Funding Programmes for Buying and Renovating in Bavaria

Information as of autumn 2026. Conditions, income limits and funding rates change regularly. Before applying, check the current conditions with the relevant funding bank.

Funding for Acquiring Your Own Home

KfW – Home ownership for families (Wohneigentum für Familien): Low-interest loans for families with children for building or first acquisition of a climate-friendly new build. Income limits apply, which rise with the number of children.

KfW – "Jung kauft Alt" ("Young buys old"): Low-interest loans for families with children who buy an existing property in need of renovation (poor energy efficiency class) and carry out an energy-efficient renovation within a set period. With its large stock of older houses, this is particularly interesting for Oberfranken.

BayernLabo – Bavarian interest subsidy programme and housing funding: The Free State of Bavaria supports the construction and purchase of owner-occupied homes with low-interest loans, depending on income and household size. Applications are submitted to the approval authorities (district offices, independent towns).

Funding for Energy-Efficient Renovation

BAFA – Individual measures on the building envelope: Grants for insulation, windows and doors, summer heat protection and for building services (e.g. ventilation). With an individual renovation roadmap (individueller Sanierungsfahrplan, iSFP), the funding rate increases by a bonus and the eligible costs rise.

KfW – Heating subsidy: Grants for installing climate-friendly heating systems (heat pump, biomass, connection to a heating network) with basic funding and bonuses, for example for lower-income households and for the early replacement of old fossil-fuel heating systems.

KfW – Renovation to Efficiency House standard: Loans with a repayment grant for complete renovation to an Efficiency House (Effizienzhaus) standard.

Energy consultation: The preparation of a renovation roadmap by an approved energy consultant is also subsidised.

Tax Incentives

As an alternative to grant funding, owner-occupiers can deduct 20% of the costs of energy-saving measures from their tax liability over three years (§ 35c EStG), up to a maximum of €40,000 per property. Double funding of the same measure is not permitted.

For investors, the depreciation rules apply, see Depreciation (AfA) on property.

Urban Development Funding and Listed Buildings

In formally designated redevelopment areas (Sanierungsgebiete) – in Oberfranken, for example, in many town centres – there are municipal funding programmes for façades and modernisation as well as increased depreciation. For listed buildings (Baudenkmäler), grants from the Bavarian State Office for the Preservation of Monuments, the districts and the municipalities are also available. Ask at your municipality's building authority.

The Most Important Rule: Apply First, Then Commission

For almost all programmes, the application must be submitted before you sign a supply or service contract. Planning services and energy consultation are usually exempt. Anyone who commissions work too early loses the funding.

The Programmes at a Glance

Programme numbers, interest rates and income limits change – sometimes several times a year. The federal funding database (Förderdatenbank) lists all current programmes.

How High Is the Heating Subsidy?

According to the most recently applicable version, the KfW grant for a new heating system is made up of components:

Costs are funded up to a ceiling – €30,000 for the first residential unit. For a heat pump costing €35,000 and 50% funding, you therefore receive a grant of up to €15,000. The political debate about future funding is ongoing; check the current status directly with KfW.

Worked Example: A Family Buys a House from the 1970s

A family with two children buys a detached house in Naila, energy efficiency class G, for €165,000. Planned: insulate the roof, replace the windows, install a heat pump.

Without funding, the family would have had to finance the entire amount at market interest rates. The interest savings and grants together can amount to a five-figure sum over the term. Important: for "Jung kauft Alt", the renovation must reach a certain efficiency level within a set period. An energy consultant plans this in advance. More about checking such houses under Buying an older building.

Tax Bonus Instead of a Grant

Owner-occupiers who do not apply for a grant can have energy-saving measures subsidised through income tax (§ 35c EStG):

The tax bonus does not require an application before the start of the work, but it does require a certificate from the specialist contractor carrying out the work. It is worthwhile if grant funding does not apply or the application was missed.

Step by Step to Funding

1. Commission an energy consultant – they inspect the building and prepare the renovation roadmap.
2. Select programmes – loan, grant or tax bonus, depending on the measure.
3. Obtain quotes – conclude contracts with a condition precedent if the programme allows it.
4. Submit the application – for KfW via your main bank or the customer portal, for BAFA online, for BayernLabo via the approval authority.
5. Wait for approval, then commission the work.
6. Carry out the measures and collect evidence (invoices, confirmation from the energy consultant).
7. Submit proof of use – only then is the grant paid out.

Municipal Programmes in Oberfranken

In addition to the federal and state governments, many municipalities have their own programmes, particularly to combat vacancy in village and town centres: grants for buying and renovating empty houses, municipal façade programmes or affordable building plots for families. What is available differs from place to place. Ask at the town hall – or ask us, as we know many of these programmes from practice. Information on individual towns can be found on our location pages.

Typical Mistakes in Funding Applications

Funding rarely fails because of money, but because of formalities. The most common pitfalls:

1. Contract before application: Anyone who signs the contract with tradespeople without a condition precedent before the application has been submitted loses the funding.
2. Wrong programme: Heating at KfW, building envelope at BAFA – anyone who mixes them up has to apply again.
3. Minimum technical requirements not met: Windows, insulation and heating systems must achieve certain values. The energy consultant or specialist contractor confirms this.
4. Deadlines missed: Measures must be carried out and documented within a certain period.
5. Double funding: The same measure cannot be funded by a grant and a tax bonus at the same time.
6. Incomplete receipts: Invoices must show labour costs and materials separately and must be paid by non-cash means.

An energy consultant who accompanies the application and the proof of use costs money, but often saves considerably more – and nerves.

Funding When Buying a Listed Building or in a Redevelopment Area

For listed buildings and buildings in formally designated redevelopment areas, there is a separate funding landscape: grants from the Bavarian State Office for the Preservation of Monuments and the district, municipal façade programmes, urban development funding and increased tax depreciation. Many town centres in Oberfranken – for example Bamberg, Kronach, Kulmbach or Forchheim – have designated redevelopment areas. The requirement is almost always that the measures are agreed with the authority before they begin. More under Buying an older building and Depreciation (AfA) on property.

Using Funding in Sales Negotiations

Sellers also benefit from knowledge of funding programmes. Anyone who can show a buyer which grants are possible for the upcoming renovation takes away their fear of high costs – and prevents excessive price reductions. For older houses, we will include an overview of possible funding with the property brochure (Exposé) on request. → Preparing a property for sale