Apply for employee savings allowance

You can apply for the employee savings allowance.

Detailed description

The employee savings bonus is a government subsidy that helps you build wealth through specific savings plans. It is part of government incentives to promote wealth accumulation and is designed to ensure that you utilize employee savings schemes (VL).

You can apply for the employee savings allowance as part of your income tax return.

Information

Important notes

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

You submit the application for the determination of the employee savings allowance with your income tax return.

Please note

The employee savings allowance amounts to 9 percent of a maximum amount of 470 euros per year for certain expenses related to housing savings and housing construction subsidies and 20 percent of a maximum of 400 euros for other types of capital-forming benefits. The entitlement to the employee savings allowance arises at the end of the calendar year in which the capital-forming benefits were invested. It is determined by the tax office of the employee's place of residence upon application. Payment of the employee savings allowance requires a six- or seven-year commitment period. However, this does not mean that contributions must be made for the entire term. The employee savings allowance is paid out. upon expiry of the lock-up period prescribed for the respective investment form, upon expiry of the blocking and repayment periods specified in the Housing Premium Act or in the Ordinance Implementing the Housing Premium Act, with allocation of the building 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 & Fees

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

Legal notes

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

Find out your responsible facility

Last updated: 16.02.2026