What impact does my child's stay abroad have on the child allowance?
Child Allowance During a Stay Abroad
The child allowance and the BEA allowance (for care, education, and training) are also available to parents if their child lives abroad – provided the parents are fully liable to income tax in Germany.
Reduction of Allowances for Permanent Stay Abroad
The child's place of residence affects the amount of the allowances. Depending on the country of residence, they can be reduced by a quarter, half, or three quarters. The basis is the country group classification of the Federal Ministry of Finance, which is based on living costs. It affects:
- Child allowance
- BEA allowance
- Training allowance
- Childcare costs
No reduction
Child Benefit During a Stay Abroad
For children residing in an EU or EEA country, the entitlement to child benefit continues, provided no comparable family benefits are received abroad.
Outside the EU and EEA, child benefit is only possible if the child still has a domestic residence or their usual place of residence in Germany.
Conditions for a Continuing Residence in Germany
A child who lives longer than a year outside the EU or EEA is considered resident in Germany according to the BFH only if:
- appropriate living space is permanently available with the parents,
- they can use it at any time,
- and they use the accommodation regularly during non-term times (holidays).
(BFH ruling of 28.04.2022, III R 12/20)
Practical Advice for Longer Stays Abroad
- Short visits are not sufficient to maintain residence.
- Financial reasons do not excuse missing home visits.
- Parents should keep travel receipts and study documents.
Special Features for Studying Abroad
- For a one-year study abroad, the child benefit entitlement remains – even without a home visit.
- If the stay is extended, stricter requirements apply from that point (majority of time in Germany during holidays).
- Exam preparations abroad do not count as holiday time.
BFH rulings of 21.06.2023 (III R 11/21) and 20.02.2025 (III R 32/23)
Special Regulations for Social Security Agreements
In countries with a social security agreement (e.g. Turkey), special child benefit regulations apply. Please seek individual advice.
