Germany

Individual - Other tax credits and incentives

Last reviewed - 30 June 2021

Child benefits

Depending on criteria like residency status, age of the children and possibly social security status, qualifying families will receive a monthly child benefit for dependent children. This amounts to EUR 219 per month for each of the first two children, EUR 225 per month for the third child and 250 EUR per month for the fourth and each additional child.

In addition, for dependent children a one time cash bonus of EUR 300 per child in 2020 and of EUR 150 per child in 2021 is paid.

The mentioned benefits and bonus payments are offset against a potential tax relief from the lump sum deduction of the child allowance of EUR 4,194 per parent when calculating the taxable income, so that by way of better off test finally only either the mentioned benefits and bonus payments are granted or the lump sum deduction of the child allowance. 

Other tax credits and incentives

There are no other significant tax credits or incentives for individuals in Germany.