Usufrutto (Usufruct)

A real right granting someone (the usufruttuario) the use and enjoyment of a property owned by another (the nudo proprietario) for a determined period – often the lifetime of the usufruttuario. The usufruttuario may use the property, live in it, or rent it out and collect rents . They must preserve its substance (can’t demolish or alter it fundamentally) and pay routine maintenance and property expenses, including IMU as if they were the owner. The owner retains nuda proprietà (bare ownership) and will regain full possession when the usufruct ends (e.g., upon the death of the life tenant or at the term of years). Usufructs can be created by a deed or by law (for instance, a surviving spouse has by law a life usufruct on the family home). They are commonly used in estate planning – parents might retain usufruct on a house and give nuda proprietà to children. The value of usufruct for tax or sale purposes is based on age: younger usufructuaries have a more valuable usufruct (and the nuda proprietà is correspondingly less). An usufrutto can be sold or given up by the usufruttuario but still ends at the originally set time (cannot be extended by sale). It’s recorded in the Conservatoria so that any buyer knows someone else has use. The usufruttuario and nudo proprietario must often coordinate: major repairs are the owner’s responsibility, ordinary upkeep the usufruct’s. At the end of usufruct, the nudo proprietario automatically becomes full owner (this consolidation is often noted by a notary but it’s by operation of law). For a buyer, purchasing a property subject to someone’s life usufruct means you’ll only get to use it after that person’s death – hence these sales are at a discount and not common unless within family. Sometimes banks or funds buy nuda proprietà from elderly with the person staying via usufrutto as a way to liquidate assets. Usufruct can also be used by a company to give housing to someone while keeping ownership separate- Usufrutto (Usufruct): A real property right allowing one person (usufruttuario) to use and enjoy a property owned by someone else (who retains nuda proprietà, or bare ownership). The usufruttuario can live in the property or rent it out and collect rents, essentially enjoying the “fruits” of the property, while the nudo proprietario owns the title but without the use during the usufruct term. Usufruct is often for a person’s lifetime (commonly the life of the usufruttuario) or a set number of years (but by law it cannot exceed 30 years if for a legal entity). It automatically expires at the end of term or upon death, and the full ownership reverts to the nudo proprietario (consolidation). The usufruttuario must preserve the property’s substance – they can’t change or damage it and must handle ordinary maintenance and expenses. They also typically pay property taxes like IMU during their usufruct. The nudo proprietario is responsible for extraordinary repairs (e.g. structural issues) unless agreed otherwise. Usufructs are often created in estate planning (e.g., a parent gives a house to children but keeps usufruct to live there until death). They can be sold or gifted: one can sell a nuda proprietà at a reduced price with an elderly person retaining usufruct until death, which is a way some seniors extract value while continuing to live in their home. Calculating usufruct value is done via tables set by law (based on the age of the usufruttuario and a legal interest rate). If you buy a property with someone’s usufruct on it, you cannot occupy it until the usufruct ends. Conversely, buying just the usufruct gives you temporary rights but not permanent ownership. Usufruct is protected by registration in the real estate registry, and it can be mortgaged or rented out by the usufruttuario (within the time limit of their right). It is a key concept in Italian law separating the enjoyment of a property from its bare ownership.