Home / Business owners & succession / Wealth structuring / Division of ownership
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.
Definition
What is the division of ownership rights?
The division of ownership separates full ownership into two rights. Usufruct is the right to use an asset and receive its income. Bare ownership is the right to dispose of the asset, while the right of use remains with the usufructuary. Usufruct is temporary: it ends, in particular, upon the death of the usufructuary, the expiration of the agreed term, or when the usufruct and bare ownership are reunited in the same person.
For registration fees (gift, inheritance, sale), the value of the usufruct and that of the bare ownership are fractions of the full ownership. The fraction depends on the age of the usufructuary : Article 669 of the CGI, table below.
Money is a consumable good: the usufruct of a sum of money becomes a quasi-usufruct (Article 587 of the Civil Code). Upon its termination, the usufructuary returns goods of the same nature or their equivalent in money, and the bare owner becomes the creditor.
When a property held in divided ownership is sold, the proceeds can finance a new purchase: this is called reinvestment. The purchase agreement includes a declaration of reinvestment. There is no legally mandated timeframe between the sale and the purchase.
Scale of article 669 of the CGI
| Age of the usufructuary | Usufruct | Bare ownership |
|---|---|---|
| Under 21 years of age | 90 % | 10 % |
| Under 31 years of age | 80 % | 20 % |
| Under 41 years of age | 70 % | 30 % |
| Under 51 years of age | 60 % | 40 % |
| Under 61 years of age | 50 % | 50 % |
| Under 71 years of age | 40 % | 60 % |
| Under 81 years of age | 30 % | 70 % |
| Under 91 years of age | 20 % | 80 % |
| Over 91 years old | 10 % | 90 % |
Source : service-public.gouv.fr, "What is usufruct?"« (Information verified on July 3, 2026). The sources consulted do not specify the line applicable to an age exactly equal to a given threshold: have this confirmed by your notary before any calculation. Quasi-usufruct and reinvestment: notaires.fr, immobilier.notaires.fr.
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). Since the 2024 Finance Act, this claim for restitution is in principle no longer deductible from the estate (Article 774 bis of the French General Tax Code), except in certain cases.
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.
What is the difference between usufruct and bare ownership?
The usufructuary uses the property, rents it out, and receives the income, provided they retain ownership. The bare owner retains full ownership: they can sell, give away, or bequeath their bare ownership, but the usufructuary retains the right to use and receive the income.
When does the usufruct end?
In particular upon the death of the usufructuary, upon the expiry of the agreed period (30 years maximum for a legal entity), upon the merger of the usufruct and the bare ownership in the same person, after 30 years of non-use, by renunciation or in the event of total loss of the property.
What is quasi-usufruct, and what happens to the debt upon death?
The usufructuary may spend a sum of money and must return the equivalent amount upon the termination of the usufruct. For estates opened since December 29, 2023, Article 774 bis of the French General Tax Code (CGI) generally prohibits deducting this repayment debt from the estate. Three exceptions are provided: the sale price of a property subject to usufruct if the debt is not primarily for tax purposes, the surviving spouse's statutory usufruct, and the special disposable portion between spouses.
