Glossary
Wohnrecht
Wohnrecht: Wohnrecht is the German right of residence (§ 1093 BGB). It lets a person live in a building or part of it while someone else owns it. Unlike a usufruct, the holder may not let the rooms.
What is a Wohnrecht?
A Wohnrecht is a right entered in the German land register to live in a flat or house yourself (§ 1093 BGB). It is common when parents transfer their house to their children and want to keep living there. It often covers only one floor or certain rooms.
Right of residence and gift tax
A reserved right of residence reduces the value of the gift by its capital value:
Capital value = annual value × multiplier
The annual value is the local net rent of the space you use. You can work out the effect with the Gift Tax Calculator.
Wohnrecht or Nießbrauch?
If you want to let the property later or keep the rent, you need a usufruct (Nießbrauch). For simply staying in your home, a right of residence is enough.
This page is for information only and does not replace tax or legal advice.
Frequently asked questions
Wohnrecht means right of residence. It is a right registered in the German land register that lets a person live in a home owned by someone else, often for life.
With a Wohnrecht you may only live in the property yourself, often in just part of it. A Nießbrauch (usufruct) also lets you rent it out and keep the rent. For tax both are valued as annual value times multiplier.
The annual value is the local net rent for the space you use. It is multiplied by the multiplier for your age and sex, and the resulting capital value reduces the value of the gift.