Germany confronts the impact of immigration in yet another sector

The Federal Employment Agency's family benefits fund disbursed approximately €528 million in child support to foreign accounts last year—marking the highest amount ever recorded in the history of Germany.

English POLITIKA 2026. JANUÁR 27. 06:58

The figures are based on data from the Federal Employment Agency, requested by René Springer, a member of the federal parliament from the Alternative for Germany (AfD) party. The data clearly indicate that Germany is facing significant challenges as it becomes an attractive destination for many immigrants, primarily due to its generous social benefits.

In 2025, payments for child benefits reached a new record high. According to the Federal Employment Agency, a total of €55.3 billion was disbursed for approximately 17.6 million children in Germany. Of this amount, €12.7 billion went to eligible recipients of foreign child benefits, while €42.6 billion was allocated to parents with German citizenship.

Meanwhile, the proportion of recipients of foreign parental support has significantly increased in recent years. In 2021, the percentage of beneficiaries was 18.1%, but by 2025, this figure had risen to 20.3%.

Tax Residency Matters

The EU’s rules on free movement and German tax law link eligibility for child benefits not to domestic residency but to tax status and employment. It is common for individuals to work in Germany while their families live abroad.

Those who pay taxes and social security contributions in Germany are entitled to child benefits, even if their children reside in another EU country or in a state with which Germany has a social security agreement. Currently, there are 21 such states, including Albania, Australia, Bosnia and Herzegovina, Brazil, Chile, India, Israel, Japan, Canada, Kosovo, Morocco, Moldova, Montenegro, North Macedonia, the Philippines, Serbia, South Korea, Tunisia, Turkey, Uruguay, and the USA. EU regulations prohibit „discriminatory differences in amounts” based on the child’s place of residence. Therefore, the family benefits office must pay the standard child benefit instead of adjusting it to the cost of living in the country of residence.

According to the Federal Employment Agency, the family benefits office will automatically determine the amount of child benefits from mid-year onwards. This marks the first step towards a system of child benefits that does not require applications.

René Springer, a politician from the Alternative for Germany (AfD), commented: „We must stop the transfer of the full amount of child benefits to foreign accounts. Payments sent abroad should finally be adjusted to local living costs. This would relieve taxpayers by hundreds of millions of euros each year. However, in addition to payments sent abroad, the entire child benefit system must be fundamentally reviewed. Similar to Denmark, eligibility for foreigners should be tied to clear conditions: a valid residence permit and several years of employment. Only in this way can we halt immigration driven by attractive social benefits into our welfare system.”

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