Hessengeld decided: New funding program in Hesse

Hessengeld decided: New funding program in Hesse

Hessengeld is an initiative of the Hessian state government that aims to make buying real estate easier. Since the new state government took office in January 2024, Hessengeld has been implemented as one of the goals set out in the coalition agreement. The CDU and SPD decided on the key points of the program on April 22nd in the new development area “Am Hainweg” in Wiesbaden. The Hessengeld applies retroactively to purchases from March 1, 2024 and is scheduled to be paid out for the first time in the same year.

The funding of the Hessengeld is tied to certain criteria. It is aimed at people who are purchasing a property in Hesse for the first time and have to pay property transfer tax. Financial support varies depending on the household constellation. For example, first-time buyers of a house receive 10,000 euros from the state, supplemented by 5,000 euros for each child under 18 who moves in. The funding corresponds to the amount of the real estate transfer tax actually paid and is paid out in equal installments over ten years.

The opposition criticizes the Hessengeld as an expensive project with a limited effect on the creation of affordable housing. Nevertheless, the state government estimates that around 23,000 real estate purchases every year could be relevant for the Hessengeld. Applications for Hessengeld must be submitted digitally and require various documents, including identity cards, the purchase contract and the property transfer tax notice with proof of payment.

The implementation of the Hessengeld currently requires patience as certain forms and application options are not yet available. The state government informs that buyers do not have to do anything for the time being in order not to jeopardize their claims. The initiative is intended to relieve the financial burden on people who are purchasing a property for the first time and make it easier to access their own home.