Real Estate Life Annuity
The premise of the real estate annuity is to ensure a complementary pension during retirement by obtaining a monthly income, thanks to the Sale of Bare Ownership of the property.
With this, the usufruct of the home will be preserved and you will be able to receive an additional pension month by month to enjoy retirement with much more financial comfort.
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More than 50.000 people have already been guided to increase the profitability of their homes.
What is Life Annuity?
The real estate annuity is a service aimed at people over 65 years of age who own a home. The homeowner sells bare ownership of the house in exchange for receiving a monthly annuity and maintains the right to continue using his or her home as long as he or she lives.
This allows the seller to ensure the with an extra monthly income for life, thus improving his purchasing power, which he can use for home improvements or any other expenditure that was previously out of reach.
Modalities of Real Estate Life Annuity
In all of the options, it is possible to receive an advance of capital (to be agreed).
Classic Life Annuity
A monthly life income is received in exchange for the sale of the bare property of the home, reserving in turn the right of usufruct of it throughout his life.
This is the most common option.
Temporary Life Annuity
The seller maintains the usufruct for life; however, the monthly payments will be received for a previously determined period of time.
Life Annuity Outside the Home
The seller renounces the right to use the home, but in exchange receives a higher monthly payment than the classic life annuity.
This option is most suitable for people who may wish to leave the home, to move to a residence for example.
Distribution of Expenses in the Sale of Bare Ownership
Seller / Usufructuary
- Maintains the right to use and enjoy the property
- Expenses to be assumed: ordinary community fee, contents insurance, urban waste tax, and supplies.
Buyer / Investor
- Purchase the ownership (bare ownership) of the property
- Expenses to be covered: Municipal Capital Gains Tax, Real Estate Tax (IBI), extraordinary assessments, and building insurance. As well as expenses incurred during the sale (Property Transfer Tax, notary fees, and registration fees).
Calculate your Real Estate Life Annuity
The economic conditions of the operation are calculated taking into account numerous real estate, actuarial and financial factors, the most important being the market value of the property and the life expectancy of the beneficiary or beneficiaries, according to the official tables of the General Directorate of Insurance and the National Institute of StatisticsIf you want to know all the related information, you can visit our article in which we explain everything you need to know about real estate annuity.
Market value
It is obtained after carrying out a market study or through an official appraisal.
Life or Temporary Usufruct
If it is for life, the calculations are made based on the life expectancy of the usufructuary's age, according to the National Institute of Statistics.
Operation Type
You can choose between receiving a single payment, a monthly income or a combination of these.
Use our Real Estate Annuity Calculator
With the calculator of Mas Vida You will be able to calculate the approximate pension that corresponds to you.
To do this, you simply have to select the data related to your house and age and we will show you the result:
Steps to Follow to Get a Life Annuity
Requirements
To carry out this type of operations, only two requirements are needed:
1. preferably have 60 years or more.
2. Be owner of a property.
Formalization process
1. We meet with the interested party to learn about their preferences and specific needs.
2. We analyze your case internally and present you with several payment proposals.
3. We look for an investor interested in purchasing the house according to the previously agreed terms.
4. The transaction is completed before a Public Notary and registered with the Land Registry.
In addition, once the contract is formalized, you will continue to have the comprehensive support of Mas Vida.
Our multidisciplinary team—made up of real estate lawyers, administrative managers, financial advisors, and our own customer service team—remains at your disposal throughout the life of the agreement.
Single Interlocutor
We assign an account manager who will handle any questions or paperwork with the buyer so you don't have to worry about additional procedures.
After sales support
We have direct lines (phone, email, and WhatsApp) to address contractual questions, notarial reviews, payment adjustments, or any unforeseen issues that may arise.
Proactive monitoring
We send deadline reminders and regular updates on the status of your requests, ensuring that everything is resolved with the speed and transparency you deserve.
Thus, your peace of mind is guaranteed from the moment you sign the contract until the last day it is valid.
Advantages of Real Estate Life Annuity
Free formalization expenses
The seller will not have to pay any kind of expenses related to the Notary's Office and the Land Registry. All the taxes derived from the operation will be assumed by the buyer, except for the Municipal Capital Gains Tax, which will be assumed by the seller.
Legal guarantees
It has all the legal guarantees, as all transactions are formally completed before a public notary and registered with the Land Registry.
Shared Ownership
The operation can be completed by two people ( e.g. spouses), as long as they are both the homeowners.
Forget the IBI and the spills
The usufructuary will stop paying for ever the receipts of the Real Estate Tax, the Community fees and the building insurance. It will only have to assume the ordinary quotas of the Community, the receipts of the supplies (water, light, etc.) and the Urban waste tax.
Rental and sale of usufruct
The usufruct holder has the right to rent the property or sell the usufruct.
Excellent tax treatment
If the operation is carried out on a property declared as a habitual residence, the usufruct holder is exempt from paying taxes for the increase of the patrimony in the IRPF.
We Offer You a Totally Free Study
We carry out a study and valuation of your property completely free of charge. After closing the operation before a notary, you can use the amount received as you prefer.
Enjoy financial freedom!
Comparison with Other Services
| Sale and Leaseback | Single Payment (Sale of Bare Ownership) | Real Estate Life Annuity | Reverse Mortgage | Reverse housing | |
| Purchase price | Approximately 70%-75% of the value of the property | Depends on the age of the owners | Depends on the age of the owners | There is no purchase price because the home isn't for sale. The mortgage amount received is a maximum of 40% of the property's appraised value. | Approximately 70%-75% of the value of the property |
| Condition of use | Rent | Usufruct | Usufruct | You are still the owner | Rent |
| Warranty | Notary and Property Registry | Notary and Property Registry | Notary, resolution clause and Property Registry | Notary and Property Registry | Notary and Property Registry |
| Tax advantages (over 64 years of age and habitual residence) | Total exemption in the increase of assets (IRPF) | Total exemption in the increase of assets (IRPF) | Partial exemption (from 80% to 92% depending on age) in the increase in assets (IRPF) | Reverse mortgages are not subject to personal income tax. | Total exemption in the increase of assets (IRPF) |
| Formalization expenses | Municipal Capital Gains Tax and fees | Municipal Capital Gains Tax and fees | None | Independent appraisal and advice | Municipal Capital Gains Tax and fees |
| Maintenance expenses | Ordinary community fee, Supplies, Urban waste tax, Contents insurance | Ordinary community fee, Supplies, Urban waste tax, Contents insurance | Ordinary community fee, Supplies, Urban waste tax, Contents insurance | IBI, Ordinary community fee, Supplies, Extraordinary contributions, Urban waste tax, Building insurance, Contents insurance | Ordinary community fee, Supplies, Urban waste tax, Contents insurance |
Learn about Real Cases of Our Clients
Learn about the experiences of those who have transformed their financial lives with Mas VidaWith many years of experience in the sector and hundreds of satisfied customers, you can completely trust us.
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FAQ
How many people can contract the product for the same house?
One or two people, as long as they are the owners of the house.
Who acquires the Nuda Property of your house?
An investor with extensive experience and a high level of specialization in the Spanish real estate market. Mas Vida We work with the best professionals in the sector.
Are Monthly Rents guaranteed?
Yes, through a Resolution Clause that is included in the Public Deed. This establishes that, in the event of non-payment of 2 installments by the investor, you reacquire Full Ownership of your house without having to repay the payments received to date.
When do you start receiving Monthly Rents?
From the moment you formalize the product before a notary and always within the first 7 business days of each month.
Do you need to live in the house in order to receive the Monthly Rent?
No, regardless of where you live you will continue to receive the Monthly Income of the Real Estate Life Annuity
Can you rent the house after formalizing the product?
Yes, this allows you to obtain an additional income in addition to the Life Annuity. Mas Vida We take care of finding a tenant and managing the rental so you don't have to worry about anything.
And if you have to repair the windows of the house or change the fridge… Who bears these expenses?
This type of expense continues to be assumed by the user, since the only home maintenance expenses that are transferred to the investor are the Real Estate Tax, extraordinary spills and home insurance.
product regulation
The Life Annuity is regulated in the Civil Code of Spain in articles 1.802 and 1.808.
Full Ownership
Full Ownership of a house is made up of 2 rights:
- Bare property
- Usufruct
En Mas Vida We transfer the Right of Bare Ownership of your house, while you continue to maintain the Right of Use and Enjoyment over it for life.
Possible risks, disadvantages or drawbacks of real estate life annuities
When transferring the property in exchange for a life annuity you depend on the solvency of the buyer: if he stops paying you will have to claim legally, although Mas Vida It guarantees assistance and legality throughout this process. The income can be fixed, so inflation can reduce its purchasing power, but it can also be adjusted to the CPI. Furthermore, if you die in the first few years, you will have received less than the real value of the home, and you will no longer participate in any potential property appreciation. As long as you continue to live in the house, you will continue to cover the ordinary maintenance and utility costs.
What are the tax implications of a real estate life annuity?
The transfer generates a capital gain, but if the owner is 65 years of age or older and the property was their primary residence, this gain is exempt from personal income tax.
If the property is not the primary residence, the gain may also be exempt if up to €240 is reinvested in establishing the annuity itself within six months of the sale.
The monthly payments you receive are taxed as capital gains, but only a small percentage, depending on your age at signing: those over 70 are taxed only 8% of each payment; those between 66 and 69 are taxed 20%; those between 60 and 65 are taxed 24%, and so on.
What implications does a real estate life annuity have for heirs?
When you die, the life annuity expires (unless you have provided for a reversion to your spouse or heir), and the buyer automatically consolidates full ownership; therefore, your heirs do not receive the property. They could only challenge the transaction if they prove fraud or incapacity upon signing. No new municipal capital gains tax is generated by the termination of the usufruct, and the heirs will only pay taxes on the assets or cash that remain in your estate.
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Receive a Free Assessment
Ready to take the first step towards a worry-free financial life? Contact us today. Our expert team is here to answer your questions and guide you on the path to a better life.