Prerequisites for the employee savings allowance are:
- Capital formation benefits must be in eligible forms of investment. Eligible investments are
- Building savings (e.g. building savings contract, debt repayment for residential property, loan repayment for owner-occupied property)
- Participation savings (e.g. acquisition 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
- Married couple/life partner assessed together
- for building society savings: 35,800 euros
- for participation savings: 40,000 euros
If both spouses/partners are employed as employees, both can claim the savings allowance.
You must have submitted your application for the employee savings allowance no later than the end of the fourth year after the savings year.
Does your taxable income exceed the above-mentioned limits, but is within the income limits for the housing construction premium? 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 premium.