Home financing with interest loan and Riester or without Riester

I don't want to get ahead of myself, so everyone is warmly invited to correct me. But my understanding: Grant in year 1: €1000 30 years until retirement, annually compounded at 2% in the grant account amounts to €1800 after 30 years. Tax rate in year 1, because full-time: maybe 30%? = 1000*0.3 = €300 tax Tax rate in 30 years, because retiree, maybe 20%? = 1800*0.2 = €360 tax Accordingly, it can happen that despite the lower taxation in old age, possibly EVEN MORE tax has to be paid than before. Well, as you say, in the end there remains of course a positive contribution through the grant. But it is by far not as high as is suggested, which then in combination with the much more expensive conditions and the closing costs leads to a real loss.

Hello, I thought that no taxes are paid on the grants during the 30 years (which would currently be €650 per year) and that it is only taxed later in retirement at the respective tax rate. Is it true that you only have to pay back taxes for 18 years?

It is true that you do not pay taxes on the allowances until retirement. However, the allowances are fictitiously collected in an account and earn 2% interest each year! The account balance you have at retirement must then be taxed. See the following quote from finanztip:

"The housing promotion account is a fictitious account on which all annually subsidized repayments and allowances are recorded, up to a maximum of 2,100 euros per year. These benefits are calculated with an interest rate of two percent per year until your retirement. This is a compensation for the fact that you already use the subsidized property yourself and benefit from its appreciation. Upon retirement, you must then pay taxes on the accumulated balance. You have two options:

[*]You pay your tax liability in full at retirement and receive a 30 percent discount.
[*]You pay taxes on a portion of the housing promotion account each year until you reach 85 years of age. If you retire at 67, you must therefore pay taxes on one eighteenth of the housing promotion account annually."

Hello, the table also shows a tax advantage of 21,900€, where does that come from and how can it be calculated?

For such constructs, I 100% recommend a savvy fee-based consultant who will break it down for you in detail, calculate it, and present it. As long as he works exclusively on a fee basis, you can be relatively sure that he works only for you and not for the commission.

But where exactly is the "Riester hook"? You basically can't be taxed more than you have paid in, and a positive result always remains.

That depends on how much your provider "pockets." See my first post. The ZfA credited 24k€ to my housing promotion account, which accrue interest at 2%, and I have to pay taxes on them starting at retirement. I received 14k€. The difference? 10k€!!! It seems my provider pocketed that. It's very recent, so I haven't been able to clarify it yet. I certainly haven't received that amount in subsidies in total. At the moment, I suspect the whole Riester business will ultimately be a subsidy operation—and a hefty one at that. I would have gotten more if I had simply put the contributions into an account and left it at that. And I wouldn't be bound to my property for better or worse.

we also wiped out my Riester because I no longer receive any subsidies for the children, I earn too much.

it all was too stupid for me and the structure too expensive

I also found it cheeky that my wife, who has the children and receives the allowance, the provider also takes a commission on the child allowance! he didn’t father the kids, at least I didn’t know about it^^ But more is paid into the contract so he naturally participates in it