FREITAG
— Property Annuity (Immobilienverrentung) · Consulting nationwide

Live rent-free.
Release capital.

Property annuity Munich — Sell your property and continue living in it, with usufruct, right of residence or life annuity

Between €800 and €4,000 monthly immediate pension — and you continue living in your home. Four legally secured models, curated by FREITAG® Immobilien for owners in Bavaria, Baden-Württemberg and surrounding areas.

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— Manifesto

A lifetime in your own home —
and financially free at the same time.
We design your property annuity as what it is: a personal life model.

Gerhard Hahn — Managing Director FREITAG® Immobilien GmbH
Property Annuity · Your Contact Person

Gerhard Hahn — Your contact person for Munich, Starnberg & Bavaria

Managing Director of FREITAG® Beteiligungsgesellschaft mbH

Over 30 years of experience as a real estate specialist

Property annuity is a matter of trust — and always life planning. Gerhard Hahn has personally advised owners in Munich, Starnberg and throughout Bavaria for over three decades: from sober valuation to the choice of the suitable model (usufruct [Nießbrauch], right of residence [Wohnrecht], life annuity [Leibrente] or leaseback [Rückanmietung]) to discreet processing with the notary. No call centre, no changing contacts — an experienced specialist who understands what your home means to you.

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— Four Models

Which model
suits you?

Usufruct – KI-generiertes Symbolbild
Modell 01
KI-generiert
Verrentung N°01

Usufruct

The most secure variant of property annuity. You remain the economic owner, live rent-free for life, and are registered in the land register with first priority — a right that no one can take away from you.

  • —Economic owner — rental to third parties possible if required
  • —Rent-free, unchallengeable right of residence for life
  • —Registration with first priority in the land register
  • —Tax-free lump sum payment or monthly pension
  • —Maintenance by the new owner if desired
Ratgeber: Usufruct verstehen →
Right of residence – KI-generiertes Symbolbild
Modell 02
KI-generiert
Verrentung N°02

Right of residence

The right of residence (Wohnrecht) secures your right of use for life. Subsequent rental is not the primary focus — in return, you benefit from a higher pension. A possible severance payment upon moving out is already regulated in the purchase agreement.

  • —Immediate, generally tax-free payment of the purchase price
  • —Registration of the right of residence (Wohnrecht) with first priority in the land register
  • —Rent-free right of residence for life — contractually secured
  • —Pre-defined severance payment upon relinquishing the right of residence
Ratgeber: Right of residence verstehen →
Leaseback – KI-generiertes Symbolbild
Modell 03
KI-generiert
Verrentung N°03

Leaseback

Maximum sales proceeds — combined with a long-term rental agreement. Ideal for sellers who only wish to remain in the property for a limited time and want to benefit from the full market value today.

  • —Guaranteed lifelong right of residence as a tenant
  • —Purchase price at market value — mostly tax-free
  • —Rental conditions fixed for the entire term, no increases
  • —Termination for owner's personal use (Eigenbedarfskündigung) contractually excluded
Ratgeber: Leaseback verstehen →
Life annuity – KI-generiertes Symbolbild
Modell 04
KI-generiert
Verrentung N°04

Life annuity

A constant, lifelong monthly pension payment — secured in the land register. In the event of default on the life annuity (Leibrente), you regain your ownership through a notarised right of rescission (Rücktrittsrecht).

  • —Lifelong monthly pension, anchored in the land register
  • —Lifelong, gratuitous right of residence (Wohnrecht) secured in the land register
  • —Adjustment of the pension to the cost of living index
  • —In case of early move-out: increase in pension or lump sum payment
  • —Notarised right of rescission (Rücktrittsrecht) in case of payment default
Ratgeber: Life annuity verstehen →
— Example Calculation

This is what a
property annuity looks like.

A concrete example calculation for property annuity — transparent, comprehensible and individually tailored to you. We will prepare your personal calculation in a non-binding initial consultation.

Example Calculation Property Annuity – KI-generiertes SymbolbildKI-generiert
— Munich & Surrounding Area

Property Annuity Munich

No other German city has as much capital tied up in owner-occupied property as Munich. Anyone opting for a property annuity here releases values that are hard to reach elsewhere: asking prices for condominiums are around 10,450 €/sqm, houses around 9,850 €/sqm, and the comparable rent around 21.80 €/sqm (as of 2024).

The rent level is not a secondary value, but the central adjusting screw: from it, the capital value of your usufruct or right of residence is calculated, which is then deducted from the market value. This is precisely why Munich annuity offers differ significantly from offers in structurally weaker regions — and why comparing several investors is worthwhile.

We advise owners across the entire city, from Bogenhausen, Schwabing and Harlaching through Solln, Sendling and Nymphenburg to Pasing and Trudering, as well as in the surrounding area around Starnberg, Gauting, Grasbrunn and Germering. Market figures and trends can be found in our Market Overview for Munich.

Calculation Example Munich

Condominium, 850,000 € market value, usufruct

Owner
75 years, lifelong usufruct
Annual rental value (4 %)
34,000 € / year
Capital value of usufruct (§14 BewG)
approx. 383,000 €
Lump sum payment to you
approx. 466,000 €

Non-binding example according to the methodology of this page (multiplier §14 BewG, mortality table 2020/22 DESTATIS). Market figures Munich: Real estate agents Munich Starnberg, as of 2024. The actual offer depends on location, condition, rental value appraisal and investor.

Calculate your own property annuity
In-depth information
Usufruct Munich

Capital value, right of tenancy, maintenance, and detailed calculation example.

In-depth information
Life Annuity Munich

Annuity amount, taxation of the income share, and security in the land register.

— Understanding Property Annuity

Sell your property and continue to live in it.

A property annuity is the most discreet way of using your own home for retirement provision: you sell your house or apartment and continue to live in it rent-free for life. Through Usufruct, Right of Residence, Leaseback orLife Annuity you secure a right of residence anchored in the land register — and at the same time release the capital tied up in your property.

The classic case: owners from around the age of 65 want to sell their property and continue to live in it — whether to fund care services, pass on assets to heirs early, travel, or simply top up their pension noticeably. With the usufruct model you even remain the economic owner and can let the property if needed.

FREITAG® Immobilien independently guides you through all four models of property annuity, reviews purchase price offers, negotiates terms, and collaborates with selected investors and foundations — in Munich, throughout Bavaria, and nationwide.

Frequently Asked Questions about Property Annuity & Usufruct

What is a property annuity?

With a property annuity, you sell your property and continue to live in it — for life and generally rent-free. You receive the purchase price as a lump sum, a monthly life annuity, or a combination, and have your right of residence or a usufruct registered in the land register.

What does usufruct mean when selling property?

Usufruct [Nießbrauch] is the strongest right in property annuity models: you remain the economic owner, are permitted to occupy the property yourself or rent it out, and are secured in the first rank of the land register. The new owner can only freely use the property after your demise or voluntary relinquishment.

Can I sell my property and continue to live in it?

Yes. Through usufruct [Nießbrauch], right of abode [Wohnrecht], leaseback [Rückanmietung], or life annuity [Leibrente], you sell your property and retain a lifelong right of abode, secured in the land register. Termination due to the buyer's own need [Eigenbedarfskündigung] is excluded.

What property annuity models are available?

Four legally secured models: usufruct [Nießbrauch], right of abode [Wohnrecht], leaseback [Rückanmietung], and life annuity [Leibrente]. Depending on your life situation, age, and financial needs, a different model may be recommended — we offer free and non-binding advice.

For whom is property annuity [Verrentung] worthwhile?

Primarily for owners aged approximately 65 and over who wish to remain in their home, while simultaneously wanting to free up capital for retirement, care, gifting, or quality of life — and for owners without direct heirs or those desiring predictable retirement planning.

Is the payout from property annuity tax-free?

In most cases, yes: After 10 years of owner-occupation or self-occupied property, the sales proceeds of one's own property are income tax-free. Life annuities [Leibrenten] are only taxed on their yield portion [Ertragsanteil]. We recommend tax advice before any agreement is concluded.

What is special about property annuity in Munich?

Munich is one of Germany's most expensive real estate markets: For condominiums, the asking price is around 10,450 €/m², and for houses, approximately 9,850 €/m² (as of 2024, source: Immobilienmakler München Starnberg). The capital that can be released through an annuity is correspondingly high — at the same time, the comparable rent of around 21.80 €/m² is crucial for the capital value of the right of abode [Wohnrecht] or usufruct [Nießbrauch], which is deducted from the purchase price.

How much money do I get for a property annuity in Munich?

The payout amount results from the market value [Verkehrswert] minus the capital value [Kapitalwert] of your right of abode. Example: A Munich condominium with a market value of 850,000 €, usufruct for a 75-year-old owner, and an annual rental value of 4% yields an estimated lump sum payment of approximately 466,000 €. The calculator on this page reflects the system according to §14 BewG; the binding offer depends on location, condition, and investor.

In which Munich districts and surrounding areas do you provide advice?

We support property annuities throughout the city — including Bogenhausen, Schwabing, Grünwald-adjacent areas in Harlaching, Solln, Sendling, Pasing, Nymphenburg, and Trudering — as well as in the surrounding area from Starnberg via Grasbrunn and Gauting to Germering. Viewings and consultations can take place at your home upon request.

— Personal Consultation

Your home.
Your annuity.

Over 15 years of real estate agent experience in Munich, Bavaria and the Allgäu. We offer free and non-binding advice — at your home if desired.

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Real Estate Agent Munich
Your contact person

Specialised in property annuity (Immobilienverrentung)

Property annuity (Verrentung) is a matter of trust — and one of the most demanding disciplines in the real estate market. We discreetly guide owners in Bavaria and the surrounding area through every step: from realistic valuation to the individual structuring of usufruct (Nießbrauch), right of residence (Wohnrecht) or life annuity (Leibrente) up to secure notarised processing.

Clear processes, comprehensible advice and suitable buyers from our network — for a solution that is economically viable and feels right for you personally.

Michael Freitag
Founder of FREITAG® Immobilien GmbH
Over 15 years of experience in Bavaria & surrounding areas
Personal consultation
Insight

Our headquarters in Munich

Personal, discreet, with over 15 years of market knowledge – your real estate agent for Munich.

You don't have to come to us: For a personal consultation or a property valuation, your agent will, of course, travel to you in Munich – discreetly, without obligation and at a time that suits you.

Arrange a free consultation in Munich
— Annuity Calculator

How much does your property annuity?

Calculate your estimated lump sum payment or monthly life annuity with usufruct (Nießbrauch), right of residence (Wohnrecht) or life annuity (Leibrente) in 30 seconds — based on the current BMF multiplier according to §14 BewG.

Eingaben
Ergebnis
Multiplier (§14 BewG)12.505
Capital Value Right of Residence / Usufruct375.144 €
Remaining Life Expectancy (statistical)14.9 Jahre
Lump Sum Payment to You374.856 €
Rent-free Living Benefit for Life2.500 € / Monat
Non-binding estimate. Multiplier according to §14 BewG / current BMF table; life expectancy according to mortality table 2020/22 (DESTATIS). Actual offer depends on location, condition, rental value appraisal and investor. We will provide you with a verified calculation free of charge.
Request a free, verified calculation
Source: Property Annuity Munich – FREITAG Real Estate Agents
— Partner Profile

FREITAG® Immobilien on Sellwerk

Our verified company profile for property annuities in Munich — with service spectrum, reviews and contact details on Germany's real estate platform Sellwerk.

To the Partner Profile