Life Annuity (Leibrente)
Real estate life annuity (Leibrente): how does selling a property in exchange for a lifelong pension work? Model, tax aspects, and risks in Germany.
Financial
§ 759 ff. BGB
Auch bekannt als: annuity sale, reverse annuity
With a life annuity (Leibrente) under German law, a property owner sells their real estate in exchange for lifelong monthly annuity payments instead of a one-time purchase price. The seller frequently retains a lifelong right of residence (usufruct/Niessbrauch). For tax purposes, only the income portion (Ertragsanteil) is subject to income tax for the recipient. (§ 759 ff. BGB)