- Capital value of the Niessbrauch (German usufruct, § 1030 BGB) = annual value (typically the annual rent) × capitalisation factor (from the BMF mortality table)
Calculating the Niessbrauch is the critical figure for the tax effect — and at the same time the one most often misunderstood. Set the capital value too high and you risk a recalculation by the tax office. Set it too low and you give away tax headroom.
Calculating Niessbrauch is standard: annual value × capitalisation factor from the BMF mortality table. But: the "correct" annual rent is contested, the factor changes every year, and special cases (joint Niessbrauch, fixed-term Niessbrauch) need their own formulas.
The basic formula
Capital value = annual value × multiplier
The multiplier comes from § 14 BewG in conjunction with the current mortality table of the federal finance ministry (BMF).
Three figures therefore have to be determined:
- Annual value. For let property: the local market annual rent (12 × monthly gross rent). For owner-occupation: the comparable rent under the local rent index. For securities: the average annual yield over the past three years.
- Age of the Niessbrauch holder as at the valuation date.
- Capitalisation factor from the BMF mortality table — dependent on age and sex.
Value reduction table 2025/2026 (excerpt)
The following table shows typical capitalisation factors based on the BMF mortality table. The values are rounded — for the official calculation, the factors actually in force at the time must be used at the tax office.
| Age | Multiplier men | Multiplier women |
|---|---|---|
| 50 | 16.5 | 17.4 |
| 55 | 14.3 | 15.4 |
| 60 | 12.3 | 13.4 |
| 65 | 10.3 | 11.3 |
| 70 | 8.3 | 9.3 |
| 75 | 6.6 | 7.5 |
| 80 | 4.9 | 5.8 |
| 85 | 3.5 | 4.2 |
| 90 | 2.3 | 2.9 |
The younger, the higher the multiplier — and therefore the capital value of the Niessbrauch. Women have higher factors on average (longer remaining life expectancy).
Three practical examples
Example 1: 55-year-old female donor
Starting point: donor 55, house with a market value of EUR 800,000, local market rent EUR 2,000 per month.
- Annual value: 2,000 × 12 = EUR 24,000
- Multiplier woman 55: 15.4
- Capital value of the Niessbrauch: 24,000 × 15.4 = EUR 369,600
- Taxable Schenkung value: 800,000 − 369,600 = EUR 430,400
For a married couple with one child and the doubled Freibetrag (personal allowance) of EUR 800,000: fully tax-free.
Example 2: 65-year-old male donor
Starting point: donor 65, let condominium worth EUR 400,000, monthly rent EUR 1,200.
- Annual value: 1,200 × 12 = EUR 14,400
- Multiplier man 65: 10.3
- Capital value of the Niessbrauch: 14,400 × 10.3 = EUR 148,320
- Taxable Schenkung value: 400,000 − 148,320 = EUR 251,680
With one child and the EUR 400,000 Freibetrag: fully tax-free.
Example 3: 75-year-old female donor
Starting point: donor 75, house with a market value of EUR 1,000,000, comparable rent EUR 2,500 per month.
- Annual value: 2,500 × 12 = EUR 30,000
- Multiplier woman 75: 7.5
- Capital value of the Niessbrauch: 30,000 × 7.5 = EUR 225,000
- Taxable Schenkung value: 1,000,000 − 225,000 = EUR 775,000
With one child and the EUR 400,000 Freibetrag: EUR 375,000 above the allowance. Schenkungsteuer (German gift tax) at 15 percent (tax class I, third bracket): around EUR 56,250.
For comparison without Niessbrauch: 1,000,000 − 400,000 = EUR 600,000 taxable × 15 percent = EUR 90,000. Saving through the Niessbrauch: around EUR 33,750.
Step by step: calculating the Niessbrauch correctly in 6 stages
- Establish the market value. Expert report or estate agent offers as the basis.
- Determine the local comparable rent. Rent index or professional valuation. Even for owner-occupied properties the comparable rent is used as the annual value.
- Identify age and sex of the Niessbrauch holder. For a joint Niessbrauch (spouses together) take the younger age.
- Pick the current multiplier from the BMF letter. The mortality table is updated annually — always use the one valid for the valuation year.
- Calculate the capital value. Annual value × multiplier.
- Derive the taxable Schenkung value. Market value − capital value of the Niessbrauch. Schenkungsteuer is calculated on this reduced figure.
Special cases in practice
Joint Niessbrauch (spouses together)
If spouses keep a Niessbrauch jointly, the multiplier of the younger spouse is used (longer-running right). On the death of the first-deceased the Niessbrauch continues for the survivor — which is tax-advantageous.
Fixed-term Niessbrauch
If the Niessbrauch is limited in time (for example 10 years), a different multiplier applies — usually lower than the life multiplier. Reason: shorter term, lower economic value.
Quota Niessbrauch
If the Niessbrauch covers only a share (for example 50 percent of the rents), the capital value is reduced accordingly. Practically relevant in mixed structures.
Niessbrauch over securities
For a Niessbrauch over securities the annual value is the average annual yield (dividends, interest) of the past three years. With strongly fluctuating returns the tax office can require a weighted analysis.
Comparative calculation: value reduction by age
| Donor age | Multiplier (woman) | Value reduction at EUR 600,000 + EUR 1,500 rent | Taxable Schenkung value |
|---|---|---|---|
| 55 | 15.4 | EUR 277,200 (46 %) | EUR 322,800 |
| 60 | 13.4 | EUR 241,200 (40 %) | EUR 358,800 |
| 65 | 11.3 | EUR 203,400 (34 %) | EUR 396,600 |
| 70 | 9.3 | EUR 167,400 (28 %) | EUR 432,600 |
| 75 | 7.5 | EUR 135,000 (23 %) | EUR 465,000 |
| 80 | 5.8 | EUR 104,400 (17 %) | EUR 495,600 |
The table makes it clear: anyone gifting at 55 gets almost twice as far as someone gifting at 80. Early planning is worth six- to seven-figure amounts here.
Frequently asked questions
Which value is taken as the annual rent?
For let properties: the actual gross annual rent. For owner-occupied properties: the local comparable rent under the rent index. For very unusual figures the tax office may require a correction.
Where do I find the current BMF mortality table?
On the website of the Federal Ministry of Finance in the BMF letters. The mortality table is updated annually, usually in October of the previous year for the following year. Steuerberater (German tax advisors) have access to the factors currently in force.
What is the difference between capital value and value reduction?
The capital value is the value of the Niessbrauch right itself (annual value × multiplier). The value reduction is the amount by which the taxable Schenkung value drops — that is, market value minus capital value. Both are expressed in EUR but refer to different quantities.
Can the multiplier be challenged?
In theory yes, in practice rarely with success. The BMF mortality table is the standard. In cases of particular health impairments (shorter statistical remaining life expectancy) a correction can be applied for — but it requires a medical report.
How does the multiplier affect the Schenkungsteuer?
The higher the multiplier, the higher the capital value, the lower the taxable Schenkung value, the less Schenkungsteuer. Gifting early (at a low age) maximises the tax advantage.
What happens with a joint Niessbrauch of two spouses?
The multiplier of the younger spouse is used (longer-running right). On the death of the first-deceased the Niessbrauch continues for the survivor; no later tax correction is made.
Can the Niessbrauch be converted or cancelled retrospectively?
Yes, by notarial agreement. Cancellation or capitalisation does however trigger a tax valuation — if the owner receives more value than before, fresh Schenkungsteuer can arise.
How does the Niessbrauch affect the Pflichtteil (compulsory share, § 2303 BGB)?
With a comprehensive Niessbrauch reservation the 10-year clock for Pflichtteilsergaenzung (claim for supplementation, § 2325 BGB) regularly does NOT start to run under settled BGH case law (the Genussverzicht doctrine, BGH IV ZR 30/76 and follow-up case law). More on this in the main guide Niessbrauch 2026.
Further detailed answers
- Niessbrauch 2026: definition, tax, reservation, practice — main guide
- Niessbrauch disadvantages for children — what the next generation actually inherits
- Niessbrauch on a house — transfer and tax
- Niessbrauchsrecht in the Grundbuch
- Niessbrauch Schenkung saving tax
- Topic hub Niessbrauch
Lead magnet: have the Niessbrauch calculated
- Erbschaftsteuer (German inheritance tax) calculator — online calculation of Schenkungsteuer with and without Niessbrauch.
- Succession checklist — with a valuation step for gifts.
- Book a first meeting — individual Niessbrauch calculation for your constellation.
Authority sources
- § 14 BewG (valuation of life-long uses)
- § 1030 BGB (Niessbrauch)
- § 16 ErbStG (Schenkungsteuer Freibetraege)
- § 19 ErbStG (tax rates)
- BMF letter on the mortality table (annual update)
- BFH judgment of 30.09.2015 — II R 13/14 (valuation of the reservation Niessbrauch)
- 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)
Free guide
Succession Checklist
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Free practical guide for entrepreneurs and families with assets. Includes BGB and ErbStG (German Civil Code and Inheritance Tax Act) references, instant checks and practitioner notes.
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