Usufruct: what you buy and what you don't
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What usufruct is in simple termsWhat you really buy with bare ownershipWho uses the home and who pays whatHow much it costs and how the price is calculatedWhat to check in the deed and the land registry extractWhat happens when the usufruct endsIn practiceFrequently asked questionsSourcesIf you buy bare ownership, you buy the home as property, but you cannot live in it or rent it out until the usufruct ends. When the usufruct ends, full ownership merges in you without the need for any other deed.
What usufruct is in simple terms
Usufruct (usufrutto) is the right to use an asset and collect its fruits, for example rent, without owning it. The Civil Code (codice civile) governs it from article 978 and, in article 981, describes it as the right to enjoy something belonging to someone else while respecting its economic purpose.
Ownership is split into two parts. Whoever holds the usufruct has the enjoyment. Whoever holds bare ownership (nuda proprietà) has the title: the asset is theirs, but they do not use it. When the two parts return to the same hands, ownership is said to have been consolidated.
In the advertisement or the deed the wording may be «sale of bare ownership» or «property subject to usufruct in favour of». If you read the second, the full owner is not the seller: another person has the right to use the home.
What you really buy with bare ownership
You buy ownership without enjoyment. This means three concrete things:
- you cannot enter the home while the usufructuary is alive, unless they agree;
- you cannot rent it out or collect rents;
- when the usufructuary dies, or when the right expires, the home becomes your full property without new transfer taxes.
The duration depends on the deed that creates it. As a rule, usufruct lasts for the lifetime of the person. For legal entities, such as companies or bodies, the maximum duration is 30 years (art. 979 c.c.). The deed must state the date or condition on which it ends.
Be aware that the usufructuary can transfer their right or rent out the property (art. 980 c.c.). So you could find yourself living alongside a tenant chosen by someone else. Ask the notary whether the deed includes a ban on transfer.
Who uses the home and who pays what
The law divides expenses into two groups. Ordinary expenses, meaning routine maintenance, are borne by the usufructuary (art. 1004 c.c.). Extraordinary expenses, such as replacing the roof or a load-bearing structure, are borne by the bare owner (art. 1005 c.c.), that is, by you.
This division matters already at the time of purchase. If the home needs major works, the cost may fall on you for years, while the other person lives in the property. Read your contract and have it explained to you point by point, including what happens in the case of urgent works.
IMU also follows precise rules. The taxpayer for the tax is the holder of usufruct, use or habitation, not the bare owner (Law 160/2019, art. 1, paragraph 743). That is why the IMU on a home subject to usufruct is normally paid by the usufructuary. The calculation is based on the cadastral income (rendita catastale): as an example, a cadastral income of €500 for a second home, with a multiplier of 160 and a base rate of 0.86%, gives a tax of about €722 a year. The Comune may vary the rate, so the exact figure must be checked on the Comune's website or on the portal of the Ministry of Economy and Finance (Ministero dell'Economia).
How much it costs and how the price is calculated
Bare ownership costs less than full ownership, because enjoyment is suspended. How much less depends on the age of the usufructuary and the expected duration of the right. The calculation is made using coefficients set by tax law, which the notary applies to determine the base for the taxes.
Invented example: a home is worth €100,000 as full ownership. Bare ownership is worth less, and the difference depends on the age of the usufructuary. The price you pay, however, must be read in the deed and in the calculation made by the notary, not in a figure you give yourself.
Do not confuse the price of bare ownership with a sure advantage. Over time you could pay IMU or extraordinary expenses and be unable to use the home for years. The overall cost must be worked out with all the items, not just the purchase price.
To understand how the final price is reached, read how the costs are calculated in Buying a home: all the steps from the search to the notarial deed (rogito). The calculation of the purchase taxes should be requested from the notary, who does it for your specific case.
What to check in the deed and the land registry extract
Before signing a preliminary contract (compromesso) or a proposal, check these points:
- the land registry extract (visura catastale) and the mortgage register extract (visura ipotecaria), to see who is registered as usufructuary and whether the usufruct is recorded;
- the date on which the usufruct was recorded, because if it predates any attachment or mortgage, the right remains valid even afterwards;
- the duration: a person's lifetime, a fixed date or another condition;
- whether the usufructuary can rent out or transfer the right;
- who pays the ordinary and extraordinary expenses and how they are shared over time;
- whether the deed contains a clause on the insurance risk of the property.
If you are buying at auction and the appraisal report (perizia) mentions usufruct, read it carefully: the appraiser (perito) must describe the rights that remain on the property. You can learn how to read the appraisal report in How to read an auction appraisal report, section by section.
What happens when the usufruct ends
When the usufruct ends, the home becomes your full property. No new deed is needed for the merger of ownership (consolidazione), but it is good practice to have it recorded by checking the registers, because the cadastre and the Property Registry (Conservatoria) must be updated. Ask the notary how to do this and which documents are needed.
If the usufructuary leaves the home by death, the date of expiry must be proven. If the right was for a fixed term, the date is the one in the deed. For those who inherit or receive bare ownership through a succession, the tax rules are different and should be checked with a professional.
In practice
- Check in the contract who the usufructuary is, how long the usufruct lasts and whether they can rent out the home.
- Ask the notary for the calculation of the taxes on bare ownership, not just the price.
- Have it explained to you who pays the ordinary and extraordinary expenses and for how long.
- Check in the mortgage register extract that the usufruct is recorded and with what date.
Frequently asked questions
Can I live in the home if I have bought bare ownership?
As a rule, no. Bare ownership does not give the right to enjoy the home. You can use the home only if the usufructuary agrees and records this in a deed.
Who pays IMU on a home subject to usufruct?
The law names the holder of usufruct as the taxpayer (Law 160/2019, art. 1, paragraph 743). As a rule, the usufructuary pays it. The exact calculation depends on the cadastral income and on the rate set by the Comune.
If I buy a share with usufruct at auction, does anything change?
Yes, because the rights of others remain on the property and must appear in the appraisal report. Read carefully the part on encumbrances and ask the delegated professional how they are handled.
Sources
In the same chapter
- Confirmatory deposit (caparra confirmatoria) and penitential deposit (caparra penitenziale): the differencesWith a confirmatory deposit, if you back out you lose the deposit; if the person who received it backs out, they return it doubled. Here are the differences, with examples.
- Who chooses the notary, who pays for themAs a rule, the buyer chooses and pays the notary, that is, the fee and the taxes: how to read the quote.
- Buying a home: every step from search to the notarial deed (rogito)From the viewing to signing at the notary: the six steps to buy a home, with documents, sums to pay and checks before you sign.
- Preliminary contract (compromesso): what it is and what it must containThe preliminary contract (compromesso) is the agreement through which you commit to buying a home. I explain what it is, what it must contain and how much you risk if the sale falls through.
- Right of habitation (diritto di abitazione): what it isThe right of habitation lets you live in someone else's home only with your family: it cannot be sold or rented out. Here is how it works.
- Pre-emption right: when it exists and how it worksPre-emption (prelazione) is the priority that gives you the right to buy first, at the same price and conditions: when it exists and how it works.
General information, not legal or tax advice: the law and the notice of sale prevail.
