In Spain, it’s common for the ownership of a property to be split after an inheritance: typically, a parent keeps the right to use and benefit from the property for life (known as usufruct), while the children hold the legal ownership (known as bare ownership). But what happens if everyone agrees to sell the property to a third party? How is the sale price divided?

Let’s break it down in simple terms, using the so-called "Rule of 89", which is used throughout Spain to value usufruct rights.

Usufruct means the legal right to use and benefit from a property without owning it. The usufructuary can live in the property or rent it out but cannot sell it independently. Bare ownership means holding legal title to the property without having the right to use it until the usufruct ends (usually when the usufructuary passes away or renounces their right).

To sell full ownership, both the usufructuary and the bare owners must sign the deed of sale. Each party is entitled to a fair share of the sale proceeds, based on the current value of their respective rights. In Spain, this is calculated using a standard formula known as the Rule of 89.

The formula works like this:
Usufruct share (%) = 89 minus the age of the usufructuary

There are legal limits: the maximum is 70% of the property’s value, and the minimum is 10%. The remaining value up to 100% is attributed to the bare ownership.

Example:
A property is sold for €100,000.
The mother, aged 75, holds the lifetime usufruct.
Her two children are the bare owners, each with a 50% share.
89 – 75 = 14 → Usufruct is worth 14% = €14,000
Bare ownership is 86% = €86,000 → €43,000 per child

At the notary, all parties attend the appointment. The deed reflects that the usufructuary and the bare owners are transferring their respective rights. The buyer pays each party directly, typically via bank transfer or cheque, in proportion to their share.

This process ensures legal clarity, prevents disputes, and aligns with Spanish tax regulations. If you are involved in a transaction like this and not familiar with the system, it’s advisable to consult a solicitor or notary experienced in Spanish property law.