Usufruct is the strongest right in property annuity (Immobilienverrentung). You transfer ownership, but remain the economic owner: you live in the property rent-free for life or rent it out and keep the rental income. This right is entered in the land register (Grundbuch) in the first rank, before the buyer's entry.
The basis is the local market rent. In Munich, the comparative rent for flats is around 21.80 €/sqm, condominiums around 10,450 €/sqm and houses around 9,850 €/sqm (as of 2024, source: Immobilienmakler München Starnberg). The annual rental value is multiplied by the factor set out in section 14 BewG — the younger the beneficiary, the higher the capital value and the lower the lump-sum payment. Market figures for your location are shown in the Market overview Munich.
Condominium in Munich, market value €850,000, beneficiary 75 years old, annual rental value 4% (€34,000). Multiplier approximately 11.27 → Capital value of the usufruct approximately €383,000. This leaves a one-off payment of roughly €466,000, in addition to rent-free living worth approximately €2,830 per month.
Non-binding estimate according to §14 BewG [Bewertungsgesetz] and mortality tables 2020/22 (DESTATIS). The binding offer depends on location, condition, rental value appraisal and investor.
What does usufruct mean for property sales in Munich?
You sell your Munich property and retain the right of usufruct: you may continue to occupy the property yourself or rent it out and remain the economic owner. This right is entered in the first rank of the land register, even before the buyer is registered as owner.
How is the usufruct value calculated?
The capital value results from the annual rental value multiplied by the multiplier according to §14 BewG, which depends on the age and gender of the entitled person. This capital value is deducted from the market value; the difference is your payout.
How much capital does a usufruct release in Munich?
Example: Condominium with a market value of 850,000 €, entitled person 75 years old, annual rental value 4 % (34,000 €). The capital value of the usufruct is approximately 383,000 €, with an estimated payout of 466,000 €. The actual amount depends on location, condition, rental value appraisal, and investor.
May I rent out the property with usufruct?
Yes. This is precisely how usufruct differs from a mere right of abode: as a usufructuary, you may rent out the property and retain the rental income — for example, if you later move into a care facility.
Who bears maintenance and ancillary costs?
Legally, the usufructuary bears ordinary maintenance, while the owner bears extraordinary measures such as roof or heating replacement. The distribution can be regulated differently in the purchase agreement; we negotiate this with the investor.
Is the payout tax-free?
The sale of an owner-occupied property is generally income tax-free after the deadlines of §23 EStG (Income Tax Act). For rented properties and gifts within the scope of succession planning, separate rules apply — tax advice is required before completion.
Usufruct or life annuity?
Usufruct provides a high one-off payment plus extensive rights of use, while a life annuity provides a predictable monthly income. Those who need capital for gifts, care provisions, or refinancing usually choose usufruct; those seeking ongoing liquidity choose a life annuity.
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