Investing in bare ownership: advantages and limitations

Investing in bare ownership means buying a property without the right of usufruct. During the period of divided ownership, the usufructuary uses the property, collects the rent, and manages it. You, the bare owner, receive no income. When the usufruct ends, full ownership is automatically restored to you, without any further taxation.

The trade-off is a discount on the price, ranging from 25% to 40% of the market value, according to economie.gouv.fr. This is a range, not a hard and fast rule. The page describes the advantages cited by this source, the limitations, the duration of the usufruct, and the sharing of expenses. It provides no information on returns, program options, or tax valuation scale.

The advantages cited by economie.gouv.fr

The page on economie.gouv.fr dedicated to bare ownership (21/08/2025) highlights several points.

• A real estate portfolio at a lower cost, thanks to the discount.
• Management is ensured by the usufructuary, which manages the rental and tenant relations.
• Routine expenses and maintenance are the responsibility of the usufructuary.
• A transfer calculated on the bare ownership. In the case of a gift or inheritance, the taxes are calculated solely on the value of the bare ownership, with allowances depending on the relationship between the beneficiary and the beneficiary.

These advantages come with a trade-off, described below. None of them guarantees a result: it depends on the price paid, the duration, and your individual circumstances.

The limits to examine

• No income. The bare owner receives no income for the entire duration of the usufruct. The same source describes it as a long-term investment.
• No enjoyment of the property. Only the usufructuary can use it and collect the income from it.
• Major repairs. These costs remain your responsibility under the conditions described below.
• A supervised outing. You can sell your bare ownership. The sale of full ownership can only be done with the agreement of the other owner: the usufructuary's agreement for the bare owner, and the bare owner's agreement for the usufructuary. The usufructuary can sell or transfer their usufruct free of charge without your consent (service-public.gouv.fr, fact sheet F934, verified on 03/07/2026).
• Debts not deductible for IFI purposes. According to the instructions for the 2042-IFI 2026 declaration (section "Non-deductible debts"), debts relating to split ownership assets, included in full ownership in the IFI taxable estate of the usufructuary, are not deductible for the bare owner.

The duration of the usufruct

Usufruct can be temporary or for life.

The F934 sheet lists other causes of extinction: the expiry of the agreed period (30 years, for example, for a legal person), the merging of usufruct and bare ownership in the same person, non-use for 30 years, renunciation, total loss of the property and abuse of enjoyment.

At the end of the usufruct, full ownership (bare ownership plus usufruct) is automatically reconstituted in favor of the bare owner. According to the same document, the usufructuary cannot claim compensation for improvements: they return the property and settle the accounts with the bare owner.

Who pays for what?

Property tax. The BOFiP (BOI-IF-TFB-10-20-20) states that the usufructuary enjoys the income from the property and is liable for property tax. Their name appears on the tax roll after that of the bare owner, whose registration does not make them jointly liable. economie.gouv.fr clarifies that the bare owner is not required to pay property tax or the housing tax on second homes.

Major repairs. economie.gouv.fr cites, under Article 606, load-bearing walls, beams, roofs, retaining walls, dikes, and fences; we have not reviewed the original text of the article. For a building, service-public.gouv.fr specifies that these only concern the structural elements.

IFI. Assets subject to a usufruct are included in the usufructuary's estate at their full ownership value. The bare owner, without income or immediate benefit, generally has nothing to declare (BOFiP, BOI-PAT-IFI-20-20-30-10; fact sheet F563). Specific circumstances should be verified before filing.

Numerical example (fictitious profile): bare ownership of a property worth €200,000 for 15 to 20 years

Situation. An investor is considering purchasing the bare ownership of a property whose full ownership is worth €200,000, with a temporary usufruct of 15 to 20 years. The property tax is assumed to be €1,800 per year. A roof costing €12,000 will need to be replaced during the usufruct period.

Issue. He will not receive any rent. He wants to calculate the purchase price, the expenses he will not have to bear, and the potential cash outflow during the split ownership period.

Strategy. Calculate the price using the limits of the discount range, the property tax over 15 and 20 years, then the roof, assuming that it falls under major repairs and does not result from a lack of maintenance.

Result.

The property tax of €1,800 per year represents €27,000 over 15 years and €36,000 over 20 years. It is borne by the usufructuary, and not by the bare owner.

The profile is fictitious and the values are assumed. The calculation does not include acquisition costs, exit taxes, or any returns, and does not predict the outcome of your specific situation. The classification of a repair as a major repair is verified on a case-by-case basis.

What changes depending on your situation

• The discount actually negotiated and the duration of the usufruct retained.
• The condition of the property and the nature of the work to be carried out: maintenance or major repairs.
• The link between the usufructuary and the bare owner.
• Your objective: building wealth, inheritance, other.
• Your situation with regard to the IFI (French wealth tax), including the impossibility of deducting certain debts.
• The nature of the asset: housing, company shares, SCPI shares (dedicated page).

No results are promised: the rule depends on your situation.