Capital-Forming Benefits (VL) Germany 2026: State Subsidy
Auf Deutsch lesen€40 per month that your employer invests for you — and you pay nothing extra. Those are vermögenswirksame Leistungen (VL, capital-forming benefits). Without a VL contract, you often forgo €480 per year of additional compensation. Plus: the state adds up to €123 as an employee savings subsidy at qualifying incomes. This guide shows you how to use VL optimally.
In short: VL are additional pay amounts (usually €6-€40/month) paid by your employer into a savings contract. Options: building savings, equity fund, bank savings plan, mortgage repayment. Savings subsidy up to €123/year at qualifying incomes. Minimum term 7 years. Your employer pays the base amount; you can top up from net.
The VL principle in one minute
- Your employment/collective agreement includes a VL base amount (typically €6.65 to €40 per month)
- You open a VL contract at a bank, fund provider, or insurance
- Your employer pays directly into this contract (no cash to you)
- You can top up — from gross salary (collective agreements rarely allow this) or net (common)
- The state adds up to €123/year subsidy if your income is under the limits
- After 7 years you can withdraw the saved money
Four VL investment types
1. Bauspar-VL
- A building-savings contract at a Bausparkasse
- After 7 years either cash out or convert to a building loan
- Good for young people with property plans
- Subsidy: 9% on max €470/year = up to €42/year
2. Equity-fund VL
- Fund savings plan with equity or mixed funds
- Higher-return but more volatile
- Popular with younger employees
- Subsidy: 20% on max €400/year = up to €80/year
3. Bank savings plan
- Safe but low yield
- No subsidy
- Only worthwhile if the employer share matters more than yield
4. Mortgage repayment
- VL flow directly into mortgage repayment
- No subsidy on it
- For property owners with active loans
The employee savings subsidy
The state supports VL additionally — but only at lower to middle incomes.
2026 income limits
| Investment | Singles | Married |
|---|---|---|
| Bauspar-VL | €17,900 taxable income | €35,800 |
| Equity-fund VL | €40,000 | €80,000 |
(Values based on current status; adjustments possible.)
Maximum subsidy
- Bauspar: 9% × €470 = €42/year
- Equity fund: 20% × €400 = €80/year
- Family combination of both paths: up to €123/year
These are state extras on top of the employer contribution.
Application
- Application for employee savings subsidy with the tax return
- Anlage VL certificate (from your VL provider)
- Finanzamt automatically checks the income limit
How much does your employer pay?
It’s in your employment or collective agreement:
| Industry | Typical VL contribution |
|---|---|
| Metal / Electrical | €27-€40/month |
| Public service | €6.65/month |
| Chemicals | €40/month |
| Retail | €6.65-€27/month |
| IT | often individual, €20-€40/month |
| Banks | €40/month |
Max €40 per month is state-subsidised. Amounts above are regular pay.
The VL missed-claim trap
Many employees never claim VL, because:
- They never opened the contract
- Nobody informed them of the entitlement
- They don’t know it’s automatically pay
Consequence: at €40/month you forgo €480 per year in gross pay. Over 30 years: up to €14,400 plus subsidy plus yield.
How to claim the employer share
- Check employment contract — is there a VL entitlement?
- Check collective agreement (if applicable)
- Open a VL contract at a bank/fund provider of your choice
- Give the employer the contract details — so transfers start
- Verify on the next payslip
Example: metalworker with equity-fund VL
Martin, metal industry, €40/month employer share, opens equity-fund VL, single, income €35,000 (under limit).
Annual contributions:
- Employer: €480
- His own share: €0 (employer pays all)
- Subsidy (20% on €400): €80
- Total per year: €560
After 7-year term (2033, if he starts in 2026):
- Contributions: 7 × €560 = €3,920
- Average fund return 5%/year: accumulated ~€4,600
That’s an additional portfolio of ~€4,600 that cost him personally nothing.
Who doesn’t get VL?
- Self-employed: no VL. Private saving instead.
- Civil servants: other schemes.
- Mini-job workers: depending on contract, usually no VL entitlement.
- Employees without entitlement clause: some companies pay voluntarily — worth asking.
The 7-year term
- VL contract runs minimum 7 years
- Plus 1 year “rest phase”: after 6 years of paying, 1 year without contributions before you withdraw
Early termination
Only in exceptional cases without subsidy clawback:
- Death
- Disability
- Marriage (under conditions)
- Unemployment over 1 year
- Property repayment (for Bauspar-VL)
Normal termination before term: subsidy reclaimed.
From 2025: higher income limits
Since 2025, the subsidy’s income limits were significantly raised — the old thresholds of €20,000 (Bauspar) and €40,000 (funds) were lifted. More employees now qualify for the subsidy.
Check current values with your VL provider or BMF before filing.
VL in your tax return
- Anlage N: VL contributions are automatically reported by the employer
- Anlage VL from the provider (automatically transmitted to Finanzamt electronically)
- Subsidy is automatically calculated and paid with the tax refund (or into the VL account)
Related topics
- More net via Lohnsteuer-Freibetrag
- Riester pension 2026 — another retirement form
Common mistakes
- VL entitlement not claimed. €480/year forfeited.
- Bank savings plan chosen. No subsidy, weak yield. Equity fund would be better.
- Income limit not checked. At high income the subsidy drops, but VL itself stays useful.
- Early termination. Subsidy reclaimed.
- Forgot Anlage VL. Subsidy isn’t auto-claimed — must be actively declared.
- Only employer share, no top-up. Those who top up (from net) get higher subsidy.
How Restio helps
VL is gross salary often given up. Restio helps claim it:
- VL check — enter your collective/employment agreement + income, Restio tells you: do you qualify, which investment is optimal, which subsidy.
- Provider comparison — Restio shows typical VL providers (Sparkassen-Bausparkasse, fund providers) with cost comparison.
- Anlage VL assistant — Restio reviews your VL certificate and enters it correctly on the return.
- Instant answers — “Can I top up with €25 employer share?”, “Income just over the limit — all lost?”, “VL + job change” — in English or German.
VL are a small but lifelong compensation lever. Those who ignore them give them back to the employer.
Tax tips on your phone
Restio finds deductions you didn't know existed.
Frequently Asked Questions
What are vermögenswirksame Leistungen (VL)? ▼
VL are savings contributions your employer pays directly into a savings contract or fund for you — typically €40/month. They're part of your compensation but not paid in cash. Many collective and employment agreements include VL automatically, but you must have a VL contract for them to flow.
How high is the employee savings subsidy? ▼
Up to €123 per year from the state, depending on the investment type. For Bauspar-VL: 9% on up to €470 annual VL = max €42. For equity-fund VL: 20% on up to €400 = max €80. Combined paths with family: up to €123.
Who gets the savings subsidy? ▼
All employees with a VL contract whose annual taxable income stays under certain limits. For Bauspar-VL: €17,900 (singles) / €35,800 (married). For equity-fund VL: €40,000 / €80,000. Above that, the subsidy drops out, but VL itself remains intact.
What's the lock-in period? ▼
VL contracts have a minimum term of 7 years before you can withdraw the saved money. Early termination: the subsidy is reclaimed. Exceptions: death, disability, marriage, unemployment over 1 year.
Is VL still worth it today? ▼
Yes — especially if the employer contributes. Standard: €40/month from employer + your optional contribution = more money than you personally invest. Plus subsidy. Those who don't claim the employer share forgo €480 per year in gross compensation — no cost to the employer, but you get the money.