Nuda propiedad is ownership of a property without the right to use it: use stays with the usufructuary. It is a common way to buy below market, but it only works if you understand who lives there, for how long and what happens next.
Full ownership splits into two rights: nuda propiedad (the power to sell, mortgage or transfer) and usufruct (the right to use, rent out and take the income). A buyer of nuda propiedad cannot move in or rent the property while the usufruct is alive.
Usufruct can be lifelong (until the usufructuary dies) or fixed-term. In a normal sale, it is usually a lifelong usufruct in favour of an elderly person selling the bare ownership to raise cash.
There is no legal percentage. In practice the bare-ownership price is the market value minus the value of the usufruct, which in Spain is estimated from the usufructuary's age: for a lifelong usufruct it is commonly calculated as 89 minus the age, with a minimum of 10% of the property value.
At advanced ages the discount can be small; at younger ages it can exceed 40–50%. On top of that comes a liquidity discount: the buyer cannot use the home for years.
The purchase pays transfer tax (ITP, or VAT plus stamp duty for new build) on the bare-ownership price. The usufructuary keeps paying IBI and ordinary maintenance; major repairs fall on the bare owner.
When the usufruct ends, full ownership consolidates in the bare owner. That consolidation can trigger tax (inheritance or gift tax if it comes from an inheritance or donation) and municipal capital gains tax on a later sale.
The first risk is longevity: if the usufructuary lives longer than expected, the buyer waits more years without use or vacant possession. The second is the condition of the property: the usufructuary may not maintain it as you expect.
Before signing, check the Land Registry extract, charges, mortgages, the usufructuary's age and general situation, and put in writing who pays what. The deal closes before a notary with a public deed and Land Registry registration.
It makes sense if you want long-term return, not a home now: you buy at a discount, wait and consolidate. Also for investors with a 10–20 year horizon in a stable-demand area.
We do not recommend it if you need a mortgage: few banks lend on bare ownership and terms are tougher. Nor if your goal is to rent it out immediately.
We review the case, calculate the discount and explain taxes and timing before any signature.
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