Child benefit for EU citizens entitled to freedom of movement: Derived entitlement possible despite lack of employment (FG Düsseldorf 9 K 1192/23)

Oct 30, 2025

In its ruling of January 15, 2025, the Münster Finance Court dismissed the claim of a mother of three minor children, all of Romanian nationality, living in Germany for further payment of child benefit. The appeal was allowed on grounds of fundamental importance because there is no supreme court ruling by the Federal Finance Court (BFH) on certain constellations with regard to the receipt of social welfare benefits and the consequences for child benefit entitlement.

The mother traveled to Germany with her husband, who, unlike the other family members, has Turkish citizenship. The mother applied for child benefit payments. She herself was never registered as employed or seeking work in Germany for social security purposes. She herself only took up marginal employment after several years.

The husband initially pursued gainful employment. The family lived on this income and the child benefit that the plaintiff received for the three children from the fourth month of their stay in Germany. The husband later terminated this employment, although it was not proven that he lost this job through no fault of his own. This was followed by unemployment benefit I and later social security benefits. After a long period of time, the husband then earned income from self-employment. The family also received supplementary social assistance benefits.

For legal reasons, the husband's employment history was not taken into account, as the child's mother was the applicant for child benefit. Child benefit payments were discontinued because the family would not be able to support themselves in the long term without social security benefits. The child's mother was of the opinion that the discontinuation of child benefit payments violated her rights of freedom of movement as an EU citizen and was unconstitutional.

As the husband and father of the children was not an EU citizen, his employment history was irrelevant and was only significant insofar as he temporarily or partially secured the family's livelihood together with the child benefit received.

Under German law, the children's mother should not have been allowed to stay in Germany with the children for as long as she did. According to the FG's ruling, the children's mother was no longer entitled to child benefit for the period after the end of her legal residence. It is also not contrary to EU law to make the receipt of child benefit dependent on legal residence in Germany. The right of residence was lost because of and after the receipt of social benefits.

If an appeal is lodged, the Federal Fiscal Court will have to decide whether the decision of the Fiscal Court
is constitutional and whether it violates EU law. At the time of going to press, it was not yet known whether an appeal had been lodged.

Source: Münster Finance Court, judgment of 15 January 2025, ref. no. 13 K 26/23 AO