Child Benefit Cancellation

Child benefits in Germany, also known as Kindergeld, is a subsidy that parents can claim from the German state. This child benefit payment is meant to help parents financially, and it primarily benefits families with small and medium incomes. As part of the annual income tax assessment, the tax office checks whether the child benefit paid out or the child tax reduction is more favorable for the parents. This check is carried out automatically and does not have to be applied when filing taxes. Once the child reaches the age of 18 or completes their first job training, the payment ends.

Germans abroad are entitled to child benefits if they continue to be subject to unlimited tax liability in Germany or are treated accordingly, and the children are resident in Germany. Within the EU, the children may also have a residence outside Germany. But even those who live abroad and are not subject to unlimited tax liability in Germany can receive child benefits as a social benefit under the Federal Child Benefit Act.

Anyone employed or self-employed is subject to the laws of the EU member state in which they work. However, a posted team member is still subject to the regulations of the sending country. Otherwise, the country’s rules in which the person or the family lives apply.

It may well be that a child is entitled to family benefits in more than one country. In this case, the state in which the child resides is always responsible. The responsible state pays the child benefit in full. If the child benefit in the accountable state is lower than in Germany, the German child benefit fund usually pays the difference if there is a claim. If the child benefit in the responsible country is higher, the German fund does not have to pay.

In principle, the Entitlement to (German) child benefits expires upon emigration from Germany. Before leaving the country, the beneficiary must take the initiative and deregister with the appropriate family benefits office. Deregistration at the registration office is not sufficient.

Anyone who lives in a non-European country and knowingly continues to receive child benefits commits a criminal offense of tax evasion. Suppose this comes to the attention of the family benefits office at some point (for example, by comparing data with the registration office). In that case, the family benefits office’s penalty and fine office can initiate criminal tax proceedings. If in doubt, please seek legal advice.