Tax adviser for Frankfurt and Hesse
Transferring a house in Frankfurt
German tax advice on property transfers
Florian Enders is a German tax adviser (Steuerberater) in Frankfurt am Main and Liederbach. He advises families from Frankfurt, Wiesbaden and across Hesse who want to transfer a house or give a property to their children or spouse on the German tax questions: allowances and gift tax, a right of residence or usufruct and the valuation by the tax office. In-person appointments in Frankfurt or Liederbach are available by arrangement; video calls are also possible.
House transfers in Frankfurt and Hesse: what matters
Transferring a house to family members during your lifetime is usually a gift. Whether gift tax is due depends on four things: the value the tax office determines for the house, the allowance between you and the recipient, earlier gifts within ten years, and whether you reserve a right of residence or usufruct. Real estate transfer tax does not apply to transfers to a spouse, children or grandchildren.
The transfer agreement is notarised by a notary; the recipient becomes the owner only on registration in the land register. Florian Enders clarifies the tax side with you beforehand: which share is transferred when, which right you reserve and how the gift of the house fits with a later inheritance.
Source: § 3 nos. 4 and 6 GrEStG; § 311b para. 1, §§ 873, 925 BGB; § 14 para. 1 ErbStG
Allowances 2026 for children, spouses and grandchildren
How high the allowance is depends on how closely you are related or connected to the recipient; this also determines the tax class. The amounts apply in full if the donor or the recipient lives in Germany. They apply per donor: if both parents own the house, the child has a separate allowance for the mother's share and for the father's share.
| Recipient | Allowance | Tax class |
|---|---|---|
| Spouses and registered civil partners | 500,000 EUR | I |
| Children and stepchildren | 400,000 EUR | I |
| Grandchildren | 200,000 EUR | I |
| Parents on inheritance | 100,000 EUR | I |
| Siblings, nieces and nephews | 20,000 EUR | II |
| Unmarried partners and other persons | 20,000 EUR | III |
Source: §§ 15, 16 para. 1 ErbStG. Grandchildren whose parent, the donor's child, has already died have 400,000 EUR.
A worked example without earlier gifts: if the tax office determines a value of 800,000 EUR for a house that a mother gives to her child, 400,000 EUR remains taxable after the allowance. In tax class I, a rate of 15 per cent applies, so the gift tax is 60,000 EUR. If the mother reserves a right of residence or usufruct, the taxable amount falls by the value of that right; the next chapter shows how it is calculated.
Spouses have a special rule: if one spouse gives the family home to the other, this is tax-free regardless of its value to the extent that the couple live in the house themselves; the same applies to registered civil partners. For children, a comparable exemption exists only on inheritance and under stricter conditions.
Source: § 2 para. 1 no. 1, § 13 para. 1 nos. 4a and 4c, § 19 para. 1 ErbStG
Transferring a house with a right of residence or usufruct
Many parents want to transfer the house and still live in it. Two rights serve this purpose; you reserve them on the transfer and they are entered in the land register. The right of residence (Wohnungsrecht) allows you to use the house or part of it as your home; you may let it only if the contract allows this. The usufruct (Nießbrauch) allows all uses, including letting and keeping the rental income. Your child becomes the owner, while the use remains with you to the extent of your right.
For tax purposes, the value of the house minus the value of your right then counts for your child. The tax office calculates the value of your right in two steps. First, it determines the annual value of the use, for living in the house the usual rent; no more than the tax value of the house divided by 18.6 is applied. It then multiplies the annual value by a factor for a lifelong right, the multiplier (Vervielfältiger). The Federal Ministry of Finance publishes this factor in a table by age and sex; the table for the year of the transfer applies. The older you are at the time of the transfer, the smaller the multiplier and thus the deduction.
If the parent dies shortly after the transfer, the tax office corrects the tax according to the actual duration of the right, and the tax may then increase for your child. How short depends on age: if the parent is over 70 and no older than 75 at the time of the transfer, this applies if the right has existed for no more than five years. Which right fits depends on whether you need rental income, on your age and on what your children plan to do with the house. The guides Usufruct (Nießbrauch) on a house and Transferring the house to one child and the compulsory share (Pflichtteil) go into more detail; the topic overview: transferring a home brings together all guides on the subject.
Source: § 873 para. 1, § 1030, § 1092 para. 1, § 1093 BGB; § 7 para. 1 no. 1, § 10 para. 1, § 11 ErbStG; § 14 paras. 1 and 2, § 15 para. 2, § 16 BewG
Understanding the ten-year period
Gifts from the same person to the same recipient are added together over ten years. Within ten years, the allowance in relation to the same person is therefore available only once; a gift made more than ten years earlier is no longer added. The aggregation also covers an inheritance: if your child inherits from you within ten years of a gift, the gift and the inheritance are added together. Other gifts from the same person are also included, for example shares in a company; the transfer of a business is additionally subject to its own rules, which the guide to business succession (Unternehmensnachfolge) explains. Transferring a house in shares over several ten-year periods allows the allowance to be used more than once; this takes time and a plan that suits the family.
Two further ten-year rules affect a house transfer. Persons entitled to a compulsory portion (Pflichtteil), such as the siblings of the child receiving the gift, can claim a supplement to their compulsory portion after the donor's death; the gift counts in full in the first year before the death, one tenth less for each year after that and not at all after ten years. If a parent later falls into need, for example because of high care costs, they can reclaim the gift if the need arises within ten years of the gift. When these two periods begin if you reserve a usufruct or right of residence is part of the review of your case. The guide The ten-year period for gifts when care is needed gives an overview of all three periods, and the guide Gift tax allowance: 400,000 EUR per child from each parent every ten years covers the allowances in detail. Further guides on gifts are collected in the topic overview: lifetime gifts.
Source: §§ 13a, 13b, § 14 para. 1 ErbStG; § 2325 para. 3, §§ 528, 529 para. 1 BGB
Costs of a house transfer in Frankfurt
The costs depend mainly on the value of the house and on how the transfer is structured. Specific amounts can only be determined from the details of your case; the table shows what determines each item.
| Item | What determines the amount |
|---|---|
| Notarial certification | Court and Notary Fees Act, based on the value of the house |
| Land register entry | Court and Notary Fees Act, based on the value of the house |
| Real estate transfer tax | Not payable for spouses, children and grandchildren |
| Gift tax | Value after deducting the allowance and the reserved right, rate depending on tax class and amount |
| Market value appraisal | Optional, to prove a lower value |
| Tax advice | Introductory call 15 minutes free of charge, initial consultation 60 minutes €297.50 including VAT, further advice by agreement |
Source: § 311b para. 1 BGB, § 3 para. 1, § 46 GNotKG, § 3 nos. 4 and 6 GrEStG, § 19 para. 1 ErbStG, § 198 BewG
How the tax office values a house in Frankfurt
For gift tax purposes, the tax office for the district in which the house is located determines a separate tax value, the property value (Grundbesitzwert). How it calculates depends on the type of property. One- and two-family houses and condominium flats are valued in principle on the basis of purchase prices of comparable plots (comparison value method) and, where these are not available, using the asset value method. Residential rental properties, meaning buildings with more than two flats that are used more than 80 per cent for residential purposes, are valued by the tax office using the income value method.
The valuation is based on data from the local valuation committee (Gutachterausschuss), such as standard land values (Bodenrichtwerte). These are average location values for the land; as a rule, the land value is the plot area multiplied by the standard land value. Standard land values are published, and anyone can request information from the valuation committee, so you can look up the value for your plot in advance. If the market value of your house is below the assessed value, you can prove this with an expert valuation or a recent purchase price. If such a valuation already takes your right of residence or usufruct into account, the right is not deducted a second time. Whether this is worthwhile and how to divide the transfer is clarified in the advice; in the free introductory call you first discuss whether and how Florian Enders can help you.
Source: § 151 para. 1 sentence 1 no. 1, § 152 no. 1, § 179, § 181 para. 3, §§ 182, 183, 198 BewG; § 196 paras. 1 and 3 BauGB; § 10 para. 6b ErbStG
Frequently asked questions about house transfers in Frankfurt
Who can help with a house transfer in Frankfurt and the surrounding area?
Florian Enders, a German tax adviser (Steuerberater) in Frankfurt am Main and Liederbach, advises families from Frankfurt, Wiesbaden and across Hesse who want to transfer a house or give a property to family members. He deals with the German tax questions of the transfer: allowances, gift tax, a right of residence or usufruct and the valuation by the tax office. The transfer agreement is notarised by a notary (§ 311b para. 1 BGB). In-person appointments in Frankfurt or Liederbach are available by arrangement; video calls are also possible.
Which allowance applies if I transfer my house to my child?
A child has an allowance of 400,000 EUR in relation to each parent. Spouses and registered civil partners have 500,000 EUR, grandchildren 200,000 EUR or, if their parent, the donor's child, has already died, 400,000 EUR. Gifts from the same person within ten years are added together. Any amount above the allowance is taxed at 7 to 30 per cent in tax class I (§ 14 para. 1, § 16 para. 1, § 19 para. 1 ErbStG).
Can I transfer my house and continue to live in it?
Yes. When you transfer the house, you can reserve a right of residence (Wohnungsrecht) or a usufruct (Nießbrauch); both rights are entered in the land register. The right of residence allows you to live in the house. The usufruct allows all uses, including letting. Your child becomes the owner, while the use remains with you to the extent of your right (§§ 873, 1030, 1093 BGB).
How much does a right of residence or usufruct reduce gift tax?
For your child, the value of the house minus the value of your right counts. The tax office first determines the annual value of the use, for living in the house the usual rent; no more than the tax value of the house divided by 18.6 is applied. It multiplies this annual value by a multiplier (Vervielfältiger) for a lifelong right, which the Federal Ministry of Finance publishes in a table by age and sex; the table for the year of the transfer applies. The older the holders of the right at the time of the transfer, the smaller the multiplier and thus the deduction. How much the tax falls can only be calculated from the assessed value of the house, the usual rent and the age of the holders (§ 10 para. 1, § 11 ErbStG, §§ 14, 15, 16 BewG).
How does the tax office value a house in Frankfurt?
The tax office for the district in which the house is located determines a separate tax value, the property value (Grundbesitzwert). It values one- and two-family houses and condominium flats in principle using the comparison value method and, where no suitable comparison values exist, the asset value method; residential rental properties are valued using the income value method. As a rule, the land value is the plot area multiplied by the standard land value (Bodenrichtwert). If the market value is lower, you can prove it with an expert valuation or a recent purchase price (§§ 151, 152, 179, 182, 198 BewG).
What does advice on a house transfer cost?
The introductory call lasts 15 minutes and is free of charge. You describe your concern and Florian Enders tells you whether and how he can help; a recommendation on your house is not part of this call. For a detailed discussion, you can book an initial consultation of 60 minutes for €297.50 including VAT. Any further review and its fee are agreed separately. Notary and land registry fees are additional.
When should I see a tax adviser about a house transfer?
Before the notary drafts the transfer agreement. At that point, allowances, a reserved right of residence or usufruct, contractual rights to reclaim the gift and earlier gifts can still be taken into account in the contract. A gift from the same person made less than ten years earlier is added (§ 14 para. 1 ErbStG).
Next step
Advice on your house transfer
In the free 15-minute introductory call, you describe your concern and Florian Enders tells you whether and how he can help. For a detailed discussion of your case, you can book an initial consultation of 60 minutes for €297.50 including VAT. Any further tax review and its fee are agreed separately.