Many owners over 65 have the same problem: a valuable home and a small pension. Selling the bare ownership (nuda propiedad) or arranging a property annuity turns the home into income without moving out. Done well it is a great tool; done badly, a source of regret.

How it works

You keep the lifetime usufruct — the right to live in (or rent out) the home for life — and sell the bare ownership. The buyer pays today: a lump sum, a monthly annuity for life, or a mix. Everything is signed before a notary and registered.

How much you receive

Less than market value: the buyer discounts the usufruct, which depends on your age (Spanish tax rules value it at 89 minus your age, minimum 10%). The older you are, the more you receive — which is why these deals make sense from age 70-75.

The over-65 tax advantage

If you sell your main home aged over 65, the capital gain is exempt from Spanish income tax. Reinvesting proceeds of other property into an insured lifetime annuity can also qualify for exemption (up to €240,000). Generous — but the paperwork and deadlines matter.

Risks we watch for

Lowball offers, annuities without inflation adjustment, buyers without proven solvency, and contracts without a termination clause if payments stop. Golden rule: independent valuation first, offers second.

How VITALITY helps

We value the home against real closed sales, calculate the true usufruct value for your age, and only then source and vet solvent buyers — with your family in the room if you wish. Start with a free valuation or tell us your case. Inherited property? See our guide to selling an inherited home.

FAQs

Can I sell my home and keep living in it?

Yes — by selling the bare ownership and keeping a lifetime usufruct, signed before a notary.

How much less than market value will I get?

The discount equals the usufruct value: roughly 89 minus your age, as a percentage. At 75, around 14% — so you receive about 86%.

Do I pay income tax if I sell after 65?

Not on your main home — the gain is exempt. Other property may qualify via the insured-annuity reinvestment route (€240,000 cap). Always confirm with your tax adviser.