Usufruct is a real right that grants the use and enjoyment of another's property. In this guide, we explain everything you need to know in detail. Don't miss any details!
It represents the transfer of certain legal rights to a property. The definition and an example are explained here.
It is the right to enjoy the property of another with the obligation to preserve its form and substance, as provided for by Article 467 of the Civil Code.
A father grants his son the right to live in his home while he is out of the country. Thus, his son may use the house, rent it out, or assign the right to another sibling to live there.
This legal condition divides the rights to a property. Let's take a look:
The occupant (also known as the beneficiary or usufructuary) resides in the home without issue. They enjoy the building as if they were the actual owner, although they do not become the owner of the property.
The person residing in the home has the legal authority to lease the property to third parties. The rental income also belongs to them.
They cannot sell the property. Furthermore, the use of the space must not alter the structure or destroy the value of the asset and its contents.
The full ownership is divided into two separate legal components.
The beneficiary enjoys the natural and civil fruits of the property. Furthermore, they may transfer this right of enjoyment to another person free of charge.
The owner retains title to the property. This investor may sell their bare ownership right. They do not, however, have the right to possess or enjoy the property.
This occurs upon the expiration of the right of use. The owner acquires full title to the property.
Civil legislation establishes various methods for establishing this condition. These include:
This arrangement lasts for the duration of the beneficiary's life. The death of the occupant extinguishes the right automatically.
The agreement establishes a specific duration from the outset. The expiration of the set date dissolves the right.
The law imposes the legal modality in cases of forced heirship. Voluntary agreements arise from contracts between living persons. A will reflects the final wishes of the deceased regarding their real estate assets.
The regulations allow applying this structure to tangible assets and financial rights. Company shares and investment funds fall into this category.
The law precisely regulates the privileges and duties of the current occupant of the property, as explained below:
As a beneficiary, it is possible to use, lease, and receive income from that service.
The user must maintain the building with due diligence to prevent its deterioration.
As the occupant, you must pay ordinary expenses derived from the use of the property.
The beneficiary respects structural limits without diminishing the value of the real estate asset.
There are certain rights regarding the bare owner that you should consider. Please note:
The titleholder may sell or mortgage the bare ownership. The owner may carry out work that does not harm the beneficiary. However, they may not occupy or enjoy the property.
The owner finances structural work on the building. Community assessments for facade improvements are their responsibility.
It is legal for the owner to sell the primary residence to a third party. In fact, the market purchases these assets at a discount due to the waiting period.
To establish this legal right, both parties must be included in a legal contract.
Both parties sign a temporary transfer agreement. Consequently, one acquires the right of use while the other retains ownership.
The testator outlines their wishes regarding succession in a notarized document. The text assigns the right to occupy the property to the designated beneficiary.
Parents transfer property ownership to their descendants free of charge, while retaining the right to reside in the home for life.
The notary certifies the agreement through an official public document. This process provides legal security against future buyers.
Civil law protects the financial stability of the surviving spouse through mandatory allocations.
The law guarantees the survivor the right to use a portion of the estate. This share varies depending on the presence of children or ascendants.
The descendants acquire ownership of the assets, but without the right to use them.
The right of use terminates upon the beneficiary's death. Consequently, the original owner regains full ownership with 100% of their rights restored.
The economic valuation of these rights requires the application of specific tax rules for tax calculation purposes.
The value is determined by subtracting the beneficiary's age from 89. The result represents the percentage applicable to the total value of the property, with 70% being the maximum and 10% the minimum.
The valuation assigns 2% for each year of the contract's duration. The maximum permitted percentage is 70% of the total value of the asset.
Follow this example for a 70-year-old usufructuary whose property is worth €100,000:
These steps allow you to calculate the value of the usufruct.
The calculation is performed by subtracting the value of the right of use from the total value of the property. In the previous example, the result is €81,000.
Local tax laws define the taxpayer for each fee. Let's examine them:
The property tax is the responsibility of the usufructuary by mandate of the local treasury laws.
The beneficiary is responsible for covering ordinary expenses for the homeowners' association, as well as water, electricity, and gas bills. This also applies to minor repairs.
The beneficiary settles the inheritance tax based on the calculated value of the right. The bare owner is taxed for their corresponding share.
The termination of this legal condition restores full freedom to the property owner. These are the causes:
The death of the usufructuary automatically extinguishes the right of use and enjoyment.
Once the time set in temporary contracts is completed, the right of use is dissolved.
The beneficiary may voluntarily renounce their right. However, consolidation occurs when the same person acquires both titles. And the destruction of the building extinguishes the contract.
It is the right to use another person's home and receive its economic benefits.
Yes, the beneficiary has the legal authority to lease the property to third parties.
No, the resident lacks the authority to sell the real estate.
Payment of this municipal tax is the responsibility of the usufructuary according to tax regulations.
Yes, the holder may voluntarily relinquish their right at any time.
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Calle Pilar Mateo
Funded
100%
1.167.964,69€
Target
1.167.964,69€
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