Hessengeld decided: regulations and application

Hessengeld decided: regulations and application

The Hessian state government has decided to introduce Hessengeld retroactively from March 1, 2024. This measure aims to create property transfer tax allowances to enable more people to buy a home, especially young families. According to the established key points of the Hessengeld, first-time buyers of a house receive 10,000 euros from the state, plus 5,000 euros for every child under 18 who moves in. The payment is made in installments over ten years, up to the amount of the real estate transfer tax actually paid.

A critical voice against the Hessengeld comes from the Greens, who see the project as expensive with limited impact on the creation of affordable housing. It is emphasized that the Hessengeld only applies to the purchase of the first self-used property in Hesse, while inheritances, donations and new buildings on properties already owned by the family are not supported. People who have already purchased a property are excluded from funding.

The state government plans to use the Hessengeld to support around 23,000 acquisitions every year. Applications for the Hessengeld must be submitted digitally and require identity cards, property transfer tax notices, notarized purchase contracts and other documents. Applications are processed by the Hessen Economic and Infrastructure Bank. It is expected that the first applications will be submitted and processed in the fall.