I always keep things honest and straight to the point—no fluff, just facts. Foreign buyers often struggle with the terms ‘nuda proprietà’ and ‘usufrutto’—I’ve explained them countless times.
But here’s the thing: this quirky setup of someone owning the walls and someone else living in them is gaining traction, even with international buyers. It’s an exciting investment opportunity for buyers in some cases and a savvy way to plan the property transfer (and yes, it’s tax-free!). For sellers, it’s a way to free up cash, if no kids are in the picture – or to settle family disputes when the kids can’t stop bickering.
No more wasting time – “Andiamo”!
In a heartbeat
- Nuda proprietà means you own the property, but someone else has the right to live in it—until the usufruct ends. It’s perfect for long-term investors waiting for their turn, while the usufructuary enjoys living in it for life (or a set period).
- Want to avoid hefty inheritance taxes? Nuda proprietà paired with usufruct is the legal loophole of dreams, allowing you to pass on property tax-free while everyone’s still alive.
- Calculating the value? Four factors: the duration of the usufruct, the age of the usufruttuario, the current market value, and legal interest rates.
- And yes, usufruct can be seized if debts pile up—unlike the right of habitation, which offers more protection from pesky creditors.
Nuda Proprietà & Usufrutto: How They Work in Italy
In Italy, civil law allows you to separate a property’s ownership from its actual use. In other countries, the same result is achieved through "Life Estate and Remainder Interest," "Leasehold Estates," or even a "Trust."
Now, let’s dive into the formal definitions.
Nuda proprietà (bare ownership) refers to owning a property without the right to use it directly. On the other hand, usufrutto (usufruct) is the right to use someone else’s property.
The usufructuary (the user) can live in the property, rent it out, and benefit financially from it for life or a specified period.
This arrangement creates two key players: the usufruttuario, who keeps living in the house, and the nudo proprietario, who technically owns it but can only use it once the usufrutto ends. Sometimes, the usufruct is temporary and not for life.
In simple math:
Nuda proprietà + Usufrutto = Full Ownership
Once the usufrutto ends, the nuda proprietà becomes full ownership.
Benefits for Usufruttuario and Nudo Proprietario
From my 15 years of experience, I’ve found that nuda proprietà/usufrutto works well in these cases:
- Elderly without heirs: They sell their property but keep living in it and enjoying the income until they pass away.
- Parents with quarrelsome heirs: It’s a way to avoid the inevitable battles over how to use the family home. Unlike money, a house isn’t easy to split.
- Tax-free donation: But hold on, I'll explain that better in the next section.
Donation vs Nuda Proprietà
Another clever use of nuda proprietà is in combination with a donation, like from a parent to a child. A pure donation is subject to the dreaded inheritance tax (which is lower in Italy than the rest of Europe, but that’s another story). Enter nuda proprietà, the perfect loophole!
If a father buys a house and assigns the nuda proprietà to his child, keeping the usufrutto for himself until he passes, it’s a win-win. The father manages his assets while alive, skipping the need for a will, and the child inherits the property without inheritance tax and barely any fiscal impact. In fact, when the elderly usufruttuario passes away, the child becomes the full owner without additional costs—just a small fee for the land registry paperwork, which is only a few hundred euros.
Why Nuda Proprietà is a smart investment option
Investing in nuda proprietà makes sense for long-term buyers who expect property values to rise . The value of nuda proprietà is appreciated for two reasons: a positive market trend and, somewhat morbidly, the advancing age of the usufruttuario (the person who retains the right to live in the property).
On the flip side, selling nuda proprietà is appealing to those who need immediate liquidity but want to keep living in their home. It’s a clever way to access cash without uprooting from a familiar place.
In my humble opinion, the best deal is for the nudo proprietario (the buyer), who essentially locks their savings into what is arguably the “best safe in the world”—real estate. Sure, the investment becomes more effective the quicker the usufruttuario passes away (yes, it’s a harsh truth, but we’re talking about nuda proprietà here). However, if the usufruttuario remains in excellent health, there’s still the option to sell the nuda proprietà itself.
Now, this example is purely illustrative, and we’d need to see how the real estate market performs. But even in a pessimistic scenario, investing in nuda proprietà could still be more profitable than many other investment forms.
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How to calculate the value of nuda proprietà (bare ownership)
The value of nuda proprietà is determined by four key factors:
- Duration of Usufruct: Usufruct can be for life (vitalizio) or for a fixed period of time. The length of this usufruct directly impacts the value of nuda proprietà. The longer the usufruct, the lower the value of nuda proprietà.
- Age of the Usufructuary (if usufruct is for life): The younger the usufructuary, the lower the value of nuda proprietà, because they are expected to live longer. On the contrary, if the usufructuary is older, the nuda proprietà will be worth more.
- Market Value of the Property: This is the starting point for any calculation. The current market value must be estimated accurately, considering location, size, condition, and specific property features.
- Legal Interest Rate: This rate calculates the present value of the usufruct and nuda proprietà over time. Essentially, it reflects how much money today would be worth if received in, say, 10 years.
Fiscal value vs Market value
A crucial distinction to make is between fiscal value and market value. The fiscal value remains the same regardless of the usufructuary's health, because it’s based solely on their age. However, the market value can fluctuate significantly depending on their estimated life expectancy.
For example, imagine an 80-year-old usufructuary in good health versus one in severe condition. The fiscal value remains the same (since they’re both 80 years old), but the market value could vary dramatically due to the difference in expected lifespan. It’s a bit of a harsh reality, but it’s an important concept to grasp.
Coefficients of adjustment Table for 2024
To calculate the value of nuda proprietà, you use a coefficient published annually by the Italian Ministry of Finance, which adjusts the value based on the usufructuary's age. Here’s a practical example:
Let’s say you’re interested in a property with a market value of €1,000,000, and the usufructuary is 83 years old. According to the following table, the life usufruct at age 83 is worth 20% of the property’s value, leaving the remaining 80% as the value of nuda proprietà.
Quick math: The nuda proprietà would cost you €800,000.
Nuda Proprietà & Usufruct Value Table (Italy Real Estate)
| USUFRUCTUARY AGE |
% LIFETIME USUFRUCT |
% BARE OWNERSHIP |
| 0 - 20 years |
95% |
5% |
| 21 - 30 years |
90% |
10% |
| 31 - 40 years |
85% |
15% |
| 41 - 45 years |
80% |
20% |
| 46 - 50 years |
75% |
25% |
| 51 - 53 years |
70% |
30% |
| 54 - 56 years |
65% |
35% |
| 57 - 60 years |
60% |
40% |
| 61 - 63 years |
55% |
45% |
| 64 - 66 years |
50% |
50% |
| 67 - 69 years |
45% |
55% |
| 70 - 72 years |
40% |
60% |
| 73 - 75 years |
35% |
65% |
| 76 - 78 years |
30% |
70% |
| 79 - 82 years |
25% |
75% |
| 83 - 86 years |
20% |
80% |
| 87 - 92 years |
15% |
85% |
| 93 - 99 years |
10% |
90% |
Just a reminder: these tables are updated yearly, reflecting factors such as increasing life expectancy. So always check the latest data before making any decisions.
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Types of Usufruct
Until now, we've been discussing usufruct as a one-on-one relationship between the usufruttuario (the person living in the property) and the nudo proprietario (the property owner). However, reality is often more complex, and there are cases where multiple usufructuaries are involved.
Picture a lovely elderly couple selling the nuda proprietà of their home to secure financial comfort for the rest of their lives. This falls under what we call collective usufruct, where several people enjoy the rights to a single property. Here are the main types of collective usufruct:
- Joint Usufruct (Usufrutto Congiuntivo): Two (or more) people share the same property. When one passes away, their right to the property ceases, and the nudo proprietario gains full ownership of that half. The surviving usufructuary continues enjoying their half.
- Accrescent Usufruct (Usufrutto con Accrescimento): In this case, if one usufructuary passes away, their share transfers to the surviving usufructuary. The nudo proprietario does not gain full ownership of that half until all usufructuaries pass away.
- Successive Usufruct (Usufrutto Successivo): Usufruct rights can be passed along to other people. When the first usufructuary dies, the right continues with the second, and so on.
Usufruct vs. Right of Habitation
You might have seen some websites (I’ll be polite and not name them) confuse usufruct with the right of habitation. But they’re far from the same thing.
The right of habitation refers to a person’s right to live in a property, but only to meet their personal and family needs. It’s non-transferable—no renting it out or selling the right. The only option is to renounce it.
The key difference is that usufruct gives a person the right to use the property for a set period (or for life) and this right can be transferred to third parties, either through rental or even sale. Legal entities can also hold usufruct, though the term can't exceed 30 years.
Both rights can be negotiated when selling a property, and all details must be clearly stated in the contract.
So, which is better: right of habitation or usufruct?
It depends on the beneficiary’s financial situation. The right of habitation is more limiting—you’re essentially stuck living in the property for the rest of your life, unless you choose to give up the right. But here’s a silver lining: the right of habitation cannot be mortgaged or seized. If you’re deep in financial trouble, your creditors can’t take the house from you.
On the other hand, usufruct is more flexible but also more vulnerable. It can be seized in case of debt, making it a less secure option if finances get rocky.
Should you consider Nuda Proprietà as a foreigner?
For foreign investors, nuda proprietà presents an attractive opportunity in two key scenarios:
- Long-Term Investment: If you’re a foreigner with a long-term vision and no immediate need to use the property, nuda proprietà is a fantastic option. It’s especially ideal for those “unique” properties whose value is expected to rise over time. You can secure a valuable asset at a lower price, while waiting for full ownership once the usufruct ends.
- Estate Planning: Buying nuda proprietà is a smart strategy for future planning. Imagine leaving a legacy to your children without them having to face hefty legal or tax complications. Nuda proprietà allows you to separate the right to use the property from legal ownership, making inheritance and estate management much smoother.
Now, when is the best time to sell nuda proprietà?
There are two prime moments to sell: during times of economic crisis, when liquidity is needed, or for elderly sellers who prefer to distribute the proceeds of the sale among their family while still retaining the right to live in the property for the rest of their life. It’s a win-win for both parties!
Statistical Data on Bare Property
From an article published by Fiaip [1] here are some key statistics on the growing interest in nuda proprietà:
- Rising Interest: Interest in nuda proprietà has increased by 34% since 2019. The most significant growth has been in Central Italy (+48%) and the South and Islands, where demand has doubled.
- Prices:
- Average Price: The average price for a home sold as nuda proprietà is currently around €2,267 per square meter.
- Milan: In Milan, the price per square meter for nuda proprietà has exceeded €4,200.
- Rome: In Rome, the average price is approximately €2,700 per square meter.
- Buyer Profile: Typically, buyers are middle-aged, affluent individuals who purchase without a mortgage. These buyers view nuda proprietà as a long-term investment, particularly in a climate of rising inflation.
- Seller Profile: Sellers are usually elderly, with an average age of 80 years, living alone. They sell to access liquidity needed to maintain their living standard or cover aging costs, such as home care assistance.
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FAQ
Who Pays IMU (Italian Property Tax) on Nuda Proprietà?
Under Italian law, the usufruttuario (life tenant) must pay IMU property taxes unless they live in the property, in which case they may be exempt.
Who pays the condominium fees?
The usufruttuario is responsible for all ordinary condominium expenses, such as maintenance and upkeep. If extraordinary expenses arise due to negligence or lack of ordinary maintenance, these too must be covered by the usufruttuario (art. 1004 del Codice Civile [2]). However, in general, extraordinary condominium expenses are the responsibility of the nudo proprietario.
What happens if the nuda proprietà is foreclosed?
In the event of foreclosure on nuda proprietà, the forced sale of the property will apply only to the nuda proprietà, while the usufruttuario’s rights remain intact, provided the usufruct was registered before the mortgage and subsequent foreclosure. The usufruttuario can continue using the property even if the nudo proprietario changes.
Important note: unlike the right of habitation, usufruct can be seized.
What to do upon the death of the usufruttuario?
Upon the death of the usufruttuario, their right to use the property ceases, and the nudo proprietario can request the consolidation of full ownership by filing a claim with the land registry (Catasto).
What happens if there are two usufruttuari and only one dies?
In this case, the nudo proprietario becomes the full owner of 50% of the property, while the surviving usufruttuario retains their right to use the property. The nudo proprietario must wait for the death of all usufruttuari to gain full ownership.
Can nuda proprietà be sold?
Yes, the nudo proprietario can sell the nuda proprietà to third parties without the consent of the usufruttuario, as long as the usufruttuario’s rights are respected according to the previously established terms. Both the sale of nuda proprietà and usufruct require the involvement of a notary to formalize the sale.
Can the usufruttuario rent out the property?
Yes, the usufruttuario can rent or sell their usufruct to third parties, as long as it complies with the predetermined usufruct terms.
When does usufruct end?
Usufruct can be terminated by:
- Expiration of the agreed period or the death of the usufruttuario.
- If the usufruttuario purchases the nuda proprietà, consolidating full ownership.
- Voluntary renunciation of the usufruct.
- Destruction of the property.
- Extended non-use (e.g., if the usufruttuario doesn’t use the property for a certain number of years).
Elena Manzhos: Mother of two beautiful children, wife, and real estate agent for over 15 years. More than 20 years ago, I moved to Italy from Eastern Europe. I have always had a deep-seated passion for houses; as a child for the Barbie house, and now as a real estate professional, my love for luxurious properties is unwavering.
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