KfW 300 funding upon disposal of real estate ownership

The parent-child constellation does not work,

The other way around. Not on your own children, but on the parents. Also there without real estate transfer tax.

We were just wondering if this case had ever happened before and if it is legitimate to do it in this form.

Yes, it happens (unfortunately) regularly (there are people who, through inheritance, have received 5% of a house that still has a right of residence for the parents - property absolutely worthless up to real estate portfolios shifted into GmbHs. Everything is possible) and it is legal and legally perfectly fine. Whether it is legitimate is another question.

I think we won’t be able to avoid a legal review.

Definitely, and also from a tax advisor.

Thank you for your input. The more I think about it, the more uncomfortable I feel about the matter. Your comments have confirmed this once again.

Well, I think there is definitely a difference between actually owning a house that offers enough space for a family or, as in our case, an old building that has been divided and thus is practically only a 3-room apartment for a family of four with two people working from home. That my wife would like to keep the house is purely an emotional matter, as she mostly grew up here.

You are completely right in what you say. Your line of thought is entirely understandable and I also make no judgment about the fact that you express this line of thought here. I simply advise you against it, as I would not find that appropriate. The subsidy is intended for people in other situations.

Thank you for your input. The more I think about it, however, the more uneasy I feel about the matter. Your comments have confirmed this once again.

The effort and costs of moving the existing property back and forth will probably not be worth it. Why don't you inform yourself about regular construction financing.

By the way, it's my tax money that you want to grab :-)