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Tax consequences of giving up the owner-occupation of your subsidized apartment

Service Description

Your home subsidy account records the retirement provision home amount, the repayments and the allowances granted for this.

The home subsidy account is managed by the Central Allowance Office for Pension Assets (ZfA).

If you no longer use your tax-subsidized property yourself or give up ownership of it, your housing subsidy account will generally be closed.

You must pay tax on the resulting liquidation amount.

However, your housing subsidy account will not be closed immediately if, for example

  • resume owner-occupation of your property within 5 years,
  • make an equivalent reinvestment in another property within a certain period after giving up owner-occupation, or
  • you are no longer able to use the subsidized residential property yourself due to illness or care, but you remain the owner.

Process flow

  • You notify the ZfA or your provider that you no longer use your home yourself or that you have given up ownership of it.
  • Your home subsidy account will be closed.
  • The ZfA calculates the amount of the closure and sends you a notification.
  • The ZfA will inform your provider and the tax office responsible for you.

Competent authority

Central Allowance Office for Retirement Assets (ZfA) of the German Pension Insurance Association

Requirements

  • You have used the retirement savings capital from your certified retirement savings contract with subsidized contributions for the homeowner pension subsidy (Wohn-Riester).
  • You no longer use your home yourself.
  • You give up your ownership of your tax-subsidized property.

What are the fees?

There are no costs.

What deadlines do I have to pay attention to?

There is no deadline.

Processing duration

Processing Time: 0 - 4 Weeks

Legal basis

Applications / forms

  • Appeal
  • Action before the tax court

What else should I know?

There are no indications or special features.

Further Information

Author

Central Allowance Office for Retirement Assets (ZfA)


Forwarding service: deep link to the original portal

The text was automatically translated based on the German content.

Technically approved by

Federal Ministry of Finance (BMF)

Professionally released on

27.03.2024

Source: Zuständigkeitsfinder Thüringen (Linie6Plus)

No competent authority found

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