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Usufruct & Right of Residence Calculator 2026

What is a usufruct or right of residence worth for German tax purposes? Calculate the capital value with the official multipliers from 1 January 2026 and see how much the reservation reduces gift tax.

100% freeNo data storedMultipliers from 1 Jan 2026

Official values, but no tax advice

The calculator uses the multipliers from the Federal Ministry of Finance letter of 21 Oct 2025 (life table 2022/2024), valid for valuation dates from 1 January 2026. Other tables apply to valuation dates up to 31 Dec 2025. Gift tax is a simplified estimate; for real transfers, consult a tax adviser or notary.

Benefit & Property

€
€
€

Beneficiary & Term

yrs

Gift

Capital value of the right

€181,195

40.3 % of the property value (€450,000)

Annual value applied

€14,400.00

Multiplier

× 12.583

Avg. life expectancy per table

20.91 years

Maximum annual value under § 16 BewG: €24,193.55 — not reached.

Gift with and without reservation

Tax class IWithout usufruct/rightWith reservation
Value of the gift€450,000€450,000
− Capital value deducted—€181,195
− Personal allowance€400,000€400,000
= Taxable acquisition€50,000€0
Tax rate7 %0 %
Gift tax€3,500€0
Tax saved by the reservation€3,500

More on allowances and tax classes in the Inheritance Tax Calculator.

Correction on early death (§ 14(2) BewG)

If the beneficiary, aged 65, dies within 7 years of the valuation date, the tax assessment can be corrected on application based on the actual duration.

Capital value by age at the same annual value

Assumptions & Notes

  • Annual value = 12 × monthly benefit minus the costs the beneficiary bears. For a right of residence this is usually the local net rent for the rooms used.
  • Multipliers for lifelong rights: Federal Ministry of Finance letter of 21 Oct 2025, valid for valuation dates from 1 Jan 2026. Fixed-term rights: Annex 9a to § 13 BewG, capped at the lifelong value.
  • Simplified gift tax: allowance under § 16 ErbStG, rate under § 19 ErbStG with hardship relief, no prior gifts within 10 years, no other burdens. If the right has already reduced the property's tax value (e.g. via an appraisal), a second deduction is excluded (§ 10(6b) ErbStG).
  • With several beneficiaries (e.g. a married couple), § 14(3) BewG uses the highest or lowest multiplier depending on the arrangement. Non-binding estimate, no tax or legal advice.

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Guide: Usufruct & Right of Residence

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Frequently Asked Questions

The capital value is the annual value of the benefit multiplied by a multiplier (§ 14 BewG). The annual value is usually the rent saved or the rental income per year, minus the costs the beneficiary bears. For lifelong rights, the multiplier depends on age and sex. Example: a 65-year-old woman with an annual value of €14,400 has a multiplier of 12.583 for valuation dates from 2026, so the capital value is about €181,195.

For valuation dates from 1 January 2026, the table from the Federal Ministry of Finance letter of 21 October 2025 applies. It is based on the Federal Statistical Office's life table 2022/2024 and an interest rate of 5.5%. Some values: man aged 60: 12.798, woman aged 60: 13.832, man 70: 9.938, woman 70: 11.107, man 80: 6.509, woman 80: 7.490. What counts is the date of the gift or death, not the date of the tax return.

The annual value may be at most the property value divided by 18.6. With a property tax value of €300,000, that is about €16,129 per year. Anyone with higher rental income can still only use this maximum for the valuation. The rule prevents a right of use from being worth more than the property itself on paper. The calculator checks the limit automatically.

Anyone who gifts a property while reserving the usufruct or a right of residence is economically giving away less. The capital value of the right is therefore deducted from the value of the gift. Example: house €450,000, mother aged 65, €1,200 monthly rent: capital value about €181,195; the gift falls to about €268,805 and thus below the €400,000 allowance for a child. Without the reservation, the €50,000 above the allowance would cost €3,500 in tax.

Then the tax can be corrected on application under § 14(2) BewG, i.e. recalculated based on the actual duration. This only applies within fixed periods that depend on age on the valuation date: for example at most 7 years for over 60 to 65, 6 years for over 65 to 70, or 4 years for over 75 to 80. For the recipient this usually means additional tax, because the deduction becomes smaller.

Yes, the method is the same: annual value times multiplier, capped under § 16 BewG. The difference is the annual value. For a right of residence, the local rent for the rooms the beneficiary may occupy is used. For a usufruct, the entire yield counts, including rental income from let flats. A right of residence in a granny flat is therefore usually worth far less than a usufruct over the whole house.

For rights over a fixed number of years, the multiplier from Annex 9a to § 13 BewG applies, e.g. 7.745 for 10 years or 12.279 for 20 years. Because a person's usufruct or right of residence ends at death at the latest, § 13(1) sentence 2 BewG says the value may not exceed the lifelong value. For an 88-year-old man with a 10-year term, the lower lifelong multiplier of 3.778 therefore applies.

What counts is the property tax value under the Valuation Act, determined by the tax office for gift or inheritance tax. It can differ from the purchase price or market value. If you have an appraisal in which the usufruct has already reduced the value, the right may not be deducted again (§ 10(6b) ErbStG). For a first estimate, you can use a realistic market value.