Heating grant for landlords in Germany 2026
Landlords get less than owner-occupiers when they replace a heating system. This page shows how much, how the number of flats drives the amount and why CO₂ costs still argue for switching.
Worked through by Radif Partners · Editorial policy · How we calculate
Grant for a let building
Grant
€18,000
| Cap for the building | €73,000 |
| Basic grant | 30 % · €18,000 |
| Bonus, your own flat | €0 |
Bonus assumes a gas boiler of 20+ years and €60,000 income.
If you let a house or flat in Germany, the KfW programme 458 pays only the basic grant of 30 % of eligible costs when you replace the heating. The climate speed bonus (Klimageschwindigkeitsbonus) and the income bonus are tied to the home the owner lives in, so they do not apply to any let unit. The number of flats sets how much can be funded: €28,000 for the first, €15,000 each for the second to sixth and €8,000 each from the seventh. A six-flat rental building that swaps a 25-year-old gas boiler for a €95,000 heat pump receives €28,500, leaving €66,500 with the owner. If the landlord lives in one of the flats, the bonuses are added for that single unit. From the first quarter of 2027 the basic grant for heat pumps not made in the EU is set to fall to 15 %; the start date has not been fixed. For the same building that would mean €14,250.
What landlords get and what they do not
Private individuals registered as owners of an existing residential building or a flat may apply, even if they live elsewhere, including outside Germany (information sheet 458). The planning application must be at least 5 years old. The grant is made up of the basic rate and, for owner-occupiers only, bonuses. For a let unit that leaves a flat 30 %, however old the previous system and whatever the owner earns (KfW product page).
That sounds modest, but it is predictable. An owner-occupier loses part of the climate bonus every six months from 1 February 2027. A landlord never had it, so the calendar matters less. What counts is the number of flats, the cost and which system goes in.
| Building | Cost | Eligible | Grant | Own share |
|---|---|---|---|---|
| House, let | €26,000 | €26,000 | €7,800 | €18,200 |
| Three flats, all let | €60,000 | €58,000 | €17,400 | €42,600 |
| Three flats, owner lives in one | €60,000 | €58,000 | €22,427 | €37,573 |
| Six flats, all let | €95,000 | €95,000 | €28,500 | €66,500 |
| Twelve flats, all let | €180,000 | €151,000 | €45,300 | €134,700 |
How the number of flats sets the amount
The cap applies to the whole building and grows with each flat: €28,000 for the first, €15,000 for each of the second to sixth, €8,000 for every further one (guideline no. 8.3.1). Six flats reach €103,000, twelve reach €151,000. In the twelve-flat example the cost exceeds the cap, which is why the owner’s share there rises faster than the invoice.
The six-monthly reduction only touches the first flat’s amount. For the six-flat building the cap falls from €103,000 to €102,250 on 1 February 2027. Because the €95,000 cost is below it, the grant stays at €28,500. The cap applies once per building across all applications, so funding a heat pump now and solar thermal later draws on the same amount.
If you live in the building yourself
If the owner lives in one of the flats as their registered main residence, that unit gets the climate speed bonus and, depending on income, the income bonus. KfW assumes an equal share of the building per flat, so a third of eligible costs in a three-flat house. Only one flat can count as owner-occupied. With €45,000 household income the three-flat example rises from €17,400 to €22,427, and the rate for the owner’s flat is 56 %. Income here means German tax assessments (Steuerbescheide) for the second and third year before applying, and income earned abroad counts. The calculator above shows your building; the rates are set out under KfW 458.
2027: heat pump or pellets in a rental building
For landlords another change weighs more than the shrinking bonus. The guideline cuts the basic grant for heat pumps to 15 % from the first quarter of 2027 and adds a 15 % value-added bonus if the unit originates in the EU. The start date and how origin is proven are not yet published. For the six-flat building, an application in April 2027 would bring €28,500 with an EU unit and €14,250 without. A pellet boiler would keep 30 % and reach €28,500 (pellet boiler grant).
Also from the first quarter of 2027, replacing a renewable system running since 1 January 2008 or later will no longer be funded. If you buy a building with a recent heat pump and want to change it, factor that in.
CO₂ costs: the part the landlord pays
The CO₂ Cost Allocation Act splits heating CO₂ costs between tenant and landlord (CO2KostAufG). The more CO₂ a flat produces per square metre, the larger the landlord’s share, up to 95 %. A 70 m² flat using 12,000 kWh of gas a year comes to 31.1 kg per m². At €65 per tonne the landlord bears 40 %, or €67 a year, for every flat heated this way. The CO₂ cost split calculator gives the exact figure.
The Building Modernisation Act (GModG) allows gas and oil boilers again, but changes the sums for landlords. If such a system is newly installed under section 43 (section 43 GModG), landlord and tenant split the CO₂ costs and the gas network charges equally from 1 January 2028, and from 2029 also the extra cost of biogas or bio-oil up to a fuel share of 30 %. In the example flat the landlord’s part would rise from €67 to €84 a year at the same CO₂ price.
Keep the oil boiler or switch
Grant if you switch now
€12,880
| CO₂ a year at €65/t | €455 |
| Oil a year (12-month average) | €2,611 |
Running it is allowed: the 30-year replacement duty ended on 29 July 2026.
Rent, tax, loan
After modernisation a landlord may raise the rent, but not on money the state paid. Section 559a of the Civil Code removes publicly funded costs from the calculation, and section 559e calculates the increase for subsidised heating from the costs minus the grant, with a cap per square metre of floor area. If the grant is refused although the conditions are met, the general rule of section 559 applies instead. Since 29 July 2026 section 559f has been added: after a heat pump is installed, the full increase is only allowed if an installer proves a seasonal performance factor of at least 2.5, except for instance in buildings erected after 1996 or heated with a flow temperature of no more than 55 degrees. The detail is tenancy law and belongs with a lawyer.
The section 35c income tax credit does not help landlords: it covers only homes the owner lives in. A loan can cover the rest. The top-up loan goes up to €120,000 per flat, but the interest subsidy applies only to the owner’s own flat and up to €90,000 income.
Steps for a let building
Before applying, sign a contract with the installer that only takes effect if the grant is approved. The installer or an energy efficiency expert then issues the confirmation for the application, and the owner applies in the KfW portal. After approval there are 36 months to install and 6 months to submit proof; the system must run for 10 years. Tell your tenants about the works in good time. The full sequence is under how to apply. If you own a single flat in an owners’ association, different rules apply (grant for owners’ associations).