Nießbrauch (usufruct) — definition, tax, Vorbehalt, practice

Nießbrauch is the real right to draw the full uses of someone else's asset (§ 1030 BGB). For real estate this means: the Nießbraucher receives the rental income, pays the running costs and decides on usage — but is not the owner.

Capital value = annual return × multiplier from Anlage 9a BewG. Multiplier depends on the Schenker's age and sex. For a 60-year-old Schenker with 24,000 EUR annual rental income, the capital value is around 280,000 EUR — reducing the taxable Schenkung value by that amount.

The Schenker reserves Nießbrauch at the moment of the Schenkung. The recipient receives bare ownership (Eigentum) — but no rental income, no decision-making power as long as the Schenker lives. Standard tool for Schenkungen to children where the Schenker still needs the income.

Pflichtteil law and § 2325 BGB look at substantive asset depletion. With Vorbehaltsnießbrauch, the Schenker retains the economic use — courts therefore frequently assume that the deadline does not start until the Nießbrauch ends. Tax-wise it is different: the Schenkungsteuer deadline runs.

The recipient gets the asset on paper but not the income or decision-making power. Renovation costs, financing, sale — all blocked while Nießbrauch runs. With long Nießbrauch durations (30+ years), the structure can effectively hollow out the Schenkung.