The right of usufruct and bare ownership are two terms widely used in Greece, but, as practice shows, they are not entirely clear to many. The separation of full ownership into the right of usufruct and bare ownership is a common practice for residents of Greece to address certain inheritance and tax issues that may arise.
Full ownership is an absolute right over property, which consists of possession and use of the property. Full ownership = right of use (usufruct) + right of possession (bare ownership).
Bare Ownership = I own the property, but I cannot use it.
Usufruct = I can use the property as I wish, but it does not belong to me.
Usufruct can be transferred not only by contract (sale, donation, etc.) but also by will. Bare ownership can be transferred by the owner without the consent of the usufructuary, while usufruct cannot be transferred without the consent of the bare owner. Additionally, usufruct ceases to exist when the owner renounces it or dies, at which point it automatically merges with bare ownership.
The transfer of usufruct rights is a complex process that requires consideration of many factors (who will dispose of the property, who will use it, who will pay taxes, etc.). It is quite common for Greek parents - property owners to transfer bare ownership of the property to their children while retaining the right of use (usufruct). In this case, the bare ownership of the property is transferred to the child as a right, but management, i.e., use and exploitation, remains with the parents. After the death of the parents, the property automatically transfers to the right of use without additional inheritance taxes.
The transfer of ownership from parents to children has several significant advantages. Control of the estate remains with the parents, while estate taxation is reduced (shared between parents and children). With the death of the parents, the property is automatically transferred to the right of use without additional taxes.
Property transfer procedures in Greece are complex, and their success depends on many factors, the most important of which is a good knowledge of Greek legislation and experience in handling such cases. By timely consulting with an experienced lawyer, you can receive specialized legal assistance, save time, and find the best solution for each case.