“NUDA PROPRIETÀ” AND “USUFRUTTO”

While looking for a property in Italy, you may have bumped into a nuda proprietà for sale and you may have wondered what that was.
In very simple words, in Italy the ownership (piena proprietà) of a house is made by the mere ownership of the house and the use and enjoyment of it.
The mere ownership of the property, without the right to use and enjoy it, is the nuda proprietà, lit. bare ownership.
The right to use and enjoy a property is the usufrutto.

Sometimes people sell the nuda proprietà, keeping the right to use and enjoy the property.
The mere ownership of the property and the right to use and enjoy it will reunite at the passing of the seller who has kept the right to use and enjoy the property.

There are pros and cons in buying a nuda proprietà.
First of all, the price of the nuda proprietà is lower than that of the full ownership. The reduction is made according to the age of the seller: the younger the seller, the lower the price. Usually, old people sell the nuda proprietà.
Ordinary maintenance is on the usufruttuario, i.e. on the person keeping the right to use the property. Also, they are bound to keep the property in good order.

Costs of extraordinary maintenance, instead, are on the nudo proprietario.
The usufruttuario can rent the property out and make an earning. If the property is rented out when the usufruttuario passes away, the tenant can stay in the property for a number of years, paying the rent to the new full owner.
Taxes are also on the usufruttuario and not on the nudo proprietario.

To recap, buying a nuda proprietà can be convenient if you have some money to invest, but it may not be so convenient if you need to use the property in the short term.

Please note: this article is not exhaustive and gives only a brief overview of this institution.

If you need assistance with buying in Italy, please contact us.

 

Barbara De Benedittis Relocation and Legal in Italy