In short: buying bare ownership in Spain means paying today, at a discount, for a home that someone else keeps the right to use, usually for life. The discount is set by law according to age; what is uncertain is how long you wait.
- A lifetime usufruct is worth 89 minus the age of the usufructuary, as a percentage, with a minimum of 10% and a maximum of 70% (article 26 of the ITP Act).
- With a 75-year-old usufructuary, the bare ownership of a €300,000 flat is worth €258,000.
- There were 1,798 transactions in 2025, led by the Valencia region with 433 (idealista/news).
- The typical seller is 75 years old on average and around 60% are women (Infobae).
The discount on a bare ownership purchase is not negotiated: it is set by a legal formula linked to the age of the person who keeps the right to use the home. What remains open is the timeline, and that is where you find out whether the deal works or turns into a wait with no return.
What bare ownership (nuda propiedad) is
Spanish law allows ownership of a property to be split in two. Bare ownership (nuda propiedad) is legal title to a property without the right to use it or collect its rents; that right, the usufruct (usufructo), is kept by another person, the usufructuary, usually for life. Buying bare ownership means paying a discounted price today on the market value in exchange for waiting, years or decades, until the usufruct ends and the buyer obtains full ownership (pleno dominio). It is a long-term investment with a feature found in no other asset in this guide: the timeline depends on another person's life, not on a contract with a fixed date or on how a market performs.
Interest in this formula is growing as Spain's population ages, and it is explained in part by the lack of liquidity alternatives for older homeowners without a mortgage who want to top up their pension without moving out.
How the discount is calculated from the usufructuary's age
| Age of the usufructuary | Usufruct value % (89 − age, min. 10%, max. 70%) | Bare ownership value % | Example on a €300,000 home |
|---|---|---|---|
| 55 | 34% | 66% | Bare ownership: €198,000 |
| 65 | 24% | 76% | Bare ownership: €228,000 |
| 70 | 19% | 81% | Bare ownership: €243,000 |
| 75 (average seller age, see below) | 14% | 86% | Bare ownership: €258,000 |
| 80 | 10% (legal minimum) | 90% | Bare ownership: €270,000 |
| 85 | 10% (legal minimum) | 90% | Bare ownership: €270,000 |
Our own calculation applying the legal formula in article 26 of the ITP Act (the law on Spanish property transfer tax) to a hypothetical market value of €300,000. It does not include purchase costs (notary, Land Registry, ITP on the bare ownership value, gestoría fees) or any appreciation or depreciation of the property during the wait.
The point that is usually overlooked: the discount shrinks as the usufructuary gets older, because statistically the waiting time is shorter. The best ratio of discount to expected waiting time does not come from buying from the oldest possible usufructuary, but from understanding the real life expectancy in each case, not just the age. A real case reported in the press illustrates the top end of the range well: a 99 m² home in Madrid, owned by a 79-year-old seller, was sold as bare ownership for €160,000, about €1,616/m², far below the average open-market price in Madrid, which at the time ranged between €5,000 and €6,585/m² in the reference areas cited (El Español/Invertia).
The risks that do exist: actuarial, liquidity and costs
Bare ownership is not a risk-free investment. The risk here is not market risk in the classic sense (no vacancies, no unpaid rent), but there is an actuarial risk (the usufructuary may live many more years than estimated, which delays the return on capital), an almost total illiquidity risk (selling a bare ownership before the usufruct ends has a very limited secondary market) and a cost risk that the bare owner still has to bear (extraordinary community charges, IBI local property tax under some agreements, structural works). It is not an investment that is safe because the usufructuary is elderly: it is an investment with a different risk profile, not an absent one.
What exactly you are buying
You buy title to the property registered in the Land Registry (Registro de la Propiedad), with the usufruct also registered as a charge. You cannot live in the home, rent it out or sell it free of that charge while the usufruct is in force. What you can do, subject to the terms of the deed, is sell your bare ownership to a third party (the new buyer inherits the same wait) or wait for the usufruct to end (normally on the death of the usufructuary), at which point you consolidate full ownership at no additional cost. Throughout that period, the bare owner keeps the right to dispose of their share (they can sell it, give it away or leave it in a will), but not the right to use and enjoy the property, which is precisely what the usufructuary holds.
Why the discount exists
The price of bare ownership is the market value of the property with full ownership minus the value of the usufruct, calculated from the usufructuary's age. The reference formula, taken from article 26 of the Spanish Transfer Tax and Stamp Duty Act (Ley del ITP y AJD) and widely used in valuations and notaries' offices, is:
Value of a lifetime usufruct = (89 − age of the usufructuary) % of the property value, with a minimum of 10% (from age 79) and a maximum of 70% (up to age 20) (Legalitas; Oscar Cano Abogados; independently confirmed by Rentarfy, which quotes 89% minus the occupant's age as the formula used by the Spanish tax authority).
Value of the bare ownership = 100% − the usufruct percentage, applied to the market value of the property with full ownership.
It is a tax formula (it comes from the ITP), not a real market valuation of the actuarial risk, but it is the one the vast majority of operators in the sector use as the starting price (Alberto Valiño). In market practice, the final discount applied to the property's market value ranges from 30% to 60% depending on the usufructuary's age and on whether the usufruct is for life or for a fixed term. A usufruct limited to 10-15 years, instead of for life, usually means a bigger discount because the maximum waiting time is capped in advance (Engel & Völkers; Rentarfy).
Who sells (and who buys) bare ownership in Spain, with five years of data
The Spanish bare ownership market is neither new nor a one-off: it has been growing almost without interruption since the drop caused by the pandemic. The historical series, built by cross-referencing the Statistical Yearbook of the Spanish Association of Land Registrars (Colegio de Registradores) with later data reported by idealista/news and El Español/Invertia, shows the following trend:
| Year | Bare ownership transactions | Year-on-year change |
|---|---|---|
| 2020 | n/a | −25.7% (pandemic drop) |
| 2022 | 1,657 | +23.7% (an eight-year high at the time) |
| 2023 | 1,845 | +11.3% |
| 2024 | n/a | Stagnation (no growth reported) |
| 2025 | 1,798 | Practically flat on 2024, after the previous year's slowdown |
Sources: 2020, 2022 and 2023, Colegio de Registradores, 2022 Yearbook and later figures reported by El Español/Invertia; 2025, idealista/news. The 2022-2023 figures (Registradores) and the 2025 figure (idealista, based on the portal's own data) do not use exactly the same counting methodology, so they are quoted separately and are not added together or joined into a single verified continuous series.
By region, the Valencia region (Comunidad Valenciana) leads the national market in 2025 with 433 transactions (24% of the total), followed by Andalusia (340), Madrid (251), Catalonia (179), the Canary Islands (123), Murcia (64) and the Balearic Islands (61) (idealista/news). Looking at cities rather than regions, Madrid, Barcelona, Málaga and Valencia are cited as the four markets with the highest current demand, in that order (El Español/Invertia).
The typical seller (the usufructuary) is 75 years old on average, and around 60% are women, looking for liquidity to top up their pension or meet expenses without leaving the home they have lived in for years (Infobae). Recent press coverage adds nuance: although most sellers are still over 70, there is a growing segment of sellers aged 60 to 70 turning to this formula earlier than usual, in a context where 96.6% of older people in Spain still live in their own home (El Español/Invertia).
The typical buyer is, according to the same sources, mostly a local investor aged 45 to 55 looking to diversify their wealth with an asset that carries little market risk and has a long horizon, although there are also buyers from the financial world who treat bare ownership as one more asset class within a diversified portfolio, not as their only investment (El Español/Invertia; Engel & Völkers). The underlying reason this asset appeals to this particular investor profile is about wealth structure: around 75% of Spanish household wealth is in real estate rather than liquid financial assets, according to economist Gonzalo Bernardos, quoted in the same report. Bare ownership offers exposure to that same type of asset with a much smaller initial outlay than buying with full ownership.
These are usually homes in central or high-demand locations, which in practice is good news for the investor who buys the bare ownership: they are the properties with the best future liquidity when the time comes to sell with full ownership.
The seller can be paid as a lump sum or as a lifetime annuity (renta vitalicia, a regular payment for life). The second option is common because, if the seller reinvests the capital gain in a lifetime annuity, they can benefit from a 100% tax exemption on that gain, provided certain requirements are met (65ymás). For the investor, buying with a lifetime annuity instead of a lump sum changes the cash-flow profile: instead of paying the whole discounted price up front, you spread it over monthly payments while the usufruct remains in force.
How bare ownership is taxed when you buy, hold and sell
On purchase: ITP (Spanish property transfer tax, or VAT if it is the first transfer of a new-build) is calculated on the value of the bare ownership, not on the full value of the property: since that value is already lower because of the usufruct discount, the tax base and the tax payable are lower too (Kalma; Mayor Solución).
While you hold it: holding bare ownership without the right to use the property does not generate imputed income under the bare owner's IRPF (Spanish personal income tax), because they do not have use of the asset (Taxdown). If the property is not your main home covered by other exemptions, you do need to declare it for Wealth Tax (Impuesto sobre el Patrimonio) if you exceed the relevant regional threshold. Ordinary community fees are normally paid by the usufructuary (who enjoys the property), while structural and extraordinary works usually fall on the bare owner, but this split depends on what the deed says and is not automatic by law in every case, so it is worth checking before signing.
When the usufruct ends (consolidation of ownership): when the usufructuary dies and the bare owner acquires full ownership at no additional cost, that consolidation is taxed under Inheritance Tax (Impuesto sobre Sucesiones), not IRPF or ITP again, on the value of the usufruct that ends, at the rate applicable in the autonomous community where the bare owner is resident (Ebrat Abogados). This is where the net result of the investment varies most from region to region. Reental does not provide individual tax advice: consult your tax adviser before investing, especially to estimate this tax in your specific region and, if you are not resident in Spain, how the rules apply to you.
On a later sale with full ownership: it is taxed as a capital gain under IRPF on the difference between the sale price and the sum of what you paid for the bare ownership plus the tax value of the consolidated usufruct (Gestoría Fullana).
The numbers of a purchase: €300,000 and a 75-year-old usufructuary
| Item | Hypothetical amount |
|---|---|
| Market value of the property with full ownership | €300,000 |
| Age of the usufructuary at the time of purchase | 75 |
| Usufruct % applied ((89−75) = 14%) | 14% → €42,000 |
| Purchase price of the bare ownership (86%) | €258,000 |
| Estimated purchase costs (ITP transfer tax ~6-10% depending on the region on €258,000, notary, Land Registry) | ~€20,000 |
| Total investment | ~€278,000 |
| Remaining statistical life expectancy at 75 (general reference, not individual) | Approx. 12-14 years |
| Estimated full-ownership value of the property in 13 years (hypothetical appreciation of 3%/year, within the 3-5% range quoted by industry sources for housing in Spain) | ~€440,000 |
| Hypothetical gross gain if sold after full ownership is consolidated | ~€162,000 (before taxes on consolidation and sale) |
Hypothetical example, not a documented real case. The 3% annual appreciation applied is the low end of the 3-5% range quoted by Rentarfy for long-term housing in Spain: it is a commercial industry source and is used here as a reference range, not as independently verified data. It does not include Inheritance Tax on consolidation, IRPF on the final sale, maintenance costs over the 13 years (some borne by the bare owner depending on the agreement), or the scenario (also real and frequent) in which the usufructuary lives longer than estimated, which lowers the investor's annualised IRR without reducing the final nominal gain.
Bare ownership compared with other strategies in this guide
- Compared with buying an occupied flat (dedicated article): bare ownership has an entirely clear legal framework with no conflict (the usufructuary's right is recognised in a deed, it is not an illegal occupation), but it shares with the occupied flat the fact that you cannot use or rent out the property for an indefinite period. It is timeline risk without conflict, versus conflict risk with an equally uncertain timeline.
- Compared with house flipping (dedicated article): these are almost opposite strategies in time horizon: flipping is measured in months, bare ownership in years or decades.
- Compared with Reental's tokenized fractional investment: the core difference is liquidity. Bare ownership ties up capital for as long as the usufruct lasts, with no option of a partial sale and no liquid secondary market. Reental lets you sell tokenized fractions on the secondary market 24/7 or use Reenlever to obtain liquidity without selling, something bare ownership cannot offer by its very legal nature.
What to check before signing a bare ownership deal
Of the alternative real estate investments covered in this guide, bare ownership is the one that requires the longest time horizon: the discount is real and can be calculated with a known legal formula, the market has been growing (with ups and downs) since 2020 to around 1,800-1,850 transactions a year, and the typical buyer is around 50 and looking to diversify their wealth, not to speculate in the short term. But the return depends on a variable nobody controls: the length of a human life. If what you want is a wait of years or decades with a generational discount known in advance, it is a solid and legally clear option. If what you want is real estate exposure with the ability to exit when you need to, compare it first with buying an occupied flat (a different discount, with an equally uncertain timeline but of a different nature) or with a liquid alternative such as Reental.
Frequently asked questions
How much can you earn by investing in bare ownership?
It depends directly on two variables: the initial discount (a function of the usufructuary's age) and how many years it takes for the usufruct to end. There is no average market return for this type of investment in Spain verified independently by a consultancy or official source. Several platforms in the sector itself (Rentarfy and other bare ownership platforms cited in this guide) talk of cumulative returns of between 5% and 10% a year, or 7-10% in some specific cases, but these are sources with a direct commercial interest in selling this product: they are quoted here with that explicit caveat, not as an independent benchmark. In short, there is no reliable independent return figure yet.
What happens if the usufructuary lives much longer than expected?
The bare owner still cannot use or freely sell the property until the usufruct ends. There is no financial compensation for that extra wait: it is the actuarial risk inherent in this investment, and you must accept it as a possibility from day one.
Can I sell my bare ownership before the usufruct ends?
Yes, it is legally possible, but the secondary market for bare ownerships already sold is much smaller than the primary market (buying directly from the usufructuary), which usually means fewer potential buyers and a further discount on top of the one already applied.
Is buying bare ownership the same as a reverse mortgage?
No. In a reverse mortgage the owner takes out a loan secured on their home and remains the owner; when selling the bare ownership, the owner stops being the owner from day one and keeps only the right of use (the usufruct). They are different products with different tax and legal implications.
Who pays community fees and IBI while the usufruct lasts?
It depends on what the deed says, but most commonly the ordinary community fees are paid by the usufructuary (who lives in the home and benefits from those services) and structural or extraordinary works are paid by the bare owner. The same goes for IBI, the annual local property tax. It is not an automatic rule by law: review it line by line before signing, because it directly changes the real net return on the deal.
If the appeal of bare ownership is buying at a discount with real property exposure, but a horizon of years or decades and total illiquidity do not suit your profile, at Reental we turn the same type of asset into fractional investment with a secondary market: discover the active projects at Reental.
Related articles
- Buying an occupied property in Spain
- House flipping in Spain: buying, renovating and selling
- Build to rent and development from scratch
- Holiday let investment in Spain
- Returns and legal risks of investing in NPLs
Legal notice: This article is for information and educational purposes only. It does not constitute financial, tax or legal advice, nor a personalised investment recommendation. All investment involves risk, including the possible partial or total loss of the capital invested. Past performance does not guarantee future results. Before making any investment decision, consider your personal situation, objectives, time horizon and risk tolerance and, if necessary, consult a qualified professional.
AI transparency: This content was produced with the assistance of artificial intelligence tools and subsequently reviewed, verified and edited under human editorial responsibility.
Data and sources: idealista/news, Infobae, 65ymás, Legalitas, Oscar Cano Abogados, Alberto Valiño, Taxdown, Kalma (somoskalma.com), Mayor Solución, Ebrat Abogados, Gestoría Fullana, Spanish Tax Agency (sede.agenciatributaria.gob.es), Colegio de Registradores (2022 Statistical Yearbook of Real Estate Registrations), El Español/Invertia, Rentarfy, Engel & Völkers, SeniorExpert. The worked example and the discount-by-age table are our own calculations, applying the legal formula in article 26 of the ITP Act; they are not a real market quote. The return ranges (5-10% a year) cited in the FAQ come from commercial platforms in the sector and are explicitly flagged as such, not as independently verified data. Figures current as of September 2026.
