Bare ownership (nuda propiedad) is a type of property sale with special conditions, in which the buyer acquires the legal title to the property, but the seller retains the right to live in it as a usufructuaryAn usufruct is a right granted to a person (called the usufructuary or usufructuario in Spanish) to live in and benefit from a property that belongs to another person (the “bare owner”). The most comm... More. The most common scenario involves an elderly person selling the bare ownership of their home while keeping a lifetime right of use (usufructAn usufruct is a right granted to a person (called the usufructuary or usufructuario in Spanish) to live in and benefit from a property that belongs to another person (the “bare owner”). The most comm... More), allowing them to access the liquidity without having to leave the property.
It is considered an attractive investment option, as the price of bare ownership is lower than full market value in exchange for the buyer having to wait before taking full possession. The price is calculated using official tax office tables that assess the value of the usufructAn usufruct is a right granted to a person (called the usufructuary or usufructuario in Spanish) to live in and benefit from a property that belongs to another person (the “bare owner”). The most comm... More based on the seller’s age—the older the person, the smaller the discount.
In some cases it can be agreed to sell the bare ownership for a fixed period rather than for life, although this is less common.
