For many years, selling the bare ownership of a home was almost exclusively associated with very elderly people. However, this is changing in Spain. Increasingly, younger people are choosing to learn more about this option and opt for it as a way to supplement their pension and gain financial security without giving up their home.
The most recent data we have in MAS VIDAThese figures clearly illustrate this trend: the average age of those selling bare ownership has dropped from 81 to 74. Today, 70% of people choosing this option are under 80, something unthinkable just a decade ago.
Adjusted pensions and ever-increasing spending
To understand this change, it is important to look at the economic context that many older people face. average retirement pension In Spain, the average monthly income is around €1.510, while widow's pensions are approximately €936 per month. Although these amounts are essential for millions of households, they are often insufficient to cover all expenses.
According to the National Institute of Statistics (INE), a single person over 65 needs around €19.000 a year to cover their regular expenses, which is equivalent to about €1.600 per month. This difference explains why, according to the European Anti-Poverty Network (EAPN-ES), 20% of people over 65 in Spain are at risk of poverty or social exclusion.
Adding to this situation is another discouraging statistic: only 9% of Spaniards have a supplementary company pension, compared to an average of 20% across the European Union. It is no coincidence that Brussels is urging governments to promote measures that help guarantee sufficient income during retirement.
Why are bare ownership rights being sold at younger ages?
Given this situation, many older people are choosing to make decisions earlier, while they still have time to plan calmly. Selling the bare ownership allows them to obtain liquidity in exchange for the home, while maintaining the right to live in it for life.
Data on the operations carried out by MAS VIDA They reflect this advancement in decision-making:
- 45% of the operations are carried out by people between 70 and 80 years old.
- 30% corresponds to people over 80 years old.
- And 25% already belong to the 65-70 age group, a profile that previously barely appeared in this type of operation.
This last group is especially significant, as it demonstrates a change in mentality: it is not just about reacting to an urgent need, but about anticipating and living in retirement with greater economic stability.
How much capital can be obtained from the sale of bare ownership?
The amount received when selling the bare ownership depends primarily on the seller's age and the property's value. On average, the capital obtained is around €175.000. This amount corresponds to the property's actual value, less a discount that varies depending on the seller's age.
With this capital, many older people can supplement their pension, pay off debts, cover medical expenses, help family members in need, or simply gain financial peace of mind, knowing that they can continue living in their home for the rest of their lives.
Can the sale of bare ownership be carried out if the property has a mortgage?
A common question is what happens if the property still has a mortgage. In these cases, selling the bare ownership is also possible, provided the debt can be paid off with part of the proceeds. In fact, for some people, this is one of the main reasons for choosing this option: eliminating high monthly payments and improving their cash flow from the outset.
Tax aspects to consider
From a tax perspective, once the transaction is finalized, the seller is only responsible for the Municipal Capital Gains Tax. All other expenses—notary fees, Property Registry fees, Transfer Tax, and Stamp Duty—are the buyer's responsibility.
Furthermore, if the property is the seller's primary residence and they are over 65 years old, they are exempt from paying income tax on the capital gain, which represents a significant tax advantage.
A decision that requires information and reflection
Selling the bare ownership of a property isn't a universal solution, but it's an increasingly popular alternative for those who want to supplement their pension without leaving their home. Gathering information in advance, fully understanding the implications, and analyzing your personal situation are key to making a well-informed decision tailored to your individual circumstances.
In a context of tight pensions and longer life expectancy, planning ahead is becoming a fundamental tool to enjoy retirement with greater peace of mind and security.
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