Apply for an employee savings allowance
The employee savings allowance is a cash allowance granted by the state to promote investments for capital formation among employees. It is a state premium for capital-forming benefits.
Capital-forming benefits (Vermögenswirksame Leistungen, VL) are cash benefits that your employer invests for you, e.g. on the basis of a collective agreement, a company agreement or an employment contract.
The prerequisite for the state allowance is that your employer - and not you yourself - pays the capital-forming benefits into an investment account set up by you.
The employee savings allowance is
- Building society savings: 9% of the annual VL (maximum 43.00 euros)
- Participation savings: 20 % of the annual VL (maximum 80.00 euros)
If two eligible contracts are concluded (e.g. a building society savings contract and a securities savings plan), the allowances are granted side by side.
You can also claim the employee savings allowance if your employer does not pay any capital-forming benefits. In this case, ask your employer to deduct the payment into your investment account from your salary.
The tax office in whose district you live
- The capital-forming benefits must flow into eligible forms of investment. Eligible investments are:
- Building savings (e.g. building savings contract, debt relief for residential property, loan repayment for owner-occupied property)
- Participation savings (e.g. purchase of shares, share certificates in share funds or certain participations in the employer's company)
- Your taxable income in the savings year must not exceed certain limits.
- for building savings: 17,900 euros
- for participation savings: 20,000 euros
- Joint assessment of spouses/life partners:
- for building savings: 35,800 euros
- for participation savings: 40,000 euros
If both spouses or civil partners are employed as employees, both can claim the savings allowance.
You must have submitted the application for the employee savings allowance by the end of the fourth year after the savings year at the latest.
Does your taxable income exceed the above-mentioned limits, but is within the income limits for the housing construction bonus? Then you can claim the capital-forming benefits paid into a building savings contract as your own payments for the granting of the housing construction bonus.
The easiest way to apply for the employee savings allowance is to submit your income tax return.
You do not have to enclose a certificate with your income tax return. Your provider will transmit the necessary data (electronic capital formation certificate) electronically to your tax office, provided you have agreed to the data transmission.
at the latest by the end of the fourth year after the savings year
Since the 2017 savings year, your investment institution has been transmitting all necessary data (electronic asset statement) electronically to the tax authorities. The prerequisite is that you have agreed to the data transfer with your investment institution.