Kindergeld in Germany: Your Complete Guide (2022)
It sounds too good to be true, doesn’t it: getting paid to have kids in Germany? But in many ways, it is true! From Kindergeld to heavily subsidized (or free!) child care, child benefits in Germany are plentiful. While there is no doubt that Germany has its fair share of costs (i.e. taxes, social contributions, and rules) you do get what you pay for. So whether you are considering moving abroad with your family or are planning on raising children abroad, get informed on all of the child benefits in Germany. Check out below all you need to know about Kindergeld in Germany.
What is Kindergeld in Germany?
Probably one of the most long lasting child benefits in Germany is Kindergeld. Translating quite literally to “Child Money’, this monthly payment is given to all parents in Germany, regardless of their income.
Think of it as a kind of payment to help make sure that all of your child’s basic needs are covered. The money is deposited every month into your bank account. So you can use it on everything from diapers to daycare!
Kindergeld is paid by the Family Benefits Office (Familienkasse) and handled by the Federal Employment Agency in Germany (Arbeitsagentur für Arbeit).
Who is entitled to claim Kindergeld in Germany?
Quite simply, any tax paying paying resident in Germany who has a child is entitled to claim Kindergeld. This is not only a parent, it applies to almost anyone who is directly caring for a child who lives with them:
Adoptive parents
Carers
Foster parents
Grandparents
Guardians
Step parents
Here are some other points of consideration of who can claim Kindergeld in Germany:
Non-German citizens who live and pay tax in Germany (immigrants or expats), as long as you have a valid Aufenthaltserlaubnis (temporary residence permit), EU Blue Card, or Neiderlassungserlaubnis (permanent residence/ settlement permit).
you should generally not be receiving any other similar benefit from your home country.
Your child is under 18 years old or one of the following exceptions applies:
Your child lives with you most of the time and you still care for them
Your child is still in school or volunteering (until age 25 or completion of first degree or certificate)
Your child is registered as a job-seeker with the Employment Agency and is currently unemployed (until 21 years old)
Your child had a disability before age 25 and cannot support themselves
Keep in mind, this benefit is only given on a per child, per family basis. In other words, only one parent can claim Kindergeld. Married couples will need to decide who receives it (i.e. which parent applies for it) - as it is deposited into one bank account each month whether that account is shared or not. If you and your partner are separated or divorced, the parent who has primary custody should claim child benefit.
How do I Apply for Kindergeld in Germany?
Child benefits in Germany such as Kindergeld are provided by the Family Benefits Office (Familienkasse) at the Federal Employment Agency (Arbeitsagentur für Arbeit).
After the birth of your child, there are a few documents you will need to fill out, print, and mail to your local Family Benefits Office. You will need to have your tax ID (Steueridentifikationsnummer) to complete these forms:
Complete the Antrag auf Kindergeld form, print and sign (both parents or care takers)
Complete the Child: Appendix form for each child
In this form you will need to put in your child’s German tax ID number. After proper registration of your child(-ren) following his/her/their birth, you will automatically be sent their tax ID documents via mail. One of these will specifically be labeled for the application for Kindergeld.
Your child’s birth certificate (Geburtsurkunde)
Three of these will be sent to you after registering your child’s birth in Germany
For non-EU/EEA citizens, include a copy of your residence permit
For EU/EEA citizens, complete this EU Annex form
Once you have anything prepared, put it in an envelope and mail to your local Family Benefits Office (Familienkasse). To find your local office, go here and put in your postal code.
For additional information on Kindergeld in Germany, they now have an easy to use online site. To read more about the terms and conditions for Kindergeld, you can read this english booklet provided by the Familienkasse.
How much Kindergeld will I receive?
As mentioned above, Kindergeld is paid out monthly to your (or your partner’s) bank account. How much you receive is dependent solely on how many children you have. Regardless of income, there is a standard amount paid per child.
How much Kindergeld in Germany you can receive in 2022 is:
219 euros each for the first two children.
225 euros for the third child.
250 euros for the fourth and above
If you are a low-income family, you may also be eligible for an additional child allowance called “Kinderzuschlag”. However, given the strict income conditions this allowance is only open to a select group of people. If you or someone you know who is living in Germany is struggling to provide for their family, we recommend reading more about Kinderzuschlag here.
How long is Kindergeld paid out?
One of the great aspects of Kindergeld is that it is a long-lasting child benefit in Germany. Usually, a family can claim Kindergeld until the child is 18 years old.
However, there are certain conditions where a family may continue to receive payments for a few years longer:
Your child is unemployed and registered as a job-seeker with an Employment Agency (up to age 21).
If your child is in education or training, such as University (up to age 25 or the completion of their first vocational qualification or degree).
Your child has a disability and cannot support themselves (up to age 25).
Tax-free Allowance for Children (Kinderfreibetrag)
Confused yet? No? Okay, hold on.
Depending on your income situation, you may alternatively be given Kinderfreibetrag in place of Kindergeld. Kinderfreibetrag is a kind of tax-free allowance wherein your taxable income is reduced in order to help you afford the same basic needs of Kindergeld. If you are an American, this is similar to how a tax credit works.
Whether you receive Kinderfreibetrag or Kindergeld is automatically calculated for you by the Finanzamt when you submit your application. There’s no need to try to calculate this out on your own (thank goodness!).
Furthermore, there is a great infographic on how this calculation occurs by Lohnsteuerhilfeverein Vereinigte Lohnsteuerhilfe eV., which you can take a look at here. Although this graphic is completely in German, it gives a great oversight on how Kinderfreibetrag is calculated. You can weigh which child benefit in Germany is most beneficial to your family.
As of January 1, 2021 married couples can deduct €8,388 from their taxable income.
Generally speaking, the majority of families in Germany receive Kindergeld rather than Kinderfreibetrag. The deduction reduces income tax and is only particularly useful for workers with a higher income. For married people, there is only a tax benefit from the child tax allowance compared to the child benefit paid from a taxable income of approx. 64,000 euros.
One additional point here comparing Kindergeld and Kinderfreibetrag is that Kindergeld will pay you every month. Kinderfreibetrag will only pay out when you file your taxes at the end of the year.
Do I Pay Tax on Kindergeld?
No. Kindergeld is not taxable in Germany. However as a parent you should still file German taxes and make declarations of your child-care related expenses. For example, having a Tagesmutter or being in Kita.
How to Change Address to Receive Kindergeld?
Did you change your address in Germany? You will need to notify the Familienkasse. To do this, you can complete the Veränderungsmitteilung (Notice of Change) form. The first box with the heading “Meine Anschrift hat sich wie folgt geändert” is what you will need to fill in.
How to Cancel Kindergeld in Germany?
If you decide to permanently leave Germany, you will need to cancel your Kindergeld application. You will need to complete the Veränderungsmitteilung (Notice of Change) form. The fifth box with the heading “Beschäftigung im Ausland bzw. Entsendung ins Ausland” is what you will need to fill in.
Infographic to help visually explain how Kindergeld in Germany works
Other Child Benefits in Germany
Reduced or Free Childcare (Kindertagesstätte)
Since 2013, all children in Germany aged 12 months and above have a legal right to a childcare place, which is (partially, but sometimes fully) subsidized by the state. From German Kitas, Kindergarten, and Tagesmutter’s (nanny’s), child care is regarded as an extension of a proper education and essential for child development. Therefore even private childcare in your own home with a Tagesmutter is subject to partial reimbursement from the state.
Contact your local city Office for Children, Youth and Family (Amt für Kinder, Jugend und Familie) for additional information.
Free Healthcare for Children
With a robust public statutory healthcare in Germany, health insurance is not only federally subsidized but incredibly inclusive when it comes to coverage. Where I grew up in the US, children are considered additional dependents on a parent’s health insurance plan, and are subject to an additional premium fee.
Additionally, in Germany dependent children are automatically covered under a parent’s statutory health insurance plan free of charge. Regardless of the number of children you have, you pay the same flat percentage of income for health insurance.
