Introduction
Purchasing the right of bare ownership of real estate can have certain advantages for the buyer (even foreign). These certainly include the lower purchase price and lower indirect taxes to be incurred at the time of purchase, as well as the lack of need to incur in full direct taxes.
The purchase of bare ownership, is seen as a real estate investment by some, especially those who do not have an immediate need to enjoy the property.
Bare ownership: definition
Bare ownership means the right of ownership that is emptied of part of its content, since the enjoyment of the property is in the hands of a different party.
To give an example of the above: Titus holds the right of bare ownership over the asset Alfa, and Caius (a different subject from Titius) holds a right of enjoyment over the same asset Alfa. The holder of the right of bare ownership is also called the bare owner.
Bare ownership: the content
The bare owner has the right of ownership over the immovable property, but unlike the full owner who can enjoy and dispose of the property, the bare owner can only exercise the right of disposition, thus being able to sell the real estate, but not being able to enjoy it until the usufruct is extinguished.
In addition, the nude owner can demand that the different party holding the lesser real right (e.g., the usufructuary who has the right to enjoy the property itself), use the property with the diligence of a good family man, that in Italy determs the average diligence that can be expected of any averagely shrewd person.
The bare owner may deny the holder of the minor real right to change the original economic use of the property. In the event that this happens, the bare owner can seek compensation for damages and that the state of the property be restored.
The difference with full ownership
The right of full ownership, in our legal system, is regulated by the Constitutional Charter, in Article 42, in the mind of which “[…]private property is recognized and guaranteed by law, which determines the ways of acquisition, enjoyment and limits,” and also by the Civil Code, in Article 832, which regulates the content of the right of full ownership as the right to enjoy and dispose of the property fully and exclusively, limited to what is allowed by our legal system.
Therefore, it is evident how both the bare owner and the full owner have the right to dispose of the property, but only the latter also has the right to enjoy it.
Bare ownership and tax aspects
A brief mention of the regulation of tax aspects and taxes when it comes to bare ownership is useful.
Indirect taxes (at the time of purchase)
Even when purchasing bare ownership there are tax aspects to be identified.
Indirect taxes are paid by the purchaser (bare owner) according to ordinary rates, and thus:
– in case of purchase of the first house: 2% on the purchase price or cadastral value (in case of value price);
– in case of purchase as second house 9% on the purchase price or cadastral value (in case of value price);
It should be considered, however, that the taxable base on which to make the calculation is reduced by the value of the usufruct.
Frequently asked questions
Here are some of the most frequently asked questions when a person intends to purchase a bare property.
1. I am a foreign citizen, can I purchase real estate as a bare owner?
Yes. Obviously this is allowed if you meet all the conditions for carrying out real estate transactions in Italy and if all the necessary documentation is present.
2. Can I sell the property before the usufruct has expired?
Yes, the bare owner has the power to dispose of the real estate, and therefore also to sell it. Be careful, however, because only the right of bare ownership (and not full ownership) can be sold.
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