The Federal Fiscal Court (BFH) confirms an interest rate of 5.5% for the valuation of lifetime benefits and services under Section 14 of the Property Valuation Act (BewG)

In its ruling of January 14, 2026 (II R 35/23), the Federal Fiscal Court (BFH) declared the flat interest rate of 5.5% for the valuation of lifetime uses and benefits under Section 14(1) of the Property Valuation Act (BewG) to be constitutional; the Federal Constitutional Court’s (BVerfG) case law on full interest is not applicable here.

This article discusses the decision and highlights the sale for full consideration as an alternative structuring option in which § 14 of the Property Valuation Act (BewG) does not apply and the valuation can be based on a market-based interest rate.