The legal framework of usufruct and cohabitation

The Spanish Civil Code protects the full capacity of the usufructuary to manage the daily use of the property. As established by Article 480 of the Civil Code, the usufructuary has the power to use the usufructed property themselves, lease it to third parties or transfer its use free of charge. Consequently, the decision regarding who resides on the property rests exclusively with the holder of this real right.

Usufruct is frequently confused with rights of use and habitation. The latter are highly personal and non-transferable rights, regulated more strictly, where occupation is usually limited to the needs of the beneficiary and their immediate family. Conversely, under an ordinary usufruct, when the usufructuary decides to live with other people, they are exercising a power inherent to the legitimate possession of the property.

Who can live with the usufructuary?

The possibilities for occupying the property under usufruct are very broad and require no justification whatsoever to the bare owner. The most common cohabitation scenarios include the following:

• Spouse or cohabiting partner: The usufructuary can share their home with their partner at any time, without the owner being able to object to such cohabitation.
• Children and other relatives: Descendants, ascendants and collateral relatives alike can establish their residence in the usufructed property.
• Carers and care staff: If the usufructuary requires care for reasons of age or health, it is entirely valid for healthcare or domestic staff to live on the property.
• Guests granted free use: Close friends or relatives are permitted to stay through loan for use agreements (comodato) or simple permission.
• Tenants: The usufruct holder can let individual rooms or the entire property to third parties, receiving the full rental income without having to share it with the bare owner.

Legal limits and obligations during cohabitation

Although the right of enjoyment is broad, the law sets certain limits aimed at safeguarding the ownership of the bare owner and the long-term value of the property:

Firstly, the obligation set out in Article 467 of the Civil Code applies, requiring the form and substance of the property to be preserved. The presence of multiple cohabitants does not justify carrying out unauthorised structural works or alterations to the original layout of the property.

Secondly, the usufructuary must act with reasonable diligence in maintaining the property. Furthermore, ordinary expenses relating to the use of the dwelling, such as utility bills (electricity, water and gas), ordinary community charges and Property Tax (IBI), remain the responsibility of the usufructuary, regardless of the number of people residing in the property.

For their part, the bare owner is responsible for extraordinary assessments and structural repairs. In contexts where acquiring or transferring properties encumbered with usufruct requires financial analysis, turning to mortgage credit intermediaries facilitates finding financing tailored to shared ownership between bare ownership and usufruct.

Cohabitation in VPO properties

If the property encumbered by the usufruct holds the classification of VPO (Subsidised Housing) in the Comunidad de Madrid, regional regulations on protected housing must be observed.

In the Comunidad de Madrid, regulations require protected housing to be used as a primary and permanent residence. When a usufructuary decides to live with third parties in a VPO property within this region, they must ensure that all residents meet municipal registration (empadronamiento) requirements and that public authority occupancy or income thresholds are not exceeded. Breach of VPO usage conditions in the Comunidad de Madrid may lead to administrative disciplinary proceedings, although it does not automatically invalidate the civil validity of the usufruct.

Frequently asked questions about cohabitation under usufruct

Can the bare owner forbid a person from entering the property?

No. The bare owner lacks the right of use and possession while the usufruct is active. Therefore, they have no authority to veto the entry or residence of any person authorised by the usufructuary.

What happens to cohabitants when the usufructuary dies?

Unless a successive or joint usufruct has been formally established, life usufruct is extinguished upon the death of the holder. At that moment, full ownership is consolidated in the bare owner and the cohabitants' right of occupation lapses. These individuals must vacate the property unless they agree a new tenancy or transfer agreement with the ultimate owner.

What happens if there are several usufructuaries and one wants to bring in a third party?

When usufruct ownership is shared by several people (joint usufruct), the use of the property must be regulated by mutual agreement under joint ownership rules. No single usufructuary can deprive the others of their corresponding share of use by bringing in new cohabitants without appropriate consensus.

Recommendations for conflict-free cohabitation

To ensure peaceful coexistence between the usufructuary's powers and the bare owner's expectations, it is advisable to formalise any room letting or transfer of use to third parties in writing. Maintaining open communication and paying utility bills and maintenance fees on time prevents legal disputes and protects the rights of all parties involved.