lower-income households. The funding includes subsidized loans or grants for the construction or purchase of housing. The program is administered by the federal states, each with its own criteria and initiatives.

5. Inheritance Tax Exemption for Family Homes

When inheriting a family home from parents or grandparents, it may be possible to claim an exemption from inheritance tax under certain conditions. The key requirement is that the heir must use the home themselves for at least ten years.

6. State-Specific Support Programs

In addition to nationwide programs, individual federal states offer their own support measures. These vary in type and scope and may include grants, low-interest loans, or guarantees.