Advantages and disadvantages of selling bare ownership

12 September 2026 · Sky Real Estate

Selling bare ownership can release capital and allow you to stay living in your home. It also reduces the property assets you will inherit or pass on, and the price is usually lower than an unoccupied standard sale. The right decision is the one that fits your age, income and family, not the one that sounds best in a headline.

Real advantages

Liquidity without having to move

You receive capital (or an agreed income) and, if you retain the usufruct, you stay in your home. For many people over 65, this is the core of the transaction: living better now without being uprooted from their neighbourhood, doctors or daily network.

Use protected by a property right

The usufruct is not a favour from the buyer: it is a right documented in a public deed. For as long as it lasts, the bare owner cannot occupy the property as if it were a traditional sale. That difference compared to a poorly negotiated tenancy matters when you look ten or twenty years ahead.

Clearer estate planning

By transferring bare ownership, a decision about the flat is made in advance, which can sometimes prevent worse conflicts among heirs. It is not family magic, but it is a change of framework: the asset is no longer indefinitely "pending".

Multiple payment options

A lump sum, a life annuity or a temporary income allow you to adapt the payment to your financial situation. This is only an advantage if you understand the numbers and risks of each option. An ill-judged income plan may seem comfortable in year one and inadequate by year five.

Drawbacks to face head-on

You receive less than in an unoccupied sale

The buyer is waiting. That time comes at a price. Comparing bare ownership with the "property portal price" without subtracting the usufruct is self-deception. If you are able and willing to sell unoccupied and move, there is usually a higher price margin.

The property is no longer yours in full ownership

You continue to use it, but you no longer have full control over it as before. You cannot simply sell full ownership to a third party. Major decisions depend on what was signed with the bare owner.

Impact on inheritance

Heirs will not receive the flat under the same conditions. If your priority is to leave the property intact, this option is not for you. If your priority is liquidity and quality of life today, it may make sense. Discussing it at home avoids drama later on.

Expenses and fine print

Property tax, service charges, works and insurance must be split in writing. A poor agreement turns a "comfortable" transaction into a source of constant friction with the bare owner.

Tax implications and age profile

Age affects valuation and buyer interest. Without an assessment of your specific case, you cannot know whether the discount is worth it. Do not improvise on personal income tax or capital gains tax based on hearsay either.

Legal framework of rights and obligations under the Civil Code

Comparison of the powers and burdens assigned to the usufructuary and the bare owner.

Regulated aspect	Usufructuary	Bare Owner
Use and enjoyment of the property	Entitled to the use and collection of yields of the asset (art. 467 CC)	Lacks possession and use while the usufruct subsists
Ordinary repairs	Obligation to carry them out at their own expense due to wear and tear from use (art. 500 CC)	Exempt from repairs arising from ordinary use
Extraordinary repairs	Obligation to give urgent notice of their necessity (art. 501 CC)	Responsible for their cost (art. 501 CC)
Annual taxes and charges	Responsible for paying annual taxes and encumbrances (art. 504 CC)	Does not assume ordinary taxes associated with use (art. 504 CC)

Regulated aspect
Use and enjoyment of the property
Usufructuary
Entitled to the use and collection of yields of the asset (art. 467 CC)
Bare Owner
Lacks possession and use while the usufruct subsists
Regulated aspect
Ordinary repairs
Usufructuary
Obligation to carry them out at their own expense due to wear and tear from use (art. 500 CC)
Bare Owner
Exempt from repairs arising from ordinary use
Regulated aspect
Extraordinary repairs
Usufructuary
Obligation to give urgent notice of their necessity (art. 501 CC)
Bare Owner
Responsible for their cost (art. 501 CC)
Regulated aspect
Annual taxes and charges
Usufructuary
Responsible for paying annual taxes and encumbrances (art. 504 CC)
Bare Owner
Does not assume ordinary taxes associated with use (art. 504 CC)

Regulation in accordance with the Spanish Civil Code.

Fuente: BOE: art. 467, 500, 501 y 504 CC

When it usually pays off (and when it does not)

It is worth considering if you need capital, want to stay in your home long-term, and are prepared to transfer bare ownership with sound professional advice.

It is usually not worth it if you can (and want to) sell unoccupied and move, if the usufruct offered to you is brief or weak, or if your actual goal is to maximise the unoccupied market price.

If you are torn between this option and staying on as a tenant after selling full ownership, compare it with sale with guaranteed rent or read the comparison between bare ownership vs guaranteed rent.

How to make an objective decision

Define whether your priority is capital, a monthly income, or both.
Request a valuation of the property and a bare ownership breakdown, avoiding generic percentage tables.
Review the title deed, expenses and impact on heirs.
Compare against an unoccupied sale and guaranteed rent before signing.
Do not sign out of emotional urgency: an extra week spent reviewing is usually far cheaper than a misunderstood clause.

At Sky Real Estate, we advise on bare ownership sales in Madrid, Mallorca and Valencia. When required, Sky Law (European Legal Awards in Real Estate Law 2023-2025) reviews clauses and notary proceedings. For variable calculations (without made-up formulas), see how the price of bare ownership is calculated.

Frequently asked questions

Who is responsible for paying annual property taxes and ordinary running costs?

The Civil Code stipulates that annual taxes and charges encumbering the yields of the property, as well as ordinary repairs arising from use, are the responsibility of the usufructuary.

Fuente: BOE, art. 500 y 504 CC

Who must cover extraordinary works and repairs on the encumbered property?

The Civil Code establishes that extraordinary repairs are at the expense of the bare owner, while the usufructuary is obliged to give urgent notice of their necessity.

Fuente: BOE, art. 501 CC

How is the tax value of a lifetime usufruct calculated?

Royal Legislative Decree 1/1993 specifies that a lifetime usufruct is valued by applying the percentage resulting from subtracting the usufructuary's age from 89, subject to a minimum of 10% and a maximum of 70% of the property's total value.

Fuente: BOE, art. 10.2 RDL 1/1993