Photo: Living idea
Money for the dream house
You do not have to bear the costs of your new home alone: The state helps you with the financing - with the "Residential Riester"
Employees liable to pay pension contributions and civil servants can contribute at least four per cent of their income, a maximum of EUR 2, 100, to a residential Riester contract each year. The state takes over 154 euros as a supplement for adults, for children there are 185 euros - or 300 euros, if the offspring was born from 2008. For young professionals under 25 years there is in addition to the residential Riester promotion once a bonus in the amount of 200 €.
A married couple with two children (a child born before 2008) can receive a maximum of 793 Euro allowance. Brings this family the highest savings amount of 2, 100 euros annually (including allowances), come after 20 years without interest 42, 000 euros together, in the state are then 15, 860 euros included. Residential Riester has other pluses: The savings contributions including allowances can be claimed as special expenses.
With high tax progression, this leads to additional tax savings beyond the allowances. And: If one brings the subsidized contributions over 2, 100 euros annually, for example, immediately to the repayment of a mortgage over 100, 000 euros with an interest rate of five percent, you save after 20 years, even around 13, 000 euros additional loan interest.
Anyone who already owns a normal Riester contract, can now also use the saved there to directly use it for the construction or purchase of a self-used property, because it is recognized as equity.
Upon retirement, it is also possible to use the subsidized credit for debt relief of the own property. Until now, these alternative uses were only possible to a limited extent.
Residential Riester - and that's how it works:
With the conclusion of the Residential Riester contract, the customer instructs its bank, z. For example, a bank or building society must apply for the allowances due for each year of contributions with the Central Allowance Office for Old Age Assets (ZfA). Upon retirement, the subsidized deposits, allowances and tax benefits are taxed.
Further information about Wohn-Riester also at www.finanzministerium.de
