Buying property in bare ownership

The purchase of real estate property in bare ownership allows to build a heritage at lower cost, anticipate its income in retirement, optimize tax or prepare its transmission.

The principle of buying property in bare ownership

You buy the bare ownership of an apartment whose usufruct is acquired by a third party for a period between 10 and 20 years depending on the market programs.

The advantages of buying property in bare ownership

An attractive price:

Buying property in bare ownership allows you to build a property portfolio at lower costs, a discount on the purchase price of around 40% compared to the same property acquired outright.

The absence of burden on the owner of property without usufruct :

The usufructuary is responsible for giving the property rental and ensures, in principle, maintenance of the building (private and common). Attention, major repairs are the responsibility of the bare owner (Article 605 and 606 of the French Civil Code).

Full ownership without charge or tax on exit:

After the dismemberment period, you find the full ownership of the property without a euro more to pay.

Tax reductions its land revenues:

During the entire period of the dismemberment, the operation has no impact in terms of income tax to the extent that you do not cash rents residential property leased. In the case of acquisition on credit, loan interest is deductible from other property income provided that the usufructuary is a social lessor or a lessor liable for income tax.

Reduce the solidarity wealth tax base:

The usufructuary must declare the property as a taxable estate, provided it is subject to the solidarity wealth tax. It is then liable to wealth tax on the full ownership of the property. Throughout the period of dismantling, the bare owner does not have to be taken into account to assess its taxable assets to the solidarity wealth tax. On the other hand, the debts related to bare ownership can no longer be deducted from the taxable assets at the solidarity wealth tax since the 2013 amended budget law (article 885 G quater CGI).

Submit to minimal tax:

If you want to transmit to your heirs, to the extent that only the bare ownership be sent to them, the gift tax will be calculated only on the value of the latter.

Frequently asked questions