Bare ownership: is it worth buying?

What bare ownership is, in simple terms

Full ownership is made up of two parts: the right to use and enjoy the home, and the right to own it. When someone holds the usufruct (usufrutto), the first part belongs to them: they can live in the home or rent it out and collect the rent. The person who keeps the second part is the bare owner (nudo proprietario), that is, the owner without enjoyment.

The usufruct lasts at most for the whole life of the usufructuary. For a legal entity, such as a company, the maximum duration is 30 years (art. 979 of the Civil Code). When the usufructuary dies, bare ownership turns into full ownership by itself, without notarial deeds and without new taxes.

When bare ownership is sold

The typical situation is this: an elderly person wants to take a sum of money out of the home but continue to live in it. They sell the bare ownership and keep the usufruct for themselves. The buyer pays now and will have the home when the usufruct ends.

This is not a wrong sale in itself. However, it is a purchase with long and uncertain timing, because you do not know when the home will really be yours. Before buying you must be sure you can wait.

How much it costs: the price depends on age

The price of bare ownership is not a fixed percentage of the value of the property. It depends on the age of the usufructuary and on a reference rate, with coefficients that the law sets in a table attached to DPR 131/1986 (arts. 46 and 48). The coefficients are updated by decree of the Ministry of the Economy (Ministero dell'Economia), so you should ask the notary for the current value.

Example with round numbers: a property worth €100,000. If the usufructuary is very elderly, the price of the bare ownership will be higher. If they are younger, it will be lower. The actual calculation is done by the notary using the updated coefficients, not by a website or an advert.

Remember that the price you pay is one thing, and the basis on which taxes are paid is another. For bare ownership, the tax value of the share is calculated using the coefficients in the table attached to DPR 131/1986. Ask the notary to work out the figures with both numbers.

What you can and cannot do

With bare ownership you are the owner, but you cannot use the home. You cannot live in it, you cannot rent it out and you cannot collect the rent. Those rights remain with the usufructuary, who may also transfer their right or rent the home out (art. 980 of the Civil Code).

You can sell your bare ownership, but whoever buys from you inherits the same situation: they must wait for the end of the usufruct. The resale value will therefore be limited, and it must be checked case by case.

Who pays the costs

Costs are divided by law. The usufructuary pays ordinary maintenance, that is, routine repairs (art. 1004 of the Civil Code). The bare owner pays extraordinary costs, that is, works affecting the structure, such as the roof or the foundations (art. 1005).

The IMU, the municipal property tax (imposta municipale sugli immobili), is paid by the usufructuary. Not by you, for as long as the usufruct exists. Here is an example with round numbers of the calculation the Comune makes for a non-main home: cadastral income (rendita catastale) of €500, multiplied by 1.05 and then by the multiplier 160 (for properties in category A, excluding A/10), gives a taxable base of €84,000. With the basic rate of 0.86% the annual tax is €722.40. The Comune may raise the rate up to 1.06%, and you can find the actual rate for your Comune on the website of the Ministry of the Economy or of the Comune.

The biggest risk: a usufruct already registered

The serious risk concerns the legal status of the property. If the usufruct was recorded in the public registers before any attachment (pignoramento), it remains valid even against you. You cannot ignore it, because it is a right you must respect.

How do you recognise it? Ask the Land Registry Office (Conservatoria) for an up-to-date mortgage search (visura ipotecaria), and have the notary explain every entry (trascrizione). If the notarial deed states that the usufruct is established, check the date as well.

Checks before you sign

Before signing a preliminary contract or a proposal, ask about and check these points:

• Who the usufructuary is and how old they are, because the price depends on them.
• Whether the usufruct is registered and when, with an up-to-date mortgage search.
• Whether the property is occupied by the usufructuary or rented to third parties, and under which contract.
• The tax value calculated with the updated coefficients, with the notary.
• Who pays the extraordinary costs, and in which clause of the contract you will find this.
• Cadastral and planning compliance, as for any home you buy.

If something does not add up, stop and ask. A purchase with long timing is not easily corrected after signing.

In practice

• Ask the notary for the tax value of the bare ownership, calculated with the updated coefficients.
• Get the mortgage search and check the registration date of the usufruct.
• Check who pays the IMU and the extraordinary costs, as written in the contract.
• Work out whether you can afford to wait, without counting on using the home before the usufruct ends.

Frequently asked questions

Can I live in the home if I buy the bare ownership?

No, not while the usufructuary is alive. The use of the home belongs to them, even though the home is yours. You will be able to move in only when the usufruct ends, or if the usufructuary voluntarily transfers their right to you.

Do I need to do anything when the usufructuary dies?

Generally no: bare ownership becomes full ownership by itself, without notarial deeds and without new taxes. Nevertheless, keep the documentation and ask the notary how to update the cadastre and the ownership records.

Can I get a mortgage for bare ownership?

It depends on the bank and on the situation of the property. Before relying on a loan, ask the bank whether it considers bare ownership and under what conditions. The Bank of Italy explains how a mortgage works in its guide, which you can consult to understand the questions to ask.

Sources

• Civil Code, art. 978 (usufrutto)
• DPR 131/1986 (Consolidated law on registration tax)
• Italian Revenue Agency (Agenzia delle Entrate) — tax guides (buying a home)
• Bank of Italy (Banca d'Italia) — guide «Comprare una casa: il mutuo»

For a complete route from search to the notarial deed, read Buying a home: all the steps from search to notarial deed. If the contract includes a preliminary contract, check what the preliminary contract (compromesso) must contain. For the role of the notary in the final stage, see what happens at the notary.