Bare ownership in Italy can be a legitimate long-term investment for a foreign buyer, but it is usually unsuitable for someone who needs immediate occupation, immediate rental income or certainty about when the property will become available.
When a buyer purchases bare ownership, known in Italy as nuda proprietà, they acquire ownership of the property while another person retains usufruct, known as usufrutto. The usufructuary normally keeps the right to use and enjoy the home for the duration of the usufruct. In many cases, this means the buyer cannot move in, use the property as a holiday home or rent it out until the usufruct ends.
The lower price can therefore be attractive, but it is not simply a discount on a property that is ready to use. The buyer is acquiring a divided property right with a different timing, different risks and different practical consequences from an ordinary purchase.
For a foreign buyer, the decision should begin with a clear question: does the legal structure match the intended life plan, investment horizon and need for access to the property?
Short answer: is bare ownership in Italy a good investment?
Bare ownership may be appropriate for a buyer with a long time horizon, sufficient capital and no need to occupy, rent or freely alter the property in the short term.
It can be relevant for a buyer who sees the acquisition as a long-term asset, a future family property or a later-life residence without needing a fixed date of availability. It may also appeal to buyers who are comfortable holding an asset whose value and use are affected by an existing usufruct.
It is usually less suitable for a buyer who intends to retire in Italy within a defined period, use the home immediately as a second residence, generate current rental income or carry out substantial works shortly after completion.
A life usufruct does not normally provide a reliable calendar date for vacant possession. The buyer should not base a retirement plan, relocation plan or family housing plan on assumptions about when the usufruct will end.
A lower price has value only if the buyer can accept the time attached to it.
For a fuller introduction to the legal structure of nuda proprietà and usufruct, read Buying Bare Ownership in Italy: Usufruct Guide.
What are you actually buying with bare ownership?
Italian ownership rights can be divided. In a typical bare ownership transaction, the seller transfers the bare ownership of the property while retaining usufruct.
The bare owner holds the ownership interest. The usufructuary normally has the right to use and enjoy the property during the life of the usufruct. Depending on the legal structure and the documents, the usufructuary may also be able to derive income from the property, including through a lease.
The buyer should therefore not approach the transaction as if they were purchasing a vacant property with delayed keys. They are acquiring ownership subject to another person’s real right of enjoyment.
This distinction has direct consequences:
- The bare owner does not normally have immediate possession
- The bare owner should not assume a right to occupy the home
- The bare owner should not assume a right to rent the property
- The bare owner may face certain ownership costs while lacking immediate use
- The bare owner’s ability to undertake works can be limited by the usufructuary’s rights
- A future sale of the bare ownership remains subject to the usufruct unless it has ended
The documents should identify the exact right being transferred, the person or persons holding usufruct, the duration and legal basis of the right, and any additional provisions affecting maintenance, works, costs, occupation or future use.
The distinction between ownership, usufruct, easements and other rights should be clear before the buyer signs. Encumbrances, Easements, Usufruct and Pre-emption Rights explains how rights held by third parties can affect the use, transfer and value of Italian property.
Why is a lower price not automatically a bargain?
A bare ownership property is often marketed at a lower price than comparable full ownership property. The reason is straightforward: the buyer does not receive the full economic benefit of possession and enjoyment at the time of purchase.
That price difference may be commercially reasonable. It does not automatically mean the buyer has found a bargain.
The buyer may have to wait for an uncertain period before obtaining full availability. During that period, the property may age, require major repairs, become less suitable for the buyer’s future needs or remain difficult to resell because any new buyer would also acquire it subject to the usufruct.
The real economic assessment should include:
- The buyer’s intended holding period
- The type and duration of usufruct
- The age and number of usufructuaries where relevant
- Whether the buyer needs a property by a particular date
- The condition and likely maintenance needs of the property
- Potential extraordinary repair costs
- Condominium expenses and planned works, where applicable
- Whether the property is occupied, leased or otherwise used
- The ability to resell the bare ownership before usufruct ends
- The quality and completeness of the legal documentation
- The likely condition of the property when full ownership is eventually consolidated
A buyer should also avoid treating actuarial assumptions as certainty. A life usufruct is connected to a person’s life, not to a guaranteed release date. The fact that valuation methods may take account of age does not make the timing of availability predictable.
A buyer who wants a retirement home in Sardinia within five years may find that a lower-priced nuda proprietà does not serve the intended objective at all. A buyer with no immediate need for use may reach a different conclusion.
Can the bare owner live in, rent out or renovate the property?
Normally, the bare owner cannot occupy or enjoy the property while usufruct remains in force.
The usufructuary generally retains the right to use the home and enjoy its economic benefit. This may include occupying the property personally or, depending on the circumstances and legal structure, granting a lease and receiving the related income.
The bare owner should not assume they can use the property for:
- Personal holidays
- A future retirement move on a chosen date
- Accommodation for children or other family members
- Short-term rental income
- Long-term residential rent
- Guest accommodation
- A home office or personal storage
- Immediate renovation for a future lifestyle project
The exact position depends on the deed, the nature of the usufruct, any lease arrangements and the specific facts. It should be assessed before the buyer pays a deposit or signs a contract.
Who pays for repairs and maintenance?
The allocation of costs can be one of the most important aspects of a bare ownership purchase.
Under the ordinary legal framework, the usufructuary is generally responsible for custody, administration and ordinary maintenance. Extraordinary repairs are generally the responsibility of the owner, although the position can be affected where extraordinary work became necessary because ordinary maintenance obligations were not properly fulfilled.gazzettaufficiale+1
This distinction can have significant consequences for a buyer. A property may be occupied by the usufructuary, but the bare owner may still need to consider the financial exposure associated with major structural works, roof renewal, significant façade works, replacement of major building elements or condominium extraordinary works.
The buyer should obtain information about the property’s condition, pending or expected works, condominium resolutions, reserves, disputes and cost allocations before entering into the transaction.
The deed and associated documentation should also be reviewed carefully. Contractual provisions can affect how the parties allocate certain obligations and how disputes are managed.
Can the bare owner carry out renovation works?
The bare owner should not assume they can enter the property and begin renovation works while usufruct remains in place.
The usufructuary’s right of use and enjoyment can limit the bare owner’s practical ability to access, alter or interfere with the property. Necessary works, extraordinary repairs and the parties’ respective rights should be considered against the specific legal and factual context.
This is particularly relevant for foreign buyers attracted to a historic home, an apartment requiring modernisation, a rural house in Sardinia or a villa intended for future retirement. A buyer may be able to own the property today, but not have practical freedom to adapt it to their future needs for many years.
What happens when usufruct ends?
When usufruct ends, the bare owner normally becomes full owner with the right to use and enjoy the property.
A life usufruct generally ends upon the death of the usufructuary. Other forms of usufruct may have a defined period or different terms. The buyer must verify the exact legal structure rather than assuming that every transaction follows the same pattern.
When the usufruct ends, the buyer should establish:
- How the end of the right is documented
- Whether the relevant public records need updating
- Whether the property is vacant
- Whether there are tenants, occupants or other rights that remain relevant
- Whether there are outstanding repair or cost issues
- Whether the property’s actual state corresponds to its documents
- Whether the buyer now needs to arrange insurance, utilities, maintenance and management
- Whether the property is ready for use or requires works before occupation
The end of usufruct is an important legal event, but it is not necessarily the end of every practical issue. The property may have been occupied for many years and may require inspection, maintenance, updating or legal clarification before it can be used, sold or rented by the full owner.
Is bare ownership suitable for a retirement plan in Italy?
For a buyer who plans to retire in Italy on a defined timetable, bare ownership is often not the most straightforward solution.
A person hoping to move to Sardinia within three, five or even ten years may need a property that is available when the relocation plan becomes real. A life usufruct does not normally guarantee that availability. The buyer may own the bare property while still needing to rent or buy another home for their actual retirement.
Bare ownership can be more suitable for a buyer whose plans are genuinely long-term and flexible. For example, an adult child may consider an acquisition as part of broader family planning, provided the buyer understands the financial commitment, the absence of immediate use and the possibility that the property may require significant work when full ownership eventually becomes available.
It may also be relevant to a buyer who has sufficient resources to hold the asset without depending on current income, current occupancy or future certainty.
A retirement project should not be built around a property that may remain unavailable at the time the buyer intends to move.
For buyers whose objective is a more immediate move, Live in Sardinia All Year Round: The Property Checks That Matter Before You Move discusses the practical legal questions that matter before treating a property as a permanent home.
Can you sell bare ownership before usufruct ends?
A bare owner can generally transfer the bare ownership interest before usufruct ends. However, any future purchaser would normally acquire the property subject to the existing usufruct.
That limits the potential buyer pool. A buyer seeking immediate occupation, rental income or renovation control may not be interested in acquiring bare ownership. The future purchaser will need to assess the same issues as the original buyer, including the duration of usufruct, condition of the property, costs, documentation and future usability.
Resale value can therefore be affected by:
- The length and nature of the usufruct
- The age and identity of the usufructuary, where relevant
- The property’s condition and maintenance history
- The location and type of home
- The legal status of structures and alterations
- The clarity of title and documentation
- Existing tenants or occupiers
- Condominium costs and planned major works
- The available market for a restricted ownership interest
A well-located property with clean documents and manageable costs may retain more appeal than a property with unclear title, planning irregularities or expensive future obligations. No buyer should assume that bare ownership will be easy to resell simply because it was purchased at a lower price.
What should foreign buyers verify before making an offer?
A foreign buyer should verify both the property and the legal rights attached to it. The buyer is not only acquiring a building. They are acquiring an ownership interest subject to a separate right held by another person.
Before signing an offer or paying a deposit, the buyer should seek clarity on:
- The exact ownership right being transferred
- The identity of every bare owner and usufructuary
- The nature, duration and legal basis of usufruct
- The seller’s power to transfer the bare ownership
- Title history and relevant property registers
- Mortgages, liens, judicial claims and other registered burdens
- Existing leases, occupiers and rights of possession
- The cadastral position and planning documentation
- The current physical condition of the property
- Ordinary and extraordinary maintenance responsibilities
- Condominium charges, meeting minutes, disputes and planned works
- Land, access, coastal or landscape restrictions where relevant
- The proposed purchase offer and deposit terms
- Conditions needed to protect the buyer while essential checks are completed
Foreign buyers should also request the documents necessary to understand the full transaction, rather than relying only on a brief property description or an informal explanation of the usufruct.
For a broader document checklist, read What Documents Should You Ask for Before Buying Property in Italy?.
A deposit should never be treated as a routine administrative payment. Its effect depends on the contract and circumstances. Before transferring funds, see Caparra, Deposit or Advance Payment When Buying Property in Italy.
A practical example
A British couple finds an apartment in Alghero offered as nuda proprietà at a price substantially lower than comparable vacant apartments in the same area.
They plan to retire to Sardinia within five years and see the property as an affordable way to secure a future home near the historic centre and the coast. The seller retains a life usufruct.
The couple’s first impression is that they are purchasing a retirement home at a favourable price. In reality, they are purchasing ownership without a guaranteed date of possession. The usufructuary may continue to live in the property or, where the legal position permits, may derive income from it. The couple cannot rely on the apartment being available when they intend to move.
They also need to understand the property’s condition, any major condominium works, maintenance responsibilities, the possibility of later resale and whether the layout and documents will still support their plans when the usufruct ends.
The transaction may still be appropriate for a buyer with a flexible, long-term horizon. It is unlikely to suit buyers whose retirement plans require a home on a predictable timetable.
What Govoni Law does and does not do
Govoni Law is an independent Italian law firm that assists foreign buyers with property transactions in Sardinia and throughout Italy.
We help buyers assess title, registered rights, usufruct, property documentation, encumbrances, contract terms and the legal consequences of a proposed purchase. Our role is buyer-side and legal-first. We help clients understand whether to proceed, renegotiate, impose conditions or walk away before a commitment becomes binding.
For a bare ownership purchase, Full Legal Due Diligence for Property Buyers in Italy can help assess the legal structure of the transaction, the rights held by each party, the documentation, the property’s legal status and the contractual protections needed before the buyer signs or transfers money.
Govoni Law does not guarantee a financial return, future property value, availability date, rental income or resale outcome. We do not act as a property manager, estate agent, tax adviser, mortgage broker or financial planner. Where tax, valuation, technical condition or investment strategy requires specialist analysis, the appropriate qualified professional should be involved.
Checklist: is bare ownership right for you?
Before buying nuda proprietà in Italy, consider whether you have assessed:
- Your actual intended use of the property
- Whether you need to occupy, rent or alter the property in the near future
- Your realistic holding period
- Whether your retirement or relocation plan has a fixed date
- The identity and rights of the usufructuary
- The duration and exact terms of the usufruct
- The property’s condition and likely future works
- Ordinary and extraordinary repair responsibilities
- Condominium charges, future works and disputes where applicable
- Existing leases, occupants or other rights affecting possession
- The property’s legal documentation, title and registered burdens
- Your ability to own the property without current rental income or personal use
- The likely resale market for bare ownership before usufruct ends
- The purchase offer, deposit terms and contractual protections
Frequently asked questions
Is bare ownership in Italy a good investment?
It can be suitable for a buyer with a long and flexible investment horizon who does not need immediate use or rental income. Its suitability depends on the usufruct, property condition, costs, legal status and future resale possibilities.
Can a foreigner buy bare ownership in Italy?
A foreign national may be able to purchase bare ownership in Italy, subject to the rules that apply to their nationality and the transaction. The buyer acquires the bare ownership interest, not immediate full use of the property.
Can the bare owner live in the property?
Normally, no. While usufruct remains in force, the usufructuary generally retains the right to use and enjoy the property. The bare owner should not assume they can occupy it.
Can the usufructuary rent out the property?
In many cases, the usufructuary may use the property and derive income from it, including through a lease. The precise position should be verified through the usufruct terms and transaction documents.
Who pays for repairs in a bare ownership property?
The usufructuary is generally responsible for ordinary maintenance, while extraordinary repairs are generally the responsibility of the owner. The exact allocation may depend on the nature of the work, the cause of the repair and the transaction documents.gazzettaufficiale+1
What happens when usufruct ends in Italy?
When usufruct ends, the bare owner normally acquires full ownership and the right to use and enjoy the property. The buyer should still verify vacancy, leases, property condition, records and any remaining issues before treating the home as immediately ready for use.
Can you sell bare ownership before usufruct ends?
A bare owner can generally sell the bare ownership interest, but the buyer would acquire it subject to the existing usufruct. This can reduce the potential buyer pool and affect price and liquidity.
Is bare ownership suitable for retirement in Italy?
It may be unsuitable where the buyer intends to retire in Italy within a defined period, because a life usufruct does not normally provide a fixed date when the property will become available.
If you are considering a nuda proprietà purchase in Italy, contact Govoni Law before signing an offer or paying a deposit. Send the property details, available documents and draft contract so the ownership structure, registered rights and practical consequences can be assessed before you commit.
Buying bare ownership can be a thoughtful long-term decision, but only when the buyer understands that ownership today may not mean use tomorrow.