Bare Ownership Investment in Spain: High Profitability & Security

By Corelex Global – Legal Advisors for International Investors 

Market Context: Why Now is a Strategic Moment 

Spain’s real estate market is experiencing a remarkable phase of growth, especially in key urban centers like Madrid. Over the past five years, property values in Madrid’s most desirable neighborhoods have appreciated significantly. Statistics have shown a 75% increase in the general residential property price index in the Madrid region over the past decade, reflecting strong long-term upward momentum.

This surge has intensified entry barriers for many, and have seen prices in prime areas jumping by 21% in the past five years. As property values become increasingly unaffordable for many, with projections showing another possible increase of 4%-5% in 2025, bare ownership investment in Spain (nuda propiedad) has emerged as a highly attractive alternative for investors. This structure allows buyers to access high-value real estate at substantially lower prices, without the burdens of property management or payment of Spanish Income Tax.

The Rise of Bare Ownership in Spain

Bare ownership is emerging as a strategic investment market rather than a niche trend. Registrars recorded 1,817 ​​bare ownership transactions in Spain in 2024, up from 1,657 in 2022, a 23.7% increase over 2021. This growth is driven by demographic trends: elderly homeowners can monetize their properties while retaining the right to live in them, and investors gain access to high-quality real estate at 30%–50% below market value.

What Exactly Is Bare Ownership, and How It Works

Bare ownership separates two distinct rights over a property:

– legal ownership, which the buyer acquires immediately
– usufruct, the right to use and benefit from the property, which the seller retains for life, or a fixed term

In practice, the buyer gets the title now but must wait for the usufruct to end to gain full possession. Since the usufructuary (the seller) continues living in or using the property, the buyer does not take on normal residential responsibilities such as maintenance, utilities, or tenant risk.

Real-World Examples Illustrating the Bare Ownership Model

Case Study 1: Manilva, Málaga

A private complex in Manilva, Málaga includes a 124 m² apartment with two bedrooms, two bathrooms, terrace, gardens, pool, and private parking. Its market value is €240,000, but in a bare ownership deal, it was sold for €118,300, almost a 50% discount. The sellers, aged 82 and 78, retain life usufruct, and the estimated investment duration for the buyer is about 10-13 years, yielding an IRR of 7.24%.

Case Study 2: Chamberí, Madrid

In a prime central Madrid property investment location, a 164 m² apartment with four bedrooms – market-valued at €1,256,896 – is being offered under bare ownership for €955,690, reflecting a 24% discount. The usufruct is held by two elderly residents aged 92 and 88, who will continue living there for the duration of their life. This example demonstrates how bare ownership can provide access to high-value, centrally located real estate in Spain that might be otherwise out of reach.

Why Bare Ownership Appeals to International Investors

For international property investors, bare ownership is especially compelling. First, the model eliminates many common problems. In bare ownership, there is no landlord-tenant relationship to manage, no need to handle lease agreements, and no risk of vacant periods or non-payment. Second, there is no immediate rental income tax, because the property remains under the seller’s usufruct. Third, in some deals, the seller may offer partial financing for the purchase, reducing the capital required upfront.

Corelex Global Methodology & Selection Criteria

Corelex Global uses a rigorous, investor-focused methodology to identify and structure bare ownership investments in Spain. The firm concentrates on high-growth areas such as Madrid, Catalonia, Valencia, Alicante, and Málaga, prioritizing properties with strong long-term appreciation potential. Corelex typically works with sellers aged 70 and above, allowing the duration of the usufruct to be modelled reliably using INE life-expectancy data.

Each opportunity undergoes detailed financial analysis, targeting a minimum projected IRR of 7% for two usufruct holders and 6% for one. Valuations are based on comparable market data and INE revaluation indicators, ensuring a realistic assessment of future returns.

The investment process is streamlined for international buyers: it begins with an individual consultation and a €500 service agreement covering up to three property searches. Corelex then manages asset selection, financial modelling, due diligence, and negotiations. Once a deal is reached, the team coordinates the notarial signing, handles tax obligations, and registers the title with the Land Registry, ensuring full legal security and a seamless acquisition process.

Corelex Global’s Value Proposition

With over 500 completed real estate transactions, more than €60 million in managed investments, and 25 years of experience, the firm has deep expertise and a proven track record. Corelex ensures that every deal is structured to minimize risk, maximize return, and deliver peace of mind, from initial search to final ownership.

Risks and Common Questions

Like any long-term investment, bare ownership comes with some risks. The main one being the waiting period. Until the usufruct ends, the buyer holds legal ownership but does not benefit from use. There is also the potential uncertainty about the condition of the property. Corelex mitigates these risks through thorough due diligence, robust contractual protections (e.g. repair obligations, warranties), and conservative financial modelling.

Some common questions include: Is the usufruct always for life? The answer is not necessarily, it depends on the agreement; it can be for life or a fixed term. Another question is Can I resell the bare ownership before the end of usufruct? In this case, resale is fully possible, though buyers should consider liquidity and market dynamics.

Conclusion

In an era of soaring property prices, especially in Madrid, bare ownership offers a powerful, strategically differentiated way to access high-value real estate in Spain at a meaningful discount. For international investors, the model combines long-term capital appreciation with legal security and operational simplicity. Through its disciplined methodology, deep market knowledge, and full-service execution, Corelex Global empowers investors to participate in Spain’s booming real estate market with confidence, clarity, and long-term vision.

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Media and Sources:
– Spanish Property Insight, “Madrid property market report: Prices rise 21% in five years; long-term growth strengthens” (2025)
– Idealista, “Housing and rental prices will rise more than sales in 2025, according to analysts” (May 2025)
– Aun Más Vida, “Comunidad Valenciana lideró las compraventas de nuda propiedad en 2024” (2024)
– CostaLuz Lawyers, “Bare ownership sales increase — but what is it?” (2023–2024)
– Registrars of Spain, Annual real estate transaction data on nuda propiedad (2022–2024)
– INE – Instituto Nacional de Estadística, Life expectancy tables and valuation indices (latest editions)
– Spanish Civil Code, Articles regulating usufruct (Arts. 467–522) and bare ownership rights
– General Council of Notaries, Market statistics and legal framework for usufruct and bare ownership (2023–2024)