When the usufructuary dies, the bare owner pays no plusvalía tax on the usufruct that comes to an end: full ownership is reunited without any transfer taking place. If, however, the usufruct is gifted or sold to the bare owner during the usufructuary lifetime, that operation is subject to plusvalía, paid by the person who receives the right when it is free of charge or by the seller when there is a price.
The Spanish Directorate General of Taxes (DGT) has confirmed this in binding ruling V0765-26, concerning a mother who had given her son the bare ownership of several properties and later wanted to hand over the usufruct as well. For families who hold a Costa del Sol home split between parents and children, the difference between waiting and bringing the operation forward has clear tax consequences.
What does consolidating full ownership mean?
Full ownership of a home can be split into two rights: the usufruct, which allows the holder to use the property and keep any rental income, and the bare ownership, which is title without that use. This split is very common in inheritances, in gifts from parents to children and when an owner sells the bare ownership in order to keep living at home.
Consolidating full ownership means that both rights end up in the hands of a single person again, usually the bare owner. This can happen in several ways, and the plusvalía tax does not treat them all the same.
Is plusvalía tax due when the usufructuary dies?
No. Under article 104 of the Local Finance Act, the tax on the increase in value of urban land applies to two things: the transfer of ownership and the creation or transfer of rights of enjoyment such as usufruct. The death of the usufructuary fits neither of them.
Article 513 of the Spanish Civil Code lists the death of the usufructuary as one of the causes that bring a usufruct to an end. The right does not pass to anyone: it simply disappears, and the bare ownership automatically recovers the use it lacked. The same happens when a fixed-term usufruct expires. With no transfer there is no taxable event, and the town hall cannot charge plusvalía for that consolidation.
What if the usufruct is gifted or sold during the usufructuary lifetime?
Here the outcome changes. If the usufructuary hands the right over to the bare owner before dying, there is a transfer of a right of enjoyment, and that is subject to plusvalía tax. The tax falls due on the date of the operation, under article 109 of the Act, not on the date of death.
Who pays depends on whether there is a price. In a gift, the taxpayer is the person who receives the usufruct, normally the son or daughter. In a sale, the seller pays; but if the seller is an individual who is not resident in Spain, the buyer acts as a substitute and must pay the tax, which matters a great deal on the Costa del Sol, where many owners live abroad.
Renouncing the usufruct in favour of the bare owner is usually treated for tax purposes as a gift, so plusvalía should be expected here as well. Before signing, it is worth confirming with a tax adviser how the town hall will classify it.
Summary table: who pays in each case
| How full ownership is reunited | Is plusvalía tax due? | Who pays |
|---|---|---|
| The usufructuary dies | No, the usufruct ends | Nobody |
| A fixed-term usufruct expires | No, it is also an extinction | Nobody |
| The usufruct is gifted to the bare owner | Yes, on the date of the gift | The person who receives the usufruct |
| The usufruct is sold to the bare owner | Yes, on the date of the sale | The selling usufructuary, or the buyer if the seller is not resident in Spain |
| The usufruct is renounced in favour of the bare owner | Usually yes, as a gift | The person who receives the usufruct |
These rules are national and apply in the same way in Malaga, Marbella, Estepona or any other town. What changes from one town hall to another are the coefficients, the tax rate and the reliefs set out in each local tax bylaw.
How much is paid when a usufruct is transferred?
The tax base is not the full cadastral value of the land, only the share that corresponds to the usufruct. Article 107 of the Act refers to the rules of the Transfer Tax: a lifetime usufruct is worth 70% of the property if the usufructuary is under 20, and one percentage point less for each additional year of age, with a minimum of 10%. In practical terms, the percentage equals 89 minus the age of the usufructuary.
An illustrative example: a flat whose land has a cadastral value of €40,000 and a 74-year-old mother holding the usufruct. Her usufruct is worth 15%, that is €6,000. The town hall then applies its coefficient for the number of years of generation and its tax rate, which cannot exceed 30%. That is why the bill is usually much lower than on a sale of full ownership.
If it can be shown that the land has not gained value, or that the real gain is lower than the figure calculated with coefficients, the law allows the owner to ask for no tax to be charged or to pay only on the real gain.
What happens to plusvalía when the home is sold later?
The fact that consolidation on death is not taxed does not make plusvalía disappear. When the new full owner sells, they will pay plusvalía on the sale like any other seller. Under article 107.4, in cases that are not subject to the tax, the period of generation is counted from the previous time the tax fell due, which in practice is usually the acquisition of the bare ownership. With a maximum of 20 years, the clock does not restart on death.
Besides plusvalía, these operations involve other taxes that are calculated separately: Inheritance and Gift Tax in Andalusia for the person who receives, and Spanish income tax or non-resident tax for whoever sells at a gain.
What to do before signing
- Check how full ownership was split and on what date: that date sets the period of generation for the next sale.
- Before gifting or selling the usufruct during the usufructuary lifetime, compare the tax cost of doing it now with that of waiting for it to end naturally.
- If the person selling the usufruct is not resident in Spain, the buyer should expect to pay the plusvalía tax.
- Read the tax bylaw of the town hall where the property is located: coefficients, rate and reliefs vary between towns.
If you are planning to sell a home with a usufruct or bare ownership on the Costa del Sol, EVS Property can help you value it and coordinate the operation with your tax adviser.
FAQ
Does the bare owner pay plusvalía when the usufructuary dies?
No. The death of the usufructuary ends the usufruct without transferring it, so there is no taxable event and the town hall cannot charge plusvalía for that consolidation.
Who pays plusvalía if a mother gifts the usufruct to her son?
The son, because in transfers free of charge the person who receives the right pays. The tax falls due on the date of the gift.
How is the value of the usufruct calculated for plusvalía?
With the rules of the Transfer Tax: for a lifetime usufruct, 89 minus the age of the usufructuary, as a percentage, with a maximum of 70% and a minimum of 10% of the cadastral value of the land.
From when are the years counted when selling after consolidation?
If consolidation happened on death and was not taxed, they are counted from the previous time the tax fell due, usually the acquisition of the bare ownership, with a maximum of 20 years.
What next? The most useful thing after reading is to look at the real market: browse properties by city or tell us on WhatsApp what you are looking for — area, budget, timing — and we will prepare a tailored selection, with no obligation.
You may also find useful: sell your property invest on the Costa del Sol free valuation monthly price report
