Usufruct (Nießbrauch)
Usufruct (Nießbrauch) on real estate in Germany: how it works, what it entails, and its tax implications for property owners.
Legal
§ 1030 ff. BGB
Also known as: right of usufruct, beneficial use right, life interest
Usufruct (Nießbrauch) under German law is the right to comprehensively use a property and draw income from it, while another person remains the owner. It is registered in Division II of the land register (Grundbuch) and expires upon the death of the usufructuary. It is frequently used in gifts to the next generation to reduce gift tax liability.