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.
AI generatedThe 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.
Six anonymised example scenarios show how usufruct can reflect different living arrangements and ownership structures.
A single owner wants to strengthen her retirement provision without leaving her familiar apartment. Lifelong usufruct protects her own use while making part of the property's value available as a lump sum.
Key point: calculate the usufruct value and required cash reserve together.
An owner occupies the ground floor and lets the upper unit. Usufruct covers the entire property so that both his home and current or future rental income remain with him.
Key point: define occupancy and letting rights clearly for both units.
A couple wants to remain in the house for now but may move later. Usufruct allows the house to be let after they leave and the rent to help fund their new home.
Key point: regulate letting, management and possible surrender of the right in advance.
Parents want to transfer ownership early while retaining the economic use. Reserved usufruct protects their home and ensures use does not end with the transfer.
Key point: obtain separate advice on tax and succession consequences.
An owner transfers the building but still needs the rent for living expenses. Usufruct therefore covers the income, management and clear rules for new tenancies.
Key point: allocate management powers and major repairs precisely.
An owner plans ahead for possible care needs. She occupies the property while living at home and can let it after a move, using the income for her care.
Key point: expressly preserve the letting right for a later move.
Illustrative, anonymised case scenarios. They are provided for guidance and are not customer reviews.
About the author
This content is the responsibility of Michael Freitag, founder of FREITAG® Immobilien GmbH, based in the Munich & Starnberg region. The sample calculations on this page are simplified and do not replace an individual valuation or tax and legal advice.
Legal basis & sources
Managing Director of FREITAG® Beteiligungsgesellschaft mbH
Every consultation starts with sober figures, not with a promise: what is your property worth, what is your right to stay worth, what is left for you? Gerhard Hahn has been holding these conversations personally for more than three decades — no call centre, no changing contacts.
