Sale of bare ownership: steps, requirements, and taxation

The sale of naked property has become an increasingly popular tool for retirees looking to generate additional income to supplement their pensions. By dismantling the property and retaining the right to use it (whether permanent or not), the seller gains liquidity without losing the ability to enjoy their real estate.

If you're thinking about taking that step, we'll tell you what a nude sale is, how to implement it, what the requirements and benefits are, and what taxes are associated with the transaction.

What is the sale of bare ownership?

The sale of bare ownership of a house involves the transfer, for a fee, of one of the parts into which full ownership of the real estate is divided:

• Bare ownership: ownership of an object with restrictions on the ability to possess and enjoy it.
• Use: the right to possess, use and enjoy an object.

Many people wonder if it is possible to sell a nude property without giving up use, and the answer is affirmative. In fact, in recent years, the alternative of selling naked home property has become increasingly popular as a way for owners over the age of 65 to gain liquidity through the sale of their real estate without ceasing to reside in it for the rest of their lives.

Ways to sell bare ownership

If you are thinking about selling your nude property and retaining the right to use it, you should know that there are various ways to do this, and it is important to choose and negotiate what will be in your best interest.

The most common practice is the sale of bare ownership with lifetime usufruct, as this allows you to continue living in your property (or rent it out or transfer it, if you wish) for the rest of your life.

• One-time payment:the seller receives the full amount at the beginning of the transaction.
• Lifetime rent:The seller receives a lifetime rent.
• Temporary rental fee:The seller receives rent for a specified period.

Requirements for the sale of nude property

Any individual can sell bare ownership of real estate, provided that they are indeed the owner of that real right. However, there are certain requirements to take advantage of tax benefits related to bare ownership under personal income tax.

• Be over 65 years old.
• Sale of primary residence.

How do you sell the exposed property of a home?

The steps for selling bare property are not significantly different from those for any real estate transaction.

After signing, which must be done in front of a notary, registration in the Property Registry is required so that the decision is fully valid before third parties. Payment of the relevant taxes will also be required.

If you want to simplify the process, it's always better to consult with experts who can provide you with advice. There are also companies that buy vacant properties without the need to find an interested party, as they usually take care of connecting both sides and closing the deal, though for a fee.

How is the value of bare ownership calculated?

Calculating the value of the exposed property will depend on a variety of factors, including the market value of the property, the type of use, and the type of payment.

How is the sale of naked real estate taxed?

The sale of bare property is subject to personal income tax depending on the income received. The buyer is also required to pay a vehicle tax.

How are expenses allocated when nude property is sold?

Expenses related to the sale of bare property are usually agreed upon by the parties and may include costs for maintenance and repairs.