Child benefit for EU citizens entitled to freedom of movement: Derived entitlement possible despite lack of employment (Düsseldorf Tax Court)

Oct 30, 2025

The Münster Tax Court, in its judgment of January 15, 2025, dismissed the claim of a mother of three minor children, all Romanian nationals, residing in Germany, for continued child benefit payments. An appeal on points of law was granted due to the case's fundamental importance, as there is no established case law from the Federal Fiscal Court (BFH) regarding specific situations concerning the receipt of social assistance benefits and their consequences for child benefit entitlement.

The mother entered Germany with her husband, who, unlike the other family members, holds Turkish nationality. The mother applied for child benefit payments. She herself was never employed in Germany and subject to social security contributions, nor was she registered as a job seeker. She only began working part-time after several years.

The husband initially pursued employment. The family lived on his income, along with the child benefit that the plaintiff received for her three children starting in the fourth month of their stay in Germany. The husband later ended this employment, although it was not proven that he lost it through no fault of his own. He subsequently received unemployment benefits (ALG I), and later social assistance. After a considerable period, the husband then earned income from self-employment. The family also received supplementary social assistance.

For legal reasons, the husband's employment history was irrelevant, as the children's mother was the applicant for child benefit. Child benefit payments were discontinued because the family could not secure their livelihood in the long term without social assistance. The children's mother argued that the discontinuation of child benefit payments violated her freedom of movement rights as an EU citizen and was unconstitutional.

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

















, ... Under German law, the mother should not have been allowed to stay in Germany with the children for as long as she did. According to the ruling of the Finance Court (FG), she was no longer entitled to child benefit for the period after her legal residence ended. The court also held that making the receipt of child benefit dependent on legal residence in Germany does not violate EU law. Her right of residence was lost both because of and after she received social benefits.

The Federal Fiscal Court (BFH) will have to decide, should an appeal be filed, whether the Finance Court's decision is constitutional and whether it violates EU law. It was not yet known at the time of publication whether an appeal had been filed.

Source: Finance Court Münster, Judgment of January 15, 2025, Case No. 13 K 26/23 AO