Usufruct and lifetime transfer of property in Germany
Handing the house to the children during your lifetime while keeping the rent: the German usufruct (Nießbrauch) separates ownership from the right to the income. The first module covers civil law: powers, the cost split under sections 1041 and 1047 BGB, registration in the land register, extinction on death and the ten-year periods of a lifetime transfer. The second covers tax: the capitalised usufruct under sections 14 to 16 BewG reduces the gift, an early death can change that retroactively, and the rental income stays with the usufructuary.
Intermediate2 modules43 minModule 1 free to read
2026 rules — verified on September 23, 2026
Figures are tied to dated, sourced tax constants. A module whose rules have changed is flagged for review, and is unpublished automatically beyond 90 days.
This content is part of the path: Paying tax on inheritances and gifts· Step 3 of 10· Next step: German compulsory share (Pflichtteil) — children and spouse by property regime
By the end of this course, you can…
These outcomes are the modules' own: the promise cannot say anything the course does not teach.
- describe the usufruct as a right to the benefits of someone else's property
- tell apart what the usufructuary may do with the property and what remains reserved to the owner
- allocate running costs and charges correctly under sections 1041, 1045 and 1047 BGB
- explain how a usufruct over land comes into being and when it ends
- keep the civil-law ten-year periods of a lifetime transfer apart
- explain why a reserved usufruct reduces the enrichment subject to gift tax
- work through the capital value of a lifelong usufruct under sections 14 to 16 BewG step by step
- apply the cap on the annual value under section 16 BewG
- recognise when an early death of the usufructuary changes the assessment
- allocate who is taxed on the rental income under a reserved usufruct
The programme, module by module
Each module has its own page. Durations are derived from the actual text, never announced by hand.
- Module 122 minFree — no accountThe usufruct: passing on ownership, keeping the incomeWhat you will be able to do
- describe the usufruct as a right to the benefits of someone else's property
- tell apart what the usufructuary may do with the property and what remains reserved to the owner
- allocate running costs and charges correctly under sections 1041, 1045 and 1047 BGB
- explain how a usufruct over land comes into being and when it ends
- keep the civil-law ten-year periods of a lifetime transfer apart
- Module 221 minIncluded in the full courseWhat the reservation does for gift tax and income taxWhat you will be able to do
- explain why a reserved usufruct reduces the enrichment subject to gift tax
- work through the capital value of a lifelong usufruct under sections 14 to 16 BewG step by step
- apply the cap on the annual value under section 16 BewG
- recognise when an early death of the usufructuary changes the assessment
- allocate who is taxed on the rental income under a reserved usufruct
What you take away
A handout you keep, not just a page you read. The sections are derived from the course itself: what is announced here is exactly what gets generated.
Participant handout (PDF)
PDF
- Learning objectives (2)
- Key figures (2)
- Mistakes to avoid (2)
- Official sources (2)
Exercise workbook (Word)
Word
- Learning objectives (2)
- Key figures (2)
- Mistakes to avoid (2)
- Official sources (2)
Answers live in a separate appendix: the participant handout and the workbook stay distributable before the exercise.
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Educational content, current with the sources cited. It does not replace advice tailored to your situation. These courses are neither certifying nor CPF-eligible: they prepare for no certification registered with the French RNCP or specific register.