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Buy in bare ownership and usufruct

This is a formula that is becoming more and more successful with investors for two main reasons:

1) In the field of inheritance

Acquiring the usufruct of an apartment by a parent and the bare ownership by the children offers them the opportunity to become full owners of the property in the event of the death of the parent and without having to pay one euro of inheritance tax.

 

2) In the field of taxation

In certain cases, it is up to you to acquire the bare ownership in your name and sell the usufruct to a company (e.g. a management company).

This structure is very clearly framed by the tax rules and is perfectly understandable by everyone. At the end of the usufruct period you can therefore transfer your assets from the company to yourself as a private person!

As an investor you have to keep in mind a very important point: ask an experienced tax expert for advice in order to stay within the imposed tax scheme. We can refer you to experts if you wish.

An acquisition by dismemberment – subsoil and emphyteusis

This type of dismemberment of property took longer to integrate into the "reasonable man" property management compared to the previous formula, although it presents the same type of advantages.

Until recently, one of the reasons was undoubtedly the absence of "ruling" (prior tax agreement).

Without going into detail, the principles are identical to a dismemberment of "usufruct - bare ownership" property but offer a substantial advantage: the right of emphyteutic lease is only affected by a rate of 2%.

Since it represents the major part of the price paid, you could avoid paying 12.5% of registration fees on ± 95% of the price, by respecting the rules imposed by tax authorities.

But, any medal has a flip side which is a major disadvantage: the minimum legal duration of an emphyteutic lease must be between 27 and 99 years. So, you can only consider it in the very long term.

Considering the relative complexity of this type of structure, we can only invite you once again to consult one of our specialists in that field, in order to study this possibility together.

Considering investing in real estate? Ask your questions to one of our specialists.

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