Transfer of usufruct

In favor of a third party other than the bare owner

The usufructuary transfers his right.

If it is a life usufruct, the usufruct will continue until the death of the person on whom the usufruct was established (the original usufructuary).

If it is a temporary usufruct for the time remaining from when it was originally established until its extinction

For a fee:

By acts inter vivos

(sale for price)

You will obtain in the IRPF a capital gain or loss for the difference between:

Transmission value

(+) Actual amount of the transfer (or transfer value for the purposes of Inheritance and Gift Tax if the transfer is free of charge).

(–) Expenses and taxes inherent to the transfer paid by the transferor.

Acquisition Value (the acquisition date will be the date of constitution of usufruct in your favor)

(+) Actual amount of the acquisition (or acquisition value for the purposes of Inheritance and Gift Tax if the acquisition was free of charge).

(+) Investments and improvements made to acquired assets.

(+) Expenses and taxes inherent to the acquisition (except interest), paid by the purchaser.

(–) For the years in which the real estate on which the usufruct was established was leased or transferred and for which real estate capital gains were obtained (article 40.1 of the Personal Income Tax Regulations ): amount of tax-deductible amortization, computing in all cases the minimum amortization, regardless of whether it is actually considered an expense. With the limit of the total returns obtained from said lease.

Amortization of the right of usufruct (article 14 of the Personal Income Tax Regulations ):

• Temporary usufruct: acquisition cost ÷ number of years of duration of the same
• Usufruct for life: acquisition cost x 3%

(–) For the years in which the real estate on which the usufruct was established was at the disposal of the usufructuary and not rented or transferred (article 37.1.k) of the Personal Income Tax Law ): The purchase value must be reduced proportionally to the time of use.

• Temporary usufruct: acquisition cost ÷ number of years of duration of the same
• Usufruct for life: acquisition cost x 3%

Abatement coefficients ( DT 9 of the Personal Income Tax Law ): Real rights of enjoyment or use over real estate acquired before December 31, 1994. The date of acquisition must be determined, which will depend on the legal transaction by virtue of which the usufruct was established.

The usufructuary is the one who has the right to use and enjoy and receives the fruits of the property, for which reason the following income is attributed to him in the IRPF :

A. If you lease or transfer the property: Return on real estate property

To calculate the net return on real estate capital, it must be taken into account that the tax-deductible amortization is that of the right of usufruct ([article 23.1.b) of the Personal Income Tax Law and 14.3 of its Regulations] which will be:

• Temporary usufruct: acquisition cost divided by the number of years of duration
• Usufruct for life: 3% of the acquisition cost satisfied

B. If the property is at your disposal and is not rented or transferred: Real estate income allocation

• 2%, in general. This percentage must be applied to the cadastral value of the property that appears on the IBI receipt for the year.

• 1.1% in the following cases:

  1. Properties whose cadastral values have been revised, modified or determined through a general collective valuation procedure, in accordance with cadastral regulations and have come into force in the tax period or within the period of the ten previous tax periods.
  2. Properties that, on the date the tax is due (normally December 31), have no cadastral value or this has not been notified to the owner.

Free of charge:

• By acts inter vivos

• For acts mortis causa

(temporary usufruct)

In favor of the owner's knot

• For a fee

• Free of charge

It determines the consolidation of the domain and the full ownership of the property in the bare owner (See consolidation of the domain)