How to declare bare ownership of a property — idealista/news

2023-05-26 12:23:46

Owning the bare property of a property is an increasingly frequent assumption. It is a very useful legal tool for elderly people who wish to receive a supplementary income to their retirement and continue enjoying the use of their home as long as they live. The buyer, for his part, manages to access ownership of the property under more advantageous economic conditions. However, to know How is the bare ownership of a home declared in the IRPF It can generate some doubts for both parties. In this article we explain How is the bare ownership of a property taxed? and how to declare it in Income 2022.

Is the bare ownership declared in the Income?

The bare ownership It is not always declared in the Income: this depends on whether we are referring to the case of the bare owner or that of the usufructuary, also taking into account the specific circumstances at each moment. Below we will analyze each case in detail.

Who must declare the bare ownership?

The owner knot (that is, the owner of the thing that does not enjoy its use) will not have the obligation to declare bare ownership acquired while the usufruct continues to exist.

The logic of this criterion is that, as long as the bare owner does not enjoy the right to use the property, he will not be able to obtain income through its exploitation, for example, in the form of rent. Given that the Income Tax taxes precisely the obtaining of income of a different nature during a fiscal year, in this case there will be no income to declare.

As for the usufructuary or seller, the income that he receives as a result of the sale of the bare property, yes they must be declared in the IRPFas well as those that are received from the assignment of their right of use, for example, through a lease.

In the case of the proprietary node, the response to When do you have to declare the bare ownership in the Income 2023 is that it will be necessary to do it when the end of usufruct and full ownership is acquired of the property. The income obtained from the exploitation or sale of the property in these cases does must be reflected in the income statement.

How is the bare ownership of a home declared?

The how to declare bare ownership of the home it depends both on who is obliged to declare it and on their specific circumstances (leasing, own enjoyment of the usufruct, sale of bare ownership…).

How the sale of bare property is taxed in the Income Statement

The sale of the bare property is taxed as a capital gain as long as you are not subject to any of the exemptions that we will see in the next section. However, we should not pay 100% of the reference value used, since the usufruct also has a fiscal value, which is calculated based on the age of the usufructuary and his life expectancy.

This usufruct value must be subtracted from the corresponding sale value to pay taxes on the difference.

Sale of the bare property for people over 65 years of age in personal income tax

As the Treasury recalls, You do not have to declare the capital gain Derived from the transmission, onerous or lucrative, of the habitual residence if you are over 65 years old.

The exemption from the gain applies whether the habitual residence is transferred in exchange for a capital, as if it is in exchange for an income, temporary or for life. The exemption also applies to the transfer of bare ownership of the habitual residence by its owner over 65 years of age, reserving the latter the lifetime usufruct of said residence.

In addition, people in a situation of severe or great dependency, in accordance with the Law for the Promotion of Personal Autonomy and Care for People in a situation of dependency, are also exempt from declaring the capital gain derived from the transfer of their habitual residence. .

Remember that this exemption It only operates in case of transmitting the habitual residence.

How the usufruct is taxed in the income statement

As usufructuary, you must pay taxes on the income obtained as a result of the exploitation or assignment of the right of use, if applicable. For example, in case of leasing the property and obtaining a profit for it.

Treasury explains that:

1. If you lease or transfer the property, you will be obtaining real estate capital returns

To calculate the net return on real estate capital, it must be taken into account that the tax deductible amortization is the one that corresponds to the right of usufruct – article 23.1.b of the Personal Income Tax Law and 14.3 of its Regulations-, which will be:

• Temporary usufruct: Acquisition cost between the number of years of duration.
• Life usufruct: 3% of the acquisition cost paid.

2. If the property is at your disposal and is not leased or assigned, it will be taxed as Real Estate Income Imputation.

2% is applied in general and this percentage must be applied to the cadastral value of the property that appears on the IBI receipt for the year.

It will be taxed at 1.1% in the following cases:

• Properties whose cadastral values ​​have been reviewed, modified or determined through a general collective valuation procedure, in accordance with cadastral regulations and have entered into force in the tax period or within the ten previous tax periods.
• Properties that, on the date of accrual of the tax (normally, December 31), lacked a cadastral value or this had not been notified to the owner.

As in the previous case, the capital gain will be calculated by subtracting from the market value of the property, the value of the right of bare ownership.

How does bare ownership affect the Income statement?

The Bare ownership does not have to affect your Income Statement if you are the bare owner and, therefore, do not obtain income related to the use of the property.

If you’re usufructuaryyou must reflect in your statement the income obtained in relation to said usufruct, whatever the type.

What taxes are paid on the bare ownership of a home?

The taxes paid by the bare owner are different from those paid by the usufructuary:

• He property bare seller will presumably obtain a capital gain that, as we have seen, will be subject to income taxunless it is exempt. So, You must pay taxes for life or temporary annuities obtained or for the single payment of bare ownership. He will also be responsible for paying the municipal capital gains when the sale takes place, if there is a profit. On the other hand, the seller or usufructuary is the one who usually pays the IBI.
• He bare property buyer must pay the Property Transfer Tax (ITP), both at the time of the acquisition of bare ownershipas at the time of extinction of the right of the usufructuary.

How bare ownership is taxed in Inheritance Tax

The consolidation of the domain by the bare owner When the usufruct is extinguished, as well as obtaining the usufruct, they will be taxed in the Inheritance or Donation Tax only when the transfer is for profit or free of charge, that is, when there is no consideration or price.

This means that Only when there is succession or donation of usufruct or bare ownership will this tax be paidtaking into account the exemptions and reductions that exist in each autonomous community.

Provided that the dismemberment of the domain had been produced by an onerous transfer, that is, in exchange for a price, the operation will be taxed by the Tax on Patrimonial Transfers and Documented Legal Acts.