Tax consequences of giving up the owner-occupation of your subsidized apartment
Source: BUS Rheinland-PfalzYour home subsidy account is used to record the retirement provision home amount, the repayments and the allowances granted for this.
The home subsidy account is managed by the Central Allowance Office for Pension Assets (ZfA).
If you no longer use your tax-subsidized property yourself or give up ownership of it, your housing subsidy account will generally be closed.
You must pay tax on the resulting liquidation amount.
However, your housing subsidy account will not be closed immediately if, for example
- resume owner-occupation of your property within 5 years,
- make an equivalent reinvestment in another property within a certain period after giving up owner-occupation, or
- you are no longer able to use the subsidized residential property yourself due to illness or care, but you remain the owner.