- The lebenslanges Wohnrecht (lifelong right of residence under § 1093 BGB) secures the donor's right to live in the property until death — entered in section II of the Grundbuch
The lebenslanges Wohnrecht (lifelong right of residence) is the most frequent protective clause when transferring a house. Parents want to give the house to the children — but still live in it themselves for decades. That works — when the clause is cleanly drafted notarially and entered in the Grundbuch.
Lebenslanges Wohnrecht means: you transfer the ownership but keep the right to live there — until your death. Entered in the Grundbuch, secured in rem and protected against sale, insolvency or death of the child. Economically it is the elegant compromise between transfer and lifetime security.
What is the lebenslanges Wohnrecht?
The Wohnrecht under § 1093 BGB is an in rem right — it operates against anyone who acquires the house after the transfer. Content: the holder of the Wohnrecht is entitled to use the apartment or house, to the exclusion of the owner.
Four central characteristics:
- Entry in the Grundbuch (section II) is constitutive — without entry there is no in rem Wohnrecht
- Personally bound — the Wohnrecht expires on the death of the holder, it is not inheritable
- Right of use, not right of disposal — the occupant may live there but not sell or rent out
- Protected against insolvency and sale — even if the child resells the house, the Wohnrecht continues to exist
Wohnrecht vs. Niessbrauch — the decisive difference
Both are usage rights but with different scope:
| Criterion | Wohnrecht (§ 1093 BGB) | Niessbrauch (§ 1030 BGB) |
|---|---|---|
| Live there yourself | Yes | Yes |
| Renting out permitted | No (unless expressly agreed) | Yes |
| Drawing income | No | Yes |
| Bearing operating costs | Yes (occupant) | Yes (Niessbraucher) |
| Major repairs | Owner (child) | Niessbraucher |
| Value discount on Schenkung | low to medium | high |
| Pflichtteil period § 2325 BGB starts | for a comprehensive Wohnrecht (more than 50 % of residential area, BGH IV ZR 474/15) also suspended; for a limited Wohnrecht regularly yes | regularly no (BGH IV ZR 30/76) |
In practice I use Wohnrecht for owner-occupied homes and Niessbrauch for rented properties or properties with high value appreciation.
Tax effect: value discount on Schenkung
For Schenkung the fair market value of the property is reduced by the capitalised value of the Wohnrecht. The capitalised value depends on:
- Age of the holder of the Wohnrecht (the younger, the higher the value)
- Estimated remaining life expectancy under the BMF mortality table
- Value of the use (typically the local comparative rent)
Worked example: house with 600,000 EUR fair market value, donor 65 years old, local comparable rent 1,500 EUR/month.
- Annual rent: 18,000 EUR
- Capitalisation factor for a 65-year-old (BMF table): around 11
- Capitalised value of the Wohnrecht: 198,000 EUR
- Taxable Schenkung value: 600,000 - 198,000 = 402,000 EUR
For one child with the 400,000 EUR Freibetrag: almost fully tax-free (only 2,000 EUR above the Freibetrag).
Step by step: Schenkung with Wohnrecht in 7 stages
- Valuation of the property. Expert appraisal or broker valuation as the basis.
- Determination of the local comparable rent. Rental index (Mietspiegel) or professional valuation.
- Calculation of the capitalised value of the Wohnrecht. Using the BMF table by age and annual rent.
- Choice of protective clauses. Which rooms does the Wohnrecht cover? What happens on entry into a care home? What in case of permanent illness?
- Notarial recording. Schenkung agreement with Wohnrecht clause, reclaim rights for the donor.
- Grundbuch entry. Wohnrecht in section II, transfer of ownership in section I.
- Notification of the Finanzamt. § 30 ErbStG within 3 months.
Which clauses belong in the Wohnrecht?
Seven clauses that should be in every Wohnrecht agreement:
- Rooms. Which rooms does the Wohnrecht cover? In a multi-family building: a specific apartment or the whole house?
- Joint use. Garden, garage, cellar, driveway?
- Right to take in others. May the occupant take in life partners, new spouses, caring relatives?
- Prohibition on letting or permission to let. Standard: no right to let. Exception: short-term absence (travel, hospital).
- Costs and repairs. Who pays what — ongoing operating costs, decorative repairs, larger refurbishments?
- Care case. What happens on permanent move into a care home? Does the Wohnrecht expire? Is it capitalised?
- Waiver clause. Can the occupant waive the Wohnrecht against compensation — for example if the house is to be sold?
Without these clauses disputes regularly arise later — particularly when siblings inherit and the holder of the Wohnrecht ages.
Comparison: with and without Wohnrecht
Starting point: donor 65, house 600,000 EUR, one child, local comparable rent 1,500 EUR/month.
| Variant | Taxable value | Schenkungsteuer (child, Freibetrag 400,000 EUR, tax class I) | Pflichtteil period § 2325 BGB |
|---|---|---|---|
| Without Wohnrecht | 600,000 EUR | 200,000 EUR taxable x 11 % (bracket up to 300,000 EUR, § 19 (1) ErbStG) = 22,000 EUR | starts immediately |
| With limited Wohnrecht | 402,000 EUR | 2,000 EUR taxable x 7 % = 140 EUR | starts immediately |
| With comprehensive Wohnrecht (more than 50 % residential area) | 402,000 EUR | 2,000 EUR x 7 % = 140 EUR | suspended analogously to Niessbrauch (BGH IV ZR 474/15) |
| With Niessbrauch | 300,000 EUR | 0 EUR (fully within the Freibetrag) | regularly suspended |
In this example the limited Wohnrecht saves around 21,860 EUR of Schenkungsteuer compared to a Schenkung without reservation and lets the Pflichtteil period under § 2325 BGB run. With a comprehensive Wohnrecht (more than 50 percent of residential area, typical for single-family-home Schenkungen with full parental use) the Wohnrecht acts like a Niessbrauch under BGH IV ZR 474/15 — the Pflichtteil period is then also suspended. With the classic Niessbrauch the tax saving is highest, but the Pflichtteil period is regularly blocked. For the welfare-office period (§ 528, § 529 BGB) the same applies regardless of the reservation: the period runs from the legal-property performance, BGH X ZR 140/10.
Frequently asked questions
After the Schenkung with Wohnrecht, can I still sell the house?
Legally the house belongs to the child who received the Schenkung — you can no longer sell it yourself. The child could sell, but the Wohnrecht remains in place (it operates against any new owner). A sale without Wohnrecht is only possible if the holder waives notarially (usually against compensation).
What happens if I move into a care home?
That depends on the Wohnrecht agreement. Standard: the Wohnrecht expires only on death, not on moving out. BUT: if taking in caring relatives is not permitted and you no longer live there yourself, the child can in practice use the rooms. For the care home case an express capitalisation clause should be in the agreement.
What does the Wohnrecht cost on top of the Schenkung agreement?
The extra effort is small: notarial recording of the Wohnrecht is part of the Schenkung agreement, the Grundbuch entry fee is 50-150 EUR additional. Total surcharge around 100-200 EUR on top of the Schenkung costs.
Can I change the Wohnrecht later?
Yes, with a notarial agreement between the holder of the Wohnrecht and the owner. Entry of the change in the Grundbuch is required. Frequent changes: capitalisation against payment, addition of further rooms, extension to caring persons.
Who pays Hausgeld (property charges) and repairs for the Wohnrecht?
The holder of the Wohnrecht pays the ongoing operating costs (Hausgeld, heating, electricity, refuse charges, decorative repairs). Larger refurbishments and structural maintenance (roof, heating system, windows) are borne by the owner — that is, the child who received the Schenkung.
What is the difference to Vorbehaltsniessbrauch (reserved usufruct)?
For Niessbrauch (§ 1030 BGB) the donor additionally has the right to let the property and to draw the income from it. Obligations and value discount are higher. For owner-occupied properties Wohnrecht is usually simpler; for rented or profitable properties Niessbrauch is often optimal.
How is the Wohnrecht entered in the Grundbuch?
In section II of the Grundbuch — as a limited personal easement (§ 1093 BGB). The notary prepares the entry, the Grundbuch office carries it out. Entry fee under GNotKG, typically 50-200 EUR.
Does the Wohnrecht also work on the death of the child?
Yes. The Wohnrecht continues to exist regardless of who is the owner. If the child dies and the grandchildren or in-laws inherit, the Wohnrecht continues. Even on sale, insolvency or compulsory auction the Wohnrecht is protected.
Further detailed answers
- Transferring a house in 2026: main guide with instructions
- Transferring a house: paying off siblings
- Cost of transferring a house in 2026
- Transferring a house: the 10-year period and care
- Transferring a house to one child and the Pflichtteil
- Niessbrauch Schenkung: saving tax
Lead magnet: structure the Wohnrecht
- Erbschaftsteuer calculator — Calculation of the tax burden with and without Wohnrecht.
- Emergency folder — Documentation of all Wohnrechte and Schenkungen.
- Book a first meeting — Individual Wohnrecht structuring for your property.
Authority sources
- § 1093 BGB (Wohnungsrecht)
- § 1030 BGB (Niessbrauch)
- § 873 BGB (Grundbuch entry)
- § 16 ErbStG (Schenkungsteuer Freibetraege)
- § 30 ErbStG (notification obligation)
- § 2325 BGB (Pflichtteil supplement)
- BMF letter on the mortality table for valuing usage rights
- BGH case law on the Genussverzicht doctrine (BGH IV ZR 30/76 and follow-up case law — suspension of the ten-year period § 2325 para. 3 BGB for comprehensive Vorbehaltsniessbrauch)
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