Kinderfreibetrag or Kindergeld?

Who actually is entitled to Kindergeld

This is the first issue recent arrivals should sort out: if you are entitled to Kindergeld, the tax office takes the benefit into account when calculating the allowance, even if no application has been made.

Non-EU nationals

The law sets out an exhaustive list of grounds. You have the right if you:

A frequent and expensive mistake: a visa is not a residence permit. As a rule, Kindergeld is not granted on a national visa; the entitlement arises after receiving a residence permit. An exception is possible if it clearly follows from the duration and conditions of the visa that it has been issued for a purpose that regularly leads to an “eligible” residence permit.

Ukrainians with a residence permit under Section 24 of the Residence Act

Yes, the right exists. Paragraph 24 is not included in the list of exceptions, so the general rule applies: a residence permit allowing work for at least six months is required. At the same time, the child must be in Germany, the EU, the EEA or Switzerland.

What you will need: A residence permit under Section 24 for a parent and for the child, confirmation of the child’s place of stay. For applications covering the period up to June 2022, proof of employment is additionally required. For full orphans and children who do not know where their parents are, a residence permit under Section 24 for the child themselves is sufficient — without requirements regarding work and length of residence.

EU citizens: the three-month rule

An EU or EEA national who has just moved to Germany does not receive Kindergeld for the first three months — unless they prove receipt of income generated in Germany. This also applies to holders of Polish, Bulgarian, Romanian and Baltic passports.

Workers from countries with which there are treaties

Citizens of Algeria (under a separate agreement — please check), Bosnia and Herzegovina, Kosovo, Morocco, Montenegro, Serbia, Tunisia and Turkey can receive Kindergeld if they work in Germany: intergovernmental agreements put them on an equal footing with local workers.

If a child lives abroad

This is where the line is drawn — German websites mention it only in passing, but for our readers it is decisive.

And another rule worth knowing is that if a comparable allowance is paid for the child abroad, German Kindergeld is not paid even if the foreign one is smaller. The exception is EU and EEA countries and Switzerland: the difference is paid there.

The Kinderfreibetrag is reduced for a child living abroad

If the child is not subject to unlimited tax liability in Germany, the allowance is reduced depending on the country of residence — in accordance with the official country classification of the Federal Ministry of Finance, which applies from 1 January 2025:

The same classification applies to the childcare allowance and the education allowance. Please note that a reduced allowance and ineligibility for Kindergeld are two different things; they can also occur independently of each other.

How to submit an application and not lose money

New: Kindergeld without application. On 9 July 2026, the Bundestag passed a law under which Kindergeld will be granted automatically. The first stage starts in March 2027: for the second and any further children of families already receiving Kindergeld. The second stage follows at the end of 2027: for the first child. This is how it works: the registry office transmits the birth data, the newborn is assigned a tax ID, the information is passed to the Familienkasse, and the payment is made to the account already on file. Practical tip: Make sure in advance that your IBAN in the tax system is up to date – it can be entered via your ELSTER personal account.

What else do you get for a child besides Kindergeld?

Kinderfreibetrag is just one of the allowances, and often not the largest one. Here is the full list of what is worth checking.

Tax reliefs

Payments and benefits

Important information about Kinderkrankengeld: The law has established increased periods of 15 and 30 days for the 2026 calendar year only. From 2027, if the rule is not extended, the standard 10 and 20 days will apply (maximum 25 and 50).

Elterngeld (parental allowance): key figures

In 2026, the Elterngeld reform is being discussed: a reduction from 14 to 12 months using the “3-6-3” model, an increase of the minimum to €330 and the maximum to €1,900, and the abolition of the partner bonus. This is only a draft at the stage of interdepartmental consultation; the Bundestag has not yet considered it.

Divorce and separation: how the allowance is divided

By default, each parent receives half: €3,414 for the subsistence minimum and €1,464 for care and education. However, you can have the other parent’s half transferred to you.

The claim is submitted in the tax return, in the Anlage Kind attachment. Transfers only work when the parents are not filing a joint return.

What is planned for 2027–2028

This is not yet law. The coalition agreed on the figures on 1 July 2026, and the Ministry of Finance’s draft appeared in August. The ministry itself is phrasing it cautiously — “presumably in two stages”. Adoption is expected by the end of 2026, and the final amounts are tied to the official subsistence minimum report and may change.

Frequently asked questions

Can you receive both Kindergeld and Kinderfreibetrag?

No. The tax office itself compares which is more advantageous and applies one of the options. If the deduction wins, the Kindergeld due for the year is added back to the tax. There is no need to choose, but you must apply for Kindergeld: the benefit is taken into account in the calculation anyway — even if you didn’t receive it.

Why did the salary barely change after having a child?

Because the child allowances that appear in your payroll tax data (ELStAM) have no effect whatsoever on income tax withholding. They only reduce the basis for the solidarity surcharge and church tax. In 2026, the solidarity surcharge is only paid on tax exceeding €20,350 per year (€40,700 for married couples filing jointly), so for most families, only the church tax has a real effect. The main calculation for the deduction takes place once a year — when filing the tax return.

The child has turned 18. Will Kindergeld stop?

Not automatically. Kindergeld continues until the age of 21 if the child is registered as a jobseeker, and up to the age of 25 if the child is in education, vocational training or voluntary service, or in a transition period between stages of education (maximum four months). In the event of a disability that occurred before the age of 25, there is no age limit.

The child has a part-time job. Will we lose Kindergeld?

The limit on a child’s own income was abolished in 2012. While the child is still in their first course of education or training, part-time work is no obstacle at all, whatever the hours. After the first course is completed, Kindergeld continues only if the child works no more than 20 hours a week, has a Minijob (marginal employment) or is on a training contract.

Will children over 18 automatically appear in my payroll tax data (ELStAM)?

No. Only children under 18 who are registered in Germany are automatically included. For children over 18 and for children without German registration, a separate application must be submitted to the tax office.