What is a split purchase? A split purchase is a property transaction in which ownership is split: the parents buy the usufruct (the right to use or rent the property) and the children (or other heirs) buy the bare ownership. This is a popular estate planning technique, as the children acquire full ownership upon the death of the parents without paying any inheritance tax on it in Belgium.
In this article, we analyse how this mechanism works specifically in Spain, the pitfalls in new construction, and the impact on your succession planning in Belgium.
Beluister ook onze podcastaflevering over de gesplitste aankoop in Spanje.
How does a split purchase work in Spain (Existing construction)?
In brief: Split purchase (usufructo and nuda propiedad) legally perfectly possible. However, the tax valuation of usufruct differs from the Belgian calculation method. Whereas Belgium uses tables, Spain uses a fixed formula based on the age of the youngest usufructuary.
The Spanish calculation of usufruct
The value of the usufruct is calculated in Spain with the "Rule of 89":
Formula: 89 - age of youngest usufructuary = percentage of full ownership (with a minimum of 10% and a maximum of 70%).
Calculation example: A couple (father 54, mother 53) together with their daughter buy a villa on the Costa Calida (Murcia region) for €250,000.
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Calculation of usufruct: 89 - 53 (mother's age) = 36%.
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Value usufruct (parents): 36% of €250,000 = € 90.000.
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Value bare property (daughter): 64% of €250,000 = € 160.000.
Tax impact on purchase and death
On a resale (re-sale) both parents and daughter pay Transfer tax (ITP) on their respective part. In regions such as Murcia or Andalusia, this rate varies (e.g. 8% to 10%).
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On death: Unlike Belgium, where usufruct often accrues tax-free, Spain levies a tax on the death of the parents on the consolidation of ownership. The children then pay transfer tax on the value of the usufruct added to their bare ownership. This rate varies by region.
Expert Insight: "The Belgian tax authorities are vigilant. If the bare owner (the child) cannot prove that he/she had his/her own funds for the purchase, the tax authorities consider it a disguised donation."
Split purchase in New Build: watch out for VAT trap
In brief: For new builds in Spain, a split purchase is complex and often refused by promoters. This is due to a clash between VAT (IVA) and Transfer Tax (ITP), which is detrimental to the developer.
The tax conflict
Different rules apply for new construction than for resale:
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Bare ownership: Subject to 10% VAT (IVA) + Stamp duty (AJD - approx. 1.5% to 2%).
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Usufruct: Under Spanish law, the establishment of usufruct is VAT-exempt, making this Transfer tax (ITP) is due.
Read more about the purchase cost of buying usufruct.
Why do promoters refuse to do this? Since usufruct is exempt from VAT, the promoter faces a restriction on his right to VAT deduction. The promoter cannot fully recover the VAT he paid on the construction costs. As a result, most Spanish building promoters will not agree to a split sale unless the buyer compensates the promoter's financial loss.
Read more about the split purchase with a company.
Impact on Belgian inheritance tax (Flanders, Brussels, Wallonia)
In brief: A split purchase in Spain primarily serves to Belgian inheritance tax to be avoided. This is because Spanish property counts to determine the inheritance tax rate in Belgium (progression proviso), which can push you into a higher tax bracket.
Avoiding the "Covered Benefit"
To prevent the taxman from still taxing the property in full in the estate (as a bequest), you need to make the hidden favouritism rebuttal. This means you have to prove that the children "really" paid for the bare property.
This can be done in two ways:
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Own resources: The children show that they had savings or a loan.
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Prior donation: Parents donate funds to children for the purchase.
Crucial timelines by region
Since 1 August 2020, the federal administration (responsible for Brussels and Wallonia) a strict position. Also VLABEL (Flanders) follows a specific line.
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Flanders (VLABEL): A bank donation prior to the notarial deed is in principle sufficient, provided it is registered or proved via packaged unilateral document (such as registered letters). The judgment of the State Council (12 June 2018) confirmed that no gift tax is due if the donation was properly executed.
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Brussels & Wallonia: The federal position requires that the donation be made before signing the compromise (provisional sales agreement).
Opinion: To rule out any discussion with the Belgian tax authorities, we strongly recommend executing and documenting the donation (e.g. bank donation) before you are permanently purchasing in Spain.
Frequently asked questions (FAQ)
Is a split purchase in Spain valid for Belgian tax purposes? Yes, if done correctly. You must be able to prove that the children paid for the bare ownership with their own funds or through a correct, prior donation. If this is not proved, the property will still be taxed in inheritance tax.
How much tax do I pay on the death of the usufructuary in Spain? In Spain, when the usufructuary dies, the bare owner pays tax on the "consolidation of ownership". This is calculated based on the value of the usufruct at the time of purchase.
Can I make a split purchase on a Spanish new-build property? Technically yes, but not always in practice. Since usufruct is subject to transfer tax and bare ownership is subject to VAT, the promoter suffers VAT loss. Promoters often refuse this unless you offset the loss, which can negate the tax advantage.
What is the formula for usufruct in Spain? The formula is 89 - age of the youngest usufructuary. The outcome is the percentage of the value of the property allocated to usufruct (minimum 10%).
About the author: Glenn Janssens is a lawyer specialising in Spanish real estate transactions and tax regulations. Since 2017, he has been helping Belgian and Dutch individuals and entrepreneurs to safely purchase and structure real estate in Spain. He guides files from A to Z: from due diligence, ownership and tax control to estate planning and optimisation for residents and non-residents. Thanks to his years of experience, hundreds of handled files and focus on transparent communication, Glenn makes complex Spanish legislation understandable and practically applicable for every property buyer
Last update: December 2025
