At Welex Lawyers and Advisors, we work every day to help you make smart decisions about your assets. We know that concepts such as lifetime usufruct can seem complex, but a good understanding of them can make a big difference in matters such as inheritance, gifts, or tax planning.
That is why we want to explain it to you in the clearest, most practical, and useful way possible.
What is a life-long usufruct in Spain?
Lifetime usufruct is the right of a person (the usufructuary) to use and enjoy an asset — such as a home — for the rest of their life, even if they are not the owner.
It is a very common concept in estate planning and can offer significant advantages if used correctly.
How is its value calculated in Spain?
The value of a life-long usufruct is a percentage of the total value of the asset and depends on the age of the usufructuary.
Key points:
- The maximum is set at 70% of the value of the asset (for those under 20).
- From there onwards, it decreases by 1% for every year of age.
- It can never be less than 10% of the value of the asset.
Quick formula
To calculate it easily:
Usufruct (%) = 89 – age of the usufructuary
Always applying:
- 70% maximum
- 10% minimum
Practical examples
Example 1
Age: 32
Property value: €150,000
- 89 – 32 = 57%
- €150,000 × 57% = €85,500
Example 2
Age: 82
Value of the property: €150,000
- 89 – 82 = 7% → the minimum of 10% applies
- €150,000 × 10% = €15,000
Example 3
Age: 18
Property value: €150,000
- 89 – 18 = 71% → the maximum of 70% applies
- €150,000 × 70% = €105,000
Turn this information to your advantage
Knowing the value of a life-long usufruct is not only useful but can help you optimise your tax position and make more profitable decisions when managing your assets.
At Welex Lawyers and Advisors, your English-speaking office, we examine your case on an individual basis so that you can take full advantage of all the legal and tax opportunities available to you. If you are considering an inheritance, a gift, or any transaction involving usufruct, please contact our firm, Welex. We will help you get it right from the start and with complete peace of mind.
Maite Arcos, lawyer at Welex with an outstanding track record in real estate and inheritance law, shares her knowledge of Spanish legislation in this blog.
