Selling a home subject to usufruct: options, signatures and taxes

What it means for a home to be subject to usufruct

In Spain, full ownership can be divided into two rights. The Spanish Tax Agency explains that usufruct allows a person to use, enjoy and benefit from another person's property under Articles 467 to 522 of the Civil Code, whereas bare ownership is title with the power to dispose of the property, but without its use or enjoyment while the usufruct remains in force.

Put simply, the usufructuary is the person who lives in the house or rents it out and receives its income. The bare owner is the underlying owner, who cannot use it until the usufruct ends. This is common when a parent leaves usufruct to their spouse and bare ownership to their children, or when someone gives their house to their children while retaining the right to live in it.

Before considering the price, establish from your deed or will who holds each right, whether the usufruct is for life or a fixed term, and whether it has special conditions. A nota simple from the Land Registry shows ownership and charges. If you are buying or selling locally, our guide explains the nota simple and the Cadastre on the Costa Blanca.

The three ways to sell a home subject to usufruct

The answer changes depending on who wants to sell and what they want to transfer to the buyer.

1. Both right-holders sell full ownership

This is the option most like an ordinary sale. Both the usufructuary and the bare owner must participate in a sale of full ownership, and neither can unilaterally transfer the other's right. The buyer acquires the home free of usufruct and can live in it from handover of the keys.

It is also the easiest to market: buyers, particularly international buyers, seek a home they can use or rent out without waiting. The price is negotiated on the market value of the complete home and then divided between the two right-holders according to the value of each right.

2. Selling bare ownership only

The bare owner can sell their right without asking the usufructuary's permission, as explained by a law firm specialising in property law, but the buyer must respect the usufruct and cannot occupy or enjoy the home until it ends.

The Spanish Tax Agency clarifies that the buyer of bare ownership acquires the right to enjoy the property fully when the usufruct ends. This suits a very specific buyer: someone investing for the long term who accepts a wait. That is why the price is substantially below that of a home with unrestricted ownership, and the pool of buyers is smaller.

A common variation is for the full owner to sell bare ownership while reserving lifetime usufruct. They continue living in the house and receive part of its value now.

3. Selling usufruct only

The usufructuary can transfer their right, but not ownership of the property. According to a notarial explanation, the buyer obtains use and enjoyment under the conditions and for the duration of the transferred right. A lifetime usufruct does not become a right lasting for the buyer's lifetime: it ends on the death of the original usufructuary.

A particular case is the usufructuary transferring their right to the bare owner. The two rights then come together and the bare owner consolidates full ownership. This is a practical solution when a family wants the house to have one owner before selling full ownership.

Who must sign and what happens if only one party wants to sell

The practical rule is simple: each right-holder disposes only of what belongs to them. If only one party wants to sell, they can transfer their own right, but cannot force the other to sell or create a sale of full ownership on their own. The buyer therefore receives only usufruct or bare ownership.

This directly affects the price and time needed to sell. A home whose full ownership is available sells more quickly and at a better value. If the right-holders disagree, negotiating before advertising is usually most useful: the bare owner may offer compensation for the usufruct, or the usufructuary may prefer an agreement that provides them with money now.

Cases with several bare owners, such as siblings, also need to be anticipated. Selling full ownership then requires bringing all the right-holders together. Before looking for a buyer, clarify how the share of the price attributable to bare ownership will be divided between them.

What happens when the usufructuary dies

If the usufruct is for life and is not successive, it ends on the usufructuary's death and the bare owner automatically consolidates full ownership under Article 513.1 of the Civil Code. To record this at the Land Registry, the death certificate and an application may be submitted.

If this is your situation and you want to sell, the sequence is to register consolidation of ownership, check that ownership and charges have been updated, and only then set the price of the unrestricted home. Avoid advertising a house whose registry entry still shows an expired usufruct, because this raises doubts for the buyer and their lawyer.

How usufruct is valued and the price divided

For a lifetime usufruct, the tax valuation is generally 89 minus the usufructuary's age, with a minimum of 10% and a maximum of 70%. Bare ownership is worth the difference from the total value. Below age 20, usufruct is worth 70%, falling by one percentage point for each additional year.

Examples using a €200,000 home, solely to illustrate the formula:

When full ownership is sold, this proportion is a natural reference for dividing the price between the two right-holders. If both agree, they can arrange a different division, but it should be recorded in writing and a tax adviser should confirm the consequences. Remember that this is the tax valuation. Demand determines the actual market price of bare ownership, and buyers usually require a larger discount when they must wait.

Fixed-term usufruct is valued differently, according to the agreed duration. In that case, ask your adviser or the regional tax authority to calculate it.

Taxes that may arise

This is where most mistakes occur, so each case should be considered separately.

If you sell bare ownership and retain usufruct. The Spanish Tax Agency states that the buyer pays ITP or ISD depending on whether the transfer is for consideration or a gift, while the seller pays IRPF on the gain or loss relating to the transferred portion. Retaining usufruct does not in itself create a separate taxable event.

If the usufructuary transfers their right to the bare owner. The Spanish Tax Agency warns that taxation depends on whether the transaction is for consideration or gratuitous, and on the instrument that created the usufruct. This is different from termination on death.

Exemption for people over 65. If ownership had already been divided before the sale, the IRPF exemption for people over 65 applies to neither the bare owner nor the usufructuary. The same source notes that distinguishing between previously divided ownership and a sale of bare ownership with reserved usufruct may affect access to tax benefits, so the origin and sequence of the rights matter. Before relying on an exemption, confirm it with a tax adviser and the Spanish Tax Agency's current rules.

Municipal plusvalía. This is a local tax whose amount depends on the cadastral value of the land, the elapsed period and the municipal ordinance. Ask the council where the property is located which method applies.

If you are non-resident, your tax adviser must also confirm how these rules apply to your circumstances. Do not assume they apply unchanged.

Steps for a safe sale

1. Gather the documents. The deed or will creating the usufruct, an up-to-date nota simple, recent IBI receipts and the owners' association certificate. Before signing, review the deed, ownership, registered charges, and the duration and conditions of the usufruct.
2. Decide what is being sold. Full ownership, bare ownership only or usufruct only. Speak to the other party before making anything public.
3. Calculate the division and taxes. Use the valuation formula as a reference and ask a tax adviser for a calculation using your details.
4. Set the asking price. A realistic property valuation, with community charges up to date, avoids later price reductions. Our guide to community fees on the Costa Blanca explains what buyers usually check.
5. Sign before a notary. It is advisable to formalise the transaction in a public deed and register bare ownership and usufruct at the Land Registry.
6. Pay the taxes on time and keep the receipts for your tax return.

How to prepare the home for the buyer

When full ownership is sold, the transaction closely resembles an ordinary resale, and the buyer will check the same things as with any other house. The clearer everything is, the less time the sale takes.

• Organised ownership documents. The buyer and their lawyer will want to see that both right-holders sign and that the usufruct ends in the same deed.
• An inventory if sold furnished. Avoid disagreements on handover day. See our guide to what is included in a furnished Costa Blanca home.
• Clearly identified ancillary spaces. If there is a garage or storage room, check that it appears in the deed and the registry; our guide explains what to check for parking and storage.
• Utilities up to date. Electricity and water contracts in the correct name make transfer easier; see electricity checks when buying a home.

On Costa Blanca South, many buyers are from abroad and unfamiliar with usufruct. Clearly explaining what they receive, and providing complete documentation, reduces uncertainty and shortens the path to signing.

Our perspective

In practice, most sales involving usufruct become complicated because of missing agreement and paperwork, rather than the law. When the right-holders sit down with the deed and a nota simple, a solution satisfactory to both almost always emerges. Where possible, we recommend selling full ownership. This attracts the most buyers and lets each right-holder receive their share clearly. We work with a focused selection of properties with confirmed prices and availability, and apply the same order to sales: documents first, a realistic price next. We organise the documentation, coordinate with the legal and tax professionals involved and give personal attention to each party, including international buyers who need support at every stage. the editorial team

Selling with Verdi Estate on Costa Blanca South

If your home is in Torrevieja, Orihuela, San Miguel de Salinas or Ciudad Quesada, Verdi Estate supports you throughout the process: we review the documents with you, help structure the transaction alongside your legal and tax advisers, and present the home to buyers looking in the area. Find out how to sell your home on Costa Blanca South with us.

If you are looking to buy, browse our selection of resale homes or our guide to buying a home in Spain and the procedures involved. If you plan to renovate, our guide to buying to renovate on the Costa Blanca may help.