If you are searching for property in Spain, you may often see apartments or houses for sale marked as “nuda propiedad.” But what does this mean?
Nuda propiedad (bare ownership) is a special form of property ownership in which the owner does not have the right to use the property or receive income from it.
In other words, the holder of the nuda propiedad legally owns the apartment or house but cannot live in it or collect rental income while another person holds the usufruct (right of use).
How Does Nuda Propiedad Work?
The concept can be explained with a simple example:
- There is a property.
- One person owns the nuda propiedad (bare ownership).
- Another person holds the usufruct — the right to live in the property or receive income from it (for example, by renting it out).
This mechanism is most commonly used when parents transfer ownership to their children but retain the usufruct, allowing them to continue living in the property for the rest of their lives.
What Is Nuda Propiedad Used For?
- Lifetime transfer of property to children or relatives — parents continue living in the property while the children become the bare owners.
- Estate planning and inheritance optimization — the property is transferred in advance, which may simplify future inheritance procedures.
- Investment purposes — buyers can acquire bare ownership at a reduced price and wait until the usufruct expires in order to obtain full ownership.
Conclusion
Nuda propiedad is a useful legal instrument for lifetime property transfers, estate planning, and investment. It allows current owners to retain the right to live in the property while transferring ownership to future beneficiaries, and it offers buyers the opportunity to purchase property at a lower price with the prospect of obtaining full ownership in the future.
