Transfer of usufruct
|Ways of transmission||Holder of the usufruct right||Person who acquires it (usufructuary)|
In favor of a third party other than the bare owner
The usufructuary transfers his right.
If it is a lifetime usufruct, the usufruct will subsist until the death of the person over 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
By acts inter vivos
(sale by price)
You will obtain in Personal Income Tax a capital gain or loss for the difference between:
(+) Actual amount of the transfer (or transfer value for Inheritance and Gift Tax purposes if the transfer is free of charge).
(–) Expenses and taxes inherent to the transmission paid by the transferor.
Acquisition Value (the date of acquisition will be the date of constitution of usufruct in your favor)
(+) Actual amount of the acquisition (or acquisition value for Inheritance and Gift Tax purposes if the acquisition was free of charge).
(+) Investments and improvements made in the acquired assets.
(+) Expenses and taxes inherent to the acquisition (except interest), paid by the acquirer.
(–) For the years in which the real estate over which the usufruct was established was leased or transferred and for which income from real estate capital was obtained (article 40.1 of the Personal Income Tax Regulations ): amount of tax-deductible amortization, calculating in any case the minimum amortization, regardless of its effective consideration as an expense. With the limit of the full income obtained from said lease.
Amortization of the right of usufruct (article 14 Regulation of the Personal Income Tax ):
(–) For the years in which the real estate over which the usufruct was established was at the disposal of the usufructuary and not leased or transferred ( article 37.1.k) of the Personal Income Tax Law ): The acquisition value must be reduced proportionally to the time of use.
Abatement coefficients ( DT 9 of the Personal Income Tax Law ): Real rights of enjoyment or enjoyment over real estate acquired before December 31, 1994. The acquisition date must be specified, which will depend on the legal transaction under which the usufruct was established.
The usufructuary is the one who has the right of use and enjoyment and receives the fruits of the property, for which reason the following income is attributed to him in Personal Income Tax :
A. If you rent 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 Regulation] which will be:
B. If the property is at your disposal and is not rented or transferred: Real estate income allocation
Free of charge:
• By acts inter vivos
• By acts mortis causa
In favor of the bare owner
• For consideration
• Free of charge
Determines the consolidation of ownership and full ownership of the property in the bare owner (See consolidation of ownership)
This table is for informational purposes only.