# Bare ownership: split-ownership real estate investment — Complete guide (2026) \| Handee > Complete 2026 guide to bare ownership investment: split ownership, how it works, taxation (IFI, local taxes), official scale (CGI Art. 669), expenses (Civil Code), risks and checklist. ## Overview Buying a property in bare ownership means acquiring the right to dispose of the property (sell, give, bequeath) while a third party holds the usufruct (the right to use the property and collect its income). When the usufruct ends, full ownership is automatically reconstituted in favor of the bare owner. Bare ownership should be viewed as a long-term investment: you accept the absence of immediate income in exchange for a discounted purchase price and a "deferred full ownership" objective. Full ownership Combines the 3 attributes: using the property, collecting the income and disposing of the property (selling it, giving it…). Usufruct The right to use the property and collect its income (e.g. rents), without owning it. The usufruct is either temporary (fixed term) or for life\. Bare ownership The right to dispose of the property (sell the bare ownership, give, bequeath), but with no use and no rents while the usufruct exists. Key point: during the split ownership, the usufructuary has the use / the income, and the bare owner has the "deferred ownership". When the usufruct ends, full ownership is automatically reconstituted in favor of the bare owner. ## How a bare ownership investment works ### A. The most common arrangement (temporary usufruct) You buy the bare ownership, and a usufructuary (often an institutional landlord in some programs) holds the usufruct for a period set in the contract. - During the usufruct: you receive no rents and do not occupy the home. - Management: the usufructuary handles occupancy/rental management and collects the rents. - At maturity: you automatically recover full ownership (with no additional "purchase" formality). ### B. The estate planning arrangement (life usufruct) Often used for inheritance planning: a person keeps the usufruct for life and transfers the bare ownership (gift, inheritance…). - The tax value of the usufruct / bare ownership depends on the age of the usufructuary (statutory scale). - Full ownership is in principle reconstituted upon the usufructuary's death, without new taxation "as a result of the reunion". ## Benefits and limits: who is it relevant for? Common benefits - Potentially reduced purchase price (a discount is often mentioned depending on the duration/structure of the arrangement). - Rental management delegated to the usufructuary during the period. - Running expenses generally borne by the usufructuary. Limits - No rents during the usufruct (no cash flow). - Long-term investment: lower liquidity (resale possible, but depends on the market). - Legal/contractual risk if the arrangement is poorly framed (allocation of expenses, works, insurance…). Typical profiles - Building wealth over a 10–20+ year horizon. - Preparing for retirement (recovering full ownership later). - Wealth transfer (life usufruct split ownership). ## Who pays what? (expenses, works, local taxes) The civil law logic: the usufructuary bears the maintenance repairs, while the bare owner bears the major repairs, unless the major repairs are caused by the usufructuary's failure to maintain the property. Topic In principle Official basis (summary) Maintenance repairs Usufructuary The usufructuary is only liable for maintenance repairs. Major repairs (structural work) Bare owner Major repairs are exhaustively listed (walls, vaults, beams, entire roofs, dikes, retaining/boundary walls…). Property tax (TFPB) Usufructuary (taxed in the usufructuary's name) In case of usufruct, the property tax is assessed in the usufructuary's name (CGI Art. 1400-II, BOFiP doctrine). Income / rents Usufructuary The usufructuary may collect the income; the bare owner may not, during the usufruct. Caution: "in principle" means you should always check the deed (contractual allocation of certain costs, co-ownership, insurance, etc.), within the limits of applicable law. ## Taxation (2026 guidelines): income tax, IFI, gift/inheritance ### A. Income tax With bare ownership, you receive no rents during the usufruct: there is generally no property income to declare in respect of the bare ownership. - The usufructuary collects the income and bears the corresponding taxation, according to their situation. - Your return logic is rather wealth-based (future value / recovery of full ownership). ### B. IFI (real estate wealth tax) In principle, the usufructuary is taxed under the IFI on the full-ownership value of the property; the bare owner has nothing to declare, subject to the exceptions provided by law. - Principle: the IFI targets the usufructuary (full-ownership value), a logic recalled by the administrative doctrine. - Exceptions: certain "statutory" usufructs or specific situations may lead to an allocation (limited cases). ### C. Gift / inheritance: taxable base and official scale The tax value of the bare ownership and the usufruct is set by a statutory scale (CGI Art. 669), notably according to the usufructuary's age for a life usufruct. - The scale is used to determine the taxable value for certain transfers (registration duties, gifts…) - For a fixed-term (temporary) usufruct, Article 669 provides a specific valuation method (23% per 10-year period, without fractions, capped at the life usufruct value). These guidelines are those set out in the official texts; in practice, each transaction must be validated by a notary / advisor, as taxation also depends on the exact nature of the usufruct (life, temporary, statutory, contractual…) and your situation. ## Official tax scale (CGI Art. 669) Table allocating value between usufruct and bare ownership (life usufruct), and the fixed-term usufruct rule. Age of the usufructuary (life usufruct) Value of the usufruct Value of the bare ownership Under 21 90% 10% Under 31 80% 20% Under 41 70% 30% Under 51 60% 40% Under 61 50% 50% Under 71 40% 60% Under 81 30% 70% Under 91 20% 80% Over 91 10% 90% Fixed-term (temporary) usufruct A usufruct created for a fixed term is valued at 23% of the full-ownership value for each 10-year period of its duration (without fractions and regardless of age), without exceeding the value of a life usufruct. Official simulator For a quick estimate, you can use the official simulator (Service-Public), which is based on the tax scale. Open the official simulator ## Risks & points to watch "Market" risk The future value of the property is not guaranteed. Bare ownership is a long-term investment: performance will depend on the real estate market when you obtain full ownership. "Works" risk Major repairs remain, in principle, the bare owner's responsibility. Check the planned level of maintenance and the contractual allocation in a co-owned building. "Contract / structure" risk The usufructuary's quality, guarantees, insurance, restoration rules at expiry, clauses on expenses and co-ownership: everything hinges on the deed. Tip: have the draft deed (or the program documentation) reviewed and ask for a clear "who pays what" table (co-ownership charges, works, insurance, taxes), with references to the clauses. ## Checklist before buying Legal - Nature of the usufruct (temporary / life) + duration/term - Restoration clauses at expiry - Rules for selling the bare ownership (if needed) Financial - Bare ownership price vs full-ownership value - Objective (resale, future occupancy, retirement, transfer) - Scenarios: market, works, vacancy on the usufructuary side (if relevant) Taxation - Local taxes: taxed in the usufructuary's name in principle (property tax) - IFI: taxed on the usufructuary's side in principle (subject to exceptions) - Transfer: tax scale (CGI Art. 669) + notary strategy ## Other investment solutions As a complement or an alternative to bare ownership, other schemes can help you invest in real estate. LMNP (non-professional furnished rental) Furnished rental: tax advantages, tax regimes, conditions and obligations. Complete guide with official sources. Learn more → Unfurnished rental Unfurnished rental: the classic buy-to-let investment. Taxation, advantages, obligations and differences with furnished rental. Learn more → Serviced furnished rentals Professional furnished rental: definition, conditions, tax advantages, differences with LMNP, and obligations. Learn more → LLI (intermediate-rent housing) Intermediate-rent housing: a buy-to-let scheme with 10% reduced VAT and a tax credit. Conditions and tax advantages. Learn more → Girardin Girardin scheme: investing in the French overseas territories with a tax reduction. Conditions and tax advantages. Learn more → Denormandie Denormandie scheme: a tax reduction for buying and renovating properties in certain areas. Learn more → Historic Monument Investing in a Historic Monument: exceptional tax advantages for heritage restoration. Learn more → ## Disclaimer The information in this article comes from the official sources referenced in the "Official sources" section at the bottom of the page. Handee cannot be held liable for any errors, omissions or interpretations of the information presented. If in doubt or for any question specific to your situation, we invite you to consult the official sources mentioned directly (Service-Public.fr, economie.gouv.fr, Légifrance, BOFiP, etc.) or to contact a qualified professional (notary, tax advisor, chartered accountant). The taxation of bare ownership (IFI, income tax, gift/inheritance) depends on the exact nature of the usufruct (life, temporary, statutory, contractual…) and your situation. Eligibility conditions, scales and rules may change. Only the official sources are authoritative. ## Frequently asked questions Que faut-il vérifier avant de choisir Bare ownership: split-ownership real estate investment — Complete guide (2026) ? Complete 2026 guide to bare ownership investment: split ownership, how it works, taxation (IFI, local taxes), official scale (CGI Art. 669), expenses (Civil Code), risks and checklist. Vérifiez ensuite les conditions d'éligibilité, le coût global, l'horizon de détention et les documents contractuels propres à votre projet. Comment utiliser ce guide pour préparer son projet ? Utilisez ce guide pour comparer les critères qui changent réellement votre décision, puis vérifiez les références officielles et les conditions applicables à votre situation avant de vous engager. ## Official sources Les informations de cet article sont reliées aux références publiques utiles pour vérifier les conditions et les démarches. - Usufruct, bare ownership, full ownership - Service-Public.fr Official definitions of the different property rights - Investing in bare ownership - economie.gouv.fr Official guide to the advantages and limits of bare ownership investment - Usufruct tax scale - Service-Public.fr Official simulator to estimate the value of the usufruct and the bare ownership - CGI Art. 669 - Usufruct/bare ownership scale - Légifrance Article 669 of the General Tax Code: official allocation scale - IFI and split ownership - BOFiP Tax doctrine: wealth tax (IFI) in case of split ownership - Property tax and usufruct - BOFiP Tax doctrine: property tax in case of usufruct (CGI Art. 1400-II) - Civil Code Art. 605 - Maintenance repairs - Légifrance Article 605 of the Civil Code: repairs borne by the usufructuary - Civil Code Art. 606 - Major repairs - Légifrance Article 606 of the Civil Code: major repairs borne by the bare owner ## HTML / llms.txt - [HTML](https://handee.fr/en/achat-logement/investissement/nue-propriete) - [llms.txt](https://handee.fr/en/achat-logement/investissement/nue-propriete/llms.txt)