Child benefit outside of Germany: these are your options
You want to know how you can obtain child benefit from outside of Germany? Learn here what conditions need to be met and what applications you need to write. As a lawyer with expertise in tax law and social law I gladly explain and will gladly be your personal contact person.
What conditions need to be met so I can obtain child benefit outside of Germany?
Generally, there are two groups of people entitled to child benefit. When your place of residence or habitual abode is in Germany, you are entitled to receive child benefit from Germany. For “habitual abode” there is no specific definition – the court determines whether it is clear that the centre of your life is in Germany, for example through an employment or due to life circumstances.
If this however doesn’t apply, you can still obtain child benefit outside of Germany, so long as you’re subject to unlimited taxation in Germany. Simply stated that means that your entire income has to be taxed in Germany, for example through an employment in Germany. Upon application people whose income is to more than 90% under German income tax can also be counted to this group.
There are a few edge cases in which you can obtain German child benefit even when you’re not an unlimited taxpayer. Examples for this are employment as a civil servant on assignment abroad or a development aid worker. Another exception applies when you receive German pension payments within the EU but outside of Germany.
As soon as one of these conditions are met, you are entitled to child benefit as long as the respective child has their place of residence or habitual abode in Germany or a country in the EU or EWR (Iceland, Liechtenstein, Norway).
What child benefit entitlement applies if only one parent lives outside of Germany?
There are cases where entitlements to child benefit apply in two countries. In these “cross-border cases”, the rule of precedence applies, see the following example:
The Jones family is made up of two parents and one child. The family lives together in Germany. Mrs. Exemplar is a housewife, while Mr. Exemplar drives to his workplace in Austria daily. This results in a double child benefit entitlement. Precedence is taken by the country in which one works; therefore, the family could get child benefit from Austria. But because the benefit is larger in Germany, Austria is the main payer and Germany supplements the payment on application. However, for the same entitlement the country the child lives in always takes precedence.
But what if only one parent lives outside of Germany, while the child lives in Germany? Here the determining factor is also how the income is taxed. If the income of both parents is regularly taxed completely (or to more than 90%) in Germany, you can receive child benefit. If both parents are employed in other countries within the EU, child benefit is paid by the country the child lives in. If the child benefit in the country the child lives in is less than that of a country one of the parents works in, a “difference benefit” is paid by the country that parent works in.
Obtaining child benefit from outside of Germany: consultation is important
Obtaining child benefit from outside of Germany is a matter where a lot of different factors have to be considered and every constellation brings its own pitfalls. Additionally, the areas of social law and tax law are tightly interwoven. For that reason, I recommend that before applying, you get extensive consultation with an expert.
If you commission me, we will discuss together which regulations in the context of child benefit apply to you, your child and the other parent. This way you can write your application as extensively as possible. Are you already outside of Germany and an in-person appointment isn’t possible? Not a problem. In my office I offer not only classic consultations in person but also online-calls and telephone appointments. Contact me without any obligations and receive a first estimation.
I will gladly advise you!
Book an appointment for a free initial assessment or contact me by phone, e-mail or via my contact form:
Lawyer Christian Janssen from Berlin
FAQ: Child benefit from outside of Germany
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