Riester for home ownership (Wohn-Riester)

Wohn-Riester is a special form of the Riester subsidy in Germany specifically for homeowners.

How it works:

• You use Riester allowances and tax benefits to pay off your mortgage
• Or you save up equity through a Riester home savings contract
• Allowances: €175 basic allowance + €300 per child (like normal Riester)

Advantages:

✅ Faster loan repayment thanks to allowances
✅ Tax-deductible (up to €2,100/year)
✅ No capital market risk (unlike a Riester fund savings plan)
✅ For families: up to €950/year in free allowances (with 2 children)

Disadvantages:

❌ Deferred taxation: in old age the allowances and tax benefits are taxed (the "home subsidy account"). From the start of retirement you effectively pay back the tax savings bit by bit
❌ Inflexible: if you sell the property before retirement, allowances may have to be repaid