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Split of ownership (bare ownership / usufruct)
Disaggregation: one retains the use and income, the other the ownership, and the tax is levied only on one share.
Full ownership is divided into two parts: usufruct, which grants the right to use or receive income from the property, and bare ownership, which grants ownership of the property at the end of the usufruct. Giving, buying, or inheriting only one of these two parts is less expensive, and the merger is tax-free.
The scale
The value of each share, according to the age of the usufructuary.
| Age of the usufructuary | Usufruct | Bare ownership |
|---|---|---|
| From 41 to 50 years old | 60 % | 40 % |
| From 51 to 60 years old | 50 % | 50 % |
| From 61 to 70 years old | 40 % | 60 % |
| From 71 to 80 years old | 30 % | 70 % |
| From 81 to 90 years old | 20 % | 80 % |
| 91 years and older | 10 % | 90 % |
Article 669 of the French General Tax Code (CGI) applies to life usufructs. The younger the donor, the lower the value of the bare ownership given, and the lower the taxes.
Three uses
To give, to buy, to pass on.
The usufructuary may spend it and owes it to the bare owner at the end of the usufruct (article 587 of the Civil Code): a debt deductible from the estate.
Simulators
Run the numbers with your own figures.
Frequently asked questions
What clients ask us.
Who pays for what during the division of ownership?
The usufructuary receives the income, pays for routine maintenance, property tax, and income tax. The bare owner is responsible for major repairs (Article 606 of the Civil Code), unless otherwise agreed between them.
Who pays the IFI (French wealth tax)?
The usufructuary's share is based on the full ownership value (Article 968 of the French General Tax Code), except in certain cases, notably the legal usufruct of the surviving spouse. The bare owner does not include the property in this calculation.
Can a property with divided ownership be sold?
With the agreement of both parties. The price is divided according to the value of each share, or the parties agree to defer the division of ownership to the price (article 621 of the Civil Code), which avoids undoing the prepared transfer.
