SOURCE: EXPANSION

MAY 22, 2024

Bare ownership is the right that a person has to own something, such as a home, but does not have the right to use or enjoy it.

As explained by Adevinta, as long as the right of the usufructuary exists, nothing related to the property will have to be declared in the income tax return because he is not the owner of the real right of the property. This is because he cannot obtain profits, dividends or income from the home he owns.

Therefore, properties in bare ownership do not generate income for the owners. That is, they do not use them nor can they rent them out. They should not be declared in the personal income tax.

• This affects the income tax return. The owner does not have to do anything. However, the usufructuary agrees to receive income in exchange for bare ownership, so he must declare it in his tax return, taking into account the exceptions that exist for senior citizens.

• Sale of a property with usufruct. In this case, the owner must pay the taxes related to the property: ITP, inheritance tax, levies, community fees. In the case of IBI, an agreement can be reached.

• Inheritance of these properties. In the case of inheritances, the value of the inherited property must be calculated and the value of the usufruct must be subtracted. In this way, only taxes on the rest will have to be paid.