When buying a property in Spain, many couples opt for a classic 50/50 division of full ownership. However, there is a lesser-known but legally and fiscally particularly interesting technique: the split purchase of bare ownership and lifetime usufruct.
Especially for unmarried partners, this approach can make a significant difference. Below, we explain in a general and anonymous way how this purchase structure works and why it is often preferable.
The baseline: buying together without marriage
When two partners buy a property together without being married, they generally do not enjoy automatic inheritance protection in Spain. Even under Belgian law, there is only limited protection that does not apply to a second residence.
Specifically, on the death of one of the partners:
- the remaining partner does not automatically retain the right to use the property;
- the deceased's heirs (e.g. children) can claim rights to his share.
In practice, this can lead to uncertainty or even forced sale of the property.
The solution: split purchase with lifetime usufruct
Instead of a traditional full ownership purchase, one can opt for a split structure:
- Both partners each buy a share in the bare ownership.
- At the same time, together they acquire the lifelong usufruct on the entire asset.
- This provides that the usufruct only ends on the death of the surviving partner.
This technique can be complemented by a recruitment clause (or similar clause), automatically strengthening the rights of the surviving spouse.
Read more about the stipulation of accretion.
Caution: this construction is not always possible in new builds or when buying on plan.
Why is this of interest to unmarried partners?
1. Retention of use without additional inheritance tax
Since usufruct is already established on both partners at the time of purchase, no new usufruct needs to be transferred via inheritance upon death.
The result:
- the surviving partner retains the full use and enjoyment of the property;
- there is no additional tax levy On a transfer of usufruct through succession.
This is particularly relevant as unmarried partners in many Spanish regions are be taxed more heavily in inheritance tax than married people.
2. Protection against intervention by heirs
Without this structure, heirs of the first dying partner can:
- Become co-owner of part of the property;
- and in some cases force sales.
With a split purchase:
- heirs only obtain the bare ownership;
- it remains full right of use with the surviving partner.
As a result, the latter remaining undisturbed in the home, regardless of family situations.
Read more about split buying in Spain.
Conclusion
For unmarried partners, the split purchase of bare ownership and lifetime usufruct offers a thoughtful and protective structure.
This approach:
- it ensures permanent use of the property for the surviving spouse;
- avoids unwanted interference from heirs;
- and can more tax-efficient are than a classic purchase.
Those wishing to acquire property together in Spain without a marriage bond would therefore do well to have this technique thoroughly checked beforehand analyse and get correct legal elaboration.
