Overview
- Federal cabinet approved a bill to pay Kindergeld automatically in many straightforward cases, replacing applications for a large share of families.
- Law is slated to take effect on January 1, 2027, with a two-step rollout: automatic payments for additional children from March 2027 and expansion to first-time recipients from November 2027.
- Eligibility for automatic payment requires that one parent lives with the child in Germany, one parent is employed or taxable in Germany, and a valid IBAN is on file.
- The finance ministry estimates automation could eliminate roughly 300,000 first-time applications each year, using data sharing between registry offices, tax authorities and the Familienkasse.
- Complex or cross-border cases will still use the classic application, with a welcome letter and QR-linked prefilled form available; the measure now heads to parliament and requires IT setup.