Apply for employee savings allowance

Prerequisites

• The employee savings contributions must be invested in eligible investment vehicles. Eligible investments include:
  • Home savings plans (for example: home savings contract, debt relief for residential property, loan repayment for owner-occupied properties)
  • Participation savings (for example: acquisition of shares, units in equity funds or certain stakes in the employer's company)
• Your taxable income during the savings year must not exceed certain limits.
  • Individuals:
    • For building society savings plans: 17,900 euros, from 2024: 40,000 euros
    • For participation savings plans: 20,000 euros, from 2024: 40,000 euros
  • Joint tax assessment of married couples/civil partners:
    • For building society savings plans: 35,800 euros, from 2024: 80,000 euros
    • For participation savings plans: 40,000 euros, from 2024: 80,000 euros

If both spouses or life partners are employed, both can claim the savings bonus.

You must submit your application for the employee savings allowance no later than the end of the fourth year following the savings year.

Does your taxable income exceed the aforementioned limits, but remain within the income limits for the housing construction premium? Then you can claim the employee savings contributions paid into a building savings contract as your own contributions towards receiving the housing construction premium.

Documents required

Please note

The employee savings allowance amounts to 9 percent of a maximum of 470 euros per year for certain expenses related to housing savings and housing construction promotion, and 20 percent of a maximum of 400 euros for other types of asset-building benefits.

The entitlement to the employee savings bonus arises at the end of the calendar year in which the employee savings contributions were invested. It is determined by the employee's local tax office upon application. Payment of the employee savings bonus requires a six- or seven-year commitment period. However, this does not mean that contributions must be made for the entire duration. The employee savings bonus is paid out

• upon expiry of the blocking period prescribed for the respective type of investment,
• upon expiry of the blocking and repayment periods specified in the Housing Premium Act or in the Ordinance for the Implementation of the Housing Premium Act,
• with the allocation of the building society savings contract, or in cases of harmless disposal.

Deadlines

Submit your application for employee savings allowance no later than the end of the fourth year following the savings year.

Procedure

• You apply for the employee savings allowance with your income tax return.
• You do not need to attach a certificate to your income tax return. Your provider will transmit the necessary data (electronic asset accumulation certificate) electronically to your tax office, provided you have consented to the data transfer.

Processing time

• The processing time depends on the general processing time for income tax.


• It usually lasts from a few weeks to several months.

Fees

no

Legal remedies

Objection

Legal basis

Section 13 of the Fifth Act on the Promotion of Employee Asset Formation (5th Asset Formation Act)


www.gesetze-im-internet.de/vermbg_2/__13.html




Section 6 of the Ordinance Implementing the Fifth Asset Formation Act (VermBDV)


www.gesetze-im-internet.de/vermbdv_1994/__6.html