Selling bare ownership is a formula that allows people over 65 to sell their main residence in exchange for a single payment or a lifetime annuity, while maintaining the use and enjoyment of their home for life.
It is a solution that provides liquidity and instant income to those who want to enjoy the wealth they have saved throughout their lives while they are still alive, and at the same time, it is an interesting opportunity for those who want to invest in real estate with a significant discount on the market price.
How does the sale of bare ownership work?
Through an intermediary company such as MAS VIDA An appraisal is made of the property that is to be sold. sell the bare propertyThe price will depend on the age of the sellers or usufructuaries: the older the owners, the smaller the discount on the market value will be.
How much money is obtained from the sale of the bare ownership?
To give you an idea: a property valued at €300.000 whose owners are around 80 years old will be sold with an approximate discount of 20% on the market price. MAS VIDA It is responsible for finding a buyer or investor who, after visiting the property, decides if the price is in line with their expectations.
The operation is regulated by the financial authorities
Once the price is agreed upon, the transaction is finalized at a notary's office. The process is fully legal and supervised by financial authorities. The seller receives the proceeds from the sale or a... annuityAccording to their preferences, they can remain in the property for life. The buyer or investor will only be able to dispose of the property upon the death of the usufructuaries or sellers.
Why has bare ownership failed to take off in Spain?
Selling the bare ownership of a property is a solution used by thousands of people in other European countries. However, in Spain it is a little-known alternative, perhaps due to a lack of information about these types of products, which are an excellent financial tool for making real estate assets profitable and supplementing retirement income.
What is the money obtained from the sale of the bare ownership used for?
There are many reasons why a person decides sell the bare property from their home to transform "immobilized" assets into real liquidity. This can be done through a lifetime annuity or by receiving a lump sum payment. Let's look at some real-world examples:
Cancel debts and gain financial peace of mindEliminating outstanding mortgages or loans frees up monthly income. By letting go of payments and amortizations, you can achieve a more comfortable daily financial situation.
Renovate the house to make it more habitableHaving cash on hand makes it easier to adapt your home to new needs: replacing the bathtub with a shower, renovating the kitchen, or improving accessibility. Small changes that make a big difference in everyday life.
Helping children take the step towards acquiring their own home
El housing problem This prevents many young people from taking the step to become independent: rents are sky-high, and banks require a down payment to finance a home purchase. Many parents use the money obtained from selling the bare ownership of their property to help their children buy their first home. Having capital available gives them a more stable start.
Fulfilling the dream of a second home
The cash obtained can be used to purchase an apartment at the beach or in the countryside. A personal space to disconnect, enjoy free time, and change your surroundings. And you always maintain your primary residence to combine it with this second home.
Enjoy everyday life more and have “MAS VIDA"
Having extra income opens the door to traveling, pursuing hobbies, or simply living with fewer worries. Ultimately, it's about turning wealth into a better quality of life.
Does selling bare ownership have any tax implications?
One of the biggest advantages of this type of transaction is that people over 65 who sell the bare ownership of their primary residence do not have to pay a single euro of capital gains tax. They only have to cover the municipal capital gains tax and the regular community fees.
In short, selling the bare ownership of a property presents itself as a flexible and effective alternative for transforming assets into well-being. It allows you to gain liquidity without giving up your home and opens up new opportunities. If done well, it can represent a turning point in your quality of life.
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