How is a right of residence agreed?
There is the authority to live in a building or in a part of it (Art. 776 Para. 1 ZGB, right of residence). The right to use arises from the entry in the land register. The legal basis for the entry in the land register is either a publicly notarized contract or a disposition due to death (will). You can find an example of such a clause in our Download center .
Differences to usufruct
An alternative option is the usufruct (see also: Usufruct – Use without ownership ). Right of residence and usufruct have many similarities. An important difference lies in the transferability of the usufruct: unlike with the highly personal right of residence, a usufructuary does not necessarily have to use the rooms himself, but can also rent them out to third parties. He also has the right to administer, but in addition to the maintenance costs, he also has to pay the insurance premiums, mortgage interest and taxes.
The beneficiary of the usufruct, on the other hand, not only has to tax the imputed rental value as additional income, but also has to pay property taxes on the the official value of the property. Whether the usufruct or a right of residence is more suitable must be assessed on a case-by-case basis. The choice depends heavily on the individual family and financial situation.
