Usufruct, bare ownership, full ownership: the differences between these three rights

Full ownership is the combination of two rights: usufruct and bare ownership. As long as a single person holds both, they are the full owner. When these rights are divided between the usufructuary and the bare owner, it is called split of ownership: the usufructuary uses the property and receives its income, while the bare owner can dispose of their bare ownership but cannot occupy the property or derive any income from it.

This page outlines the rights and obligations of each party, the termination of the usufruct, and the tax scale that allocates the value according to age. It does not address gift or inheritance taxes applicable to bare ownership. For information on gifts with reservation of usufruct, please see our dedicated page.

The three rights in one table

The table is taken from Service-Public (sheet F33076, verified on 06/12/2024).

Two clarifications from sheet F934 ("What does usufruct consist of?", verified on 03/07/2026):

• the usufructuary can sell or transfer his usufruct free of charge without the agreement of the bare owner; ;
• The sale of the property in full ownership requires the agreement of the usufructuary and that of the bare owner.

The bare owner can, for their part, decide to sell their bare ownership.

Usufruct: what it allows

Service-Public defines it as follows: "Usufruct is the right to use a property and receive its income, without owning it."«

The usufructuary may live in the property, rent it out, and collect the rent. Fact sheet F934 also lists interest earned on a sum of money and harvests as income for the usufructuary. The bare owner's agreement is required for rural, commercial, artisanal, or industrial leases.

If the usufructuary rents out a building, he is taxed on the income from that rental.

Who pays for what?

For a property, major repairs only concern the structural elements.

Before using the property, the usufructuary draws up an inventory if it consists of movable property, and a condition report if it consists of immovable property. At the end of the usufruct, they cannot claim compensation for having improved the property.

The IFI (French Wealth Tax): the usufructuary declares full ownership

The BOFiP (BOI-PAT-IFI-20-20-30-10, version in force since 08/06/2018) establishes the general rule: assets subject to a usufruct are included, for IFI purposes, in the usufructuary's estate at their full ownership value, except in certain cases. The bare owner generally has nothing to declare.

An exception is made in the text for the legal usufruct of the surviving spouse (Article 757 of the Civil Code): in this case, the tax liability is divided between the bare owner and the usufructuary. The contractual usufruct under Article 1094-1 of the Civil Code does not benefit from this exception. The BOFiP (Official Bulletin of Public Finances) provides for other specific cases, which are not addressed on this page.

How does usufruct end?

According to fact sheet F934, usufruct ends in the following cases:

• death of the usufructuary, except for gift during his lifetime or transfer by will; ;
• expiry of the agreed term, for example 30 years when the usufruct is granted to a legal entity; ;
• merging of usufruct and bare ownership in the same person; ;
• non-use for 30 years; ;
• renunciation by the usufructuary; ;
• total loss of the property; ;
• abuse of usufructuary's right of enjoyment (damage to the property or lack of maintenance); ;
• Parents' legal usufruct: it ends when the child holding the bare ownership reaches 16 years of age. The information sheet specifies that parents have the usufruct over the property of their children under 16 years of age.

A settlement of accounts then determines what the usufructuary owes to the bare owner, and vice versa.

The tax scale: how the value is distributed

The allocation of value between usufruct and bare ownership serves as the basis for registration duties in the event of a gift, inheritance or sale (F33076). It is determined by a scale, established according to the age of the usufructuary (F934; article 669 I of the CGI, BOI-ENR-DMTG-10-40-10-50, § 30).

The BOFiP (§ 10) defines a life usufruct as "one that terminates only upon the death of the beneficiary or beneficiaries"; § 70 deals separately with fixed-term usufruct. The tax brackets are labeled "under 91 years of age" and then "over 91 years of age": the exact age of 91 should be verified with the source.

Two rules complete the scale (BOFiP, § 70 and § 80):

• A fixed-term usufruct is valued at 23,% of the value of the entire property for each ten-year period, without fraction and without regard to the age of the usufructuary. This value cannot exceed that of a life usufruct; ;
• A usufruct in favor of a legal entity cannot last more than thirty years. Its maximum value is therefore 69 %.

Numerical example (fictitious profile)

Situation. A 66-year-old woman owns an apartment outright, valued at €600,000. She plans to retain the usufruct and give the bare ownership to her son. Calculation assumptions: the usufructuary is 66 years old, the usufruct is for life, and the property is worth €600,000.

Issue. How is the value of €600,000 divided between usufruct and bare ownership, and what does the duration of the usufruct change?

Strategy. The firm is reviewing with the owner and her notary the reference age, the nature of the usufruct (life annuity or fixed term) and the timetable.

Result. At 66 years old, she falls under the "under 71 years of age" category: usufruct at 40 %, bare ownership at 60 %.

If the usufruct were granted for a fixed term of 10 years, the rule of 23 % per ten-year period would yield €138,000. For 20 years, it would yield 46 %, or €276,000: this amount exceeds that of a life usufruct (€240,000), and the BOFiP (§ 70) specifies that the value must not exceed that of a life usufruct. The value retained would therefore be €240,000.

This final step is based on our own interpretation: we compare a fixed-term usufruct to a life usufruct held by the same usufructuary, aged 66. The BOFiP (French Official Tax Bulletin) does not provide an example on this point: this should be confirmed with your notary.

This profile is fictitious. The figures apply the tax scale as written in the BOFiP (Official Bulletin of Public Finances) and do not guarantee any outcome for your specific situation. The calculation does not indicate any subsequent tax liability: this is not addressed here.

What changes depending on your situation

• The age of the usufructuary, which determines the distribution of value.
• The nature of the usufruct: for life, for a fixed term, or for the benefit of a legal entity.
• The type of property: residential building, rented premises, property subject to a rural, commercial, artisanal or industrial lease.
• The origin of the split of ownership: gift, will, sale, or usufruct of the surviving spouse.
• The situation with regard to the IFI (French wealth tax).

No results are promised: each point is verified on your file.