Question 1

How is the value of a usufruct calculated?

Accepted Answer

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.

Question 2

Which multipliers apply in 2026?

Accepted Answer

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.

Question 3

What does the cap under § 16 BewG mean?

Accepted Answer

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.

Question 4

How does a usufruct reduce gift tax?

Accepted Answer

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.

Question 5

What happens if the beneficiary dies early?

Accepted Answer

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.

Question 6

Is a right of residence valued the same way as a usufruct?

Accepted Answer

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.

Question 7

How is a fixed-term usufruct valued?

Accepted Answer

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.

Question 8

Which property value should be used?

Accepted Answer

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.

Guide: Usufruct Value Calculator

Calculating Usufruct in 2026: Capital Value, Multipliers and Gift Tax

Right of Residence or Usufruct? The Differences and What They Are Worth

Gifting Property with a Reserved Usufruct: How Gift Tax Falls

Multipliers 2026: How the Life Table Determines the Value of a Usufruct

Fixed-Term Usufruct and the Cap under § 16 BewG

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