For a leased hereditary building rights property a larger ground rent (Erbbauzins) prepayment is being considered. An assumed discount can reduce the nominal total sum. For the financial plan, however, today’s cash outflow, the future commitment and the tax timing remain separate questions.
Do not assume a general possibility of redemption
The following comparison invents its conditions entirely. It asserts no entitlement to consolidate ground rent (Erbbauzins) early or thereby to exclude later adjustments. A real offer must clearly regulate the period covered, scope, further payments and consequences of an early termination.
For the tax side we additionally assume that the advice has already classified the specific amount as an expense for a grant of use of more than five years. § 11 Absatz 2 Satz 3 EStG generally provides for an even distribution over the prepayment period. [VORAUS] Whether this classification applies in the actual contract and which other rules apply is not decided here.
Calculate the assumed discount
In the example case ten years of €2.400 each would be payable at the beginning of the year: a total of €24.000. Alternatively a final prepayment of €21.000 today is intended to replace exactly these payments. Other burdens remain unaffected. The nominal difference is €3.000.
This is not a complete profitability calculation. The annual payments are made later, whereas the prepayment immediately ties up money. Time value, alternative use, default or contractual risks and individual taxes are not yet reflected in the €3.000.
Do not confuse money and tax expense
Under the expressly assumed tax distribution rule €2.100 would be allocated to each of the ten years. In the private cash plan there are nevertheless €21.000 of disbursement today. A line showing ten times €2.100 expense does not finance this disbursement and also does not represent an annual reimbursement of €2.100.
If, after the prepayment, too little free funds remain for other committed expenses, that shortfall needs its own solution. Any new borrowing required for this, with its costs, can materially change the original comparison.
Record the decision in three outcomes
First, have the legally precisely settled payment scope confirmed. Second, compare present and future cash outflows including any needed financing. Third, clarify the concrete tax allocation with the adviser.
Only together do these outcomes show whether a discount might fit your own plans. The lower nominal total alone is neither a certain saving after all costs nor a reason to surrender available liquidity without examination.