What is the child allowance?
Child benefit and child allowance are intended to provide financial relief for parents and ensure the child's minimum subsistence level is tax-free.
The entitlement generally begins at the birth of the child. Child benefit must be applied for at the family benefits office.
The entitlement to child benefit and child allowance is not for the child themselves, but for the parents or guardians.
Child benefit
Child benefit is paid monthly and transferred directly to the parents' account.
The amount of child benefit depends on the number of children.
Child allowance
The child allowance is not paid out. Instead, it reduces the taxable income and thus the tax burden as part of the income tax return.
The tax office automatically checks whether the paid child benefit or the child allowance is more favourable for you. This automatic calculation is called the favourability test.
Child allowances in 2025:
- 6.672 Euro child allowance for joint assessment
- 3.336 Euro per parent for individual assessment
- 2.928 Euro care allowance for care, upbringing and education
How long is the entitlement?
Child benefit and child allowance can generally be considered:
- until the child's 18th birthday,
- until the 25th birthday if the child is, for example, in training, studying or doing voluntary service,
- with no age limit if the child cannot support themselves due to a disability.
What is the child allowance?
Is it possible to transfer the child allowances to another person?
Under certain conditions, the child allowance and the care allowance (allowance for care, education or training; BEA allowance) can be fully transferred to one parent.
This mainly applies to parents who:
- are not married,
- are permanently separated, or
- are divorced.
A simple agreement between the parents is not sufficient. What matters is whether the legal requirements are met.
When is a transfer possible?
A transfer is particularly possible if:
- one parent pays less than 75% of the maintenance owed,
- one parent cannot provide maintenance for financial reasons,
- the minor child is registered with only one parent,
- one parent lives permanently abroad, or
- the whereabouts of one parent are unknown.
If the child allowance is transferred, the care allowance is automatically transferred to the other parent as well since 2021.
For minor children, the other parent can object to the transfer of the care allowance if they are significantly involved in care, education or training.
When is significant care provided?
According to case law, significant care is generally provided if the other parent's share of care is on average at least 10%.
Particular consideration is given to:
- frequency and duration of care,
- the child's age, and
- the distance between the parents' homes.
Examples
Case 1: A child lives exclusively with the mother. The father pays less than 75% of the maintenance.
The mother can apply for the full child allowance and the full care allowance.
Case 2: The father pays sufficient maintenance but hardly cares for the child.
If the child is registered exclusively with the mother, she can apply for the full care allowance.
Case 3: The father regularly participates in the child's care.
He can then object to the transfer of the care allowance.
Transfer to grandparents or stepparents
If children live with their grandparents or a stepparent, the child allowance and care allowance can also be transferred to these persons under certain conditions.
The main requirement is that:
- the child lives in their household, or
- they actually provide maintenance.
The parents' consent must be proven with Annex K.
Is it possible to transfer the child allowances to another person?
When and how can I transfer the care allowance?
Since 2021, if the child allowance is transferred to one parent, the allowance for care, upbringing or education (care allowance) is automatically transferred as well.
This mainly affects parents who are separated.
A transfer may be considered if, for example:
- one parent pays no or insufficient maintenance, or
- the minor child is registered with only one parent.
The transfer is made in the child form.
The care allowance can be transferred for minor children under certain conditions without the consent of the other parent.
However, the other parent can object if they are significantly involved in the care, upbringing or education of the child.
Examples
Hans (12 years old) lives exclusively with his mother after the parents' separation.
Case 1: The father pays less than 75% of the maintenance owed.
The mother can apply for the full child allowance and the full care allowance.
Case 2: The father pays sufficient maintenance.
Then the mother can only apply for the care allowance if Hans is exclusively registered with her.
When and how can I transfer the care allowance?
How can the child allowance for a grandchild or stepchild be transferred?
If grandparents or stepparents have taken the child into their household, the child allowance and the care allowance can be transferred to them.
A transfer is also possible under certain conditions if the child does not live in the grandparents' household but they actually provide maintenance for the grandchild.
The prerequisite for the transfer is the consent of one parent or, in the case of jointly assessed parents, the consent of both parents.
Consent is given using Form K with the tax return.
Consent can be revoked for future years, but not retroactively for past calendar years.
How can the child allowance for a grandchild or stepchild be transferred?
What impact does my child's stay abroad have on the child allowance?
Child Allowance During a Stay Abroad
The child allowance and the BEA allowance (for care, education, and training) are also available to parents if their child lives abroad – provided the parents are fully liable to income tax in Germany.
Reduction of Allowances for Permanent Stay Abroad
The child's place of residence affects the amount of the allowances. Depending on the country of residence, they can be reduced by a quarter, half, or three quarters. The basis is the country group classification of the Federal Ministry of Finance, which is based on living costs. It affects:
- Child allowance
- BEA allowance
- Training allowance
- Childcare costs
No reduction
Child Benefit During a Stay Abroad
For children residing in an EU or EEA country, the entitlement to child benefit continues, provided no comparable family benefits are received abroad.
Outside the EU and EEA, child benefit is only possible if the child still has a domestic residence or their usual place of residence in Germany.
Conditions for a Continuing Residence in Germany
A child who lives longer than a year outside the EU or EEA is considered resident in Germany according to the BFH only if:
- appropriate living space is permanently available with the parents,
- they can use it at any time,
- and they use the accommodation regularly during non-term times (holidays).
(BFH ruling of 28.04.2022, III R 12/20)
Practical Advice for Longer Stays Abroad
- Short visits are not sufficient to maintain residence.
- Financial reasons do not excuse missing home visits.
- Parents should keep travel receipts and study documents.
Special Features for Studying Abroad
- For a one-year study abroad, the child benefit entitlement remains – even without a home visit.
- If the stay is extended, stricter requirements apply from that point (majority of time in Germany during holidays).
- Exam preparations abroad do not count as holiday time.
BFH rulings of 21.06.2023 (III R 11/21) and 20.02.2025 (III R 32/23)
Special Regulations for Social Security Agreements
In countries with a social security agreement (e.g. Turkey), special child benefit regulations apply. Please seek individual advice.
What impact does my child's stay abroad have on the child allowance?
