ᐅ Moving in before transfer of ownership / usufruct / rental agreement – disadvantages?

@saralina87

No, never based on the value of the apartment.

Oof.

And how would the usufruct be calculated if the apartment is gifted, but it is not rented out and would simply remain empty and unoccupied?

In other words, I find this rental issue difficult because there is currently no rental at all. First, the property is supposed to be gifted, with a usufruct right established—and then possibly/probably rented out to the recipient at a later point in time.

Frischluft schrieb:

@saralina87

No, never based on the value of the apartment.

Phew.

And how would the usufruct be calculated if the apartment is gifted, but it is not rented out and would simply remain empty and unoccupied?

In other words, I find this rental issue difficult, since currently nothing is rented out. First, the property is to be gifted, a usufruct right established – and then possibly/probably rented out to the recipient at a later time.

It doesn’t matter; even then, the local standard rent is used.
You see, usufruct is basically the regularly harvestable benefits, or the regular savings if you use the property yourself.
The tax office therefore assumes: if you were to rent out the apartment for life, you would receive amount X every month. They multiply this amount by twelve to get the annual value, estimate your expected remaining lifespan, and then capitalize this figure. (There is also discounting and interpolation involved, but that is not important for now.)
You would never get such a value based solely on the apartment’s market value, nor is there a way to calculate it that way.

In general, it is always worthwhile to consult a tax advisor for such arrangements, if only to avoid unpleasant surprises.

Thank you for your explanations.

To be honest, I don’t understand this:
"... it’s that usufruct is basically the regularly harvestable fruits, or a regular saving through owner-occupation." I can’t make sense of that, ... "regularly harvestable fruits" and "regular saving through owner-occupation." 😳
Who is saving what? Why owner-occupation? Who is harvesting fruits? And so on, and so forth.
Who is who in these examples? Who is tenant/owner, who is landlord/usufructuary, etc. ...

Please don’t take this the wrong way – it’s me, not you or your explanation! The topic/structure is just too complex and abstract for me. 🤨

You don’t need to elaborate or explain again, because the important thing now is that we can proceed as mentioned in #9.
Namely: the child moves in officially right away, including registration with the landlord’s certificate – and without any disadvantages or effects on the gift and usufruct registration that will take place in 1-3 months – and then afterwards the rent defined from the child = donee = owner = tenant to the parents = donors = usufructuaries = landlords for the subsequent period.

Good luck

Frischluft schrieb:

Thank you for your explanations.

Honestly, I don’t understand:
"... the usufruct is basically the regularly harvestable fruits, or a regular saving when using the property yourself." I can’t make sense of that... "regularly harvestable fruits" and "regular saving when using it yourself." 😳
Who is saving what? Why self-use? Who harvests fruits? And so on, and so forth.
Who is who in these examples? Who is the tenant/owner, who is the landlord/usufructuary, and so on...

Please don’t take this the wrong way – it’s on me, not you or your explanation! The topic/structure is just too complex and abstract for me. 🤨

You don’t need to elaborate or explain again, because the important thing now is that we can continue as mentioned in #9.
Namely: immediate official move-in of the child, including registration with landlord’s confirmation – and without disadvantages or effects on the gift and usufruct registration that will be completed in 1-3 months – and then subsequently defining rent from the child = recipient = owner = tenant to the parents = donors = usufructuary = landlord for the following period.

Good luck

Just to make this clear and avoid further confusion: What is meant with usufruct value initially only concerns the tax office and the calculation of gift tax!

I can’t contribute anything regarding the further procedure. However, the notary should be able to advise you on that.

The usufruct value is simply based on the age of the usufruct holder and the income value of the apartment. There are corresponding tables for determining the value according to age. The income value of the apartment is calculated from the net income (base rent minus non-recoverable operating costs) and the property interest rate. The property interest rate itself depends on the land value. The exact property interest rate can be determined using the tables in the local real estate market report.
The correct calculation of the usufruct value, as mentioned above, is based on the net income or (if not rented out) on a net income calculated from the local market rent. If you now take a rent significantly below the local market rent, this becomes a point where you have to convince the tax authorities that the usufruct value is actually higher. However, as long as the value of the apartment does not exceed, or does not significantly exceed, €400,000 (approximately $440,000), this is rather unimportant.

In your example, at the beginning:
Tenant --> You
Landlord --> Your parents
And later after the gift:
Owner --> You
Usufructuary --> Your parents
Landlord --> Your parents (if not owner-occupied).

The holders of the usufruct of a property have all the rights and obligations related to the property, except they cannot sell it.