What is the difference between a right of habitation and a usufruct?

Question

José Manuel Alburquerque · Accepted Answer

A usufruct gives the right to use and enjoy the whole home and to keep any rent from it, so the usufructuary can live in it or let it out. A right of habitation only allows the home to be occupied so that the holder and the people who live with them can live there. That is why it does not give the right to let it out. Nor can the holder sell or mortgage that right without the owner's consent, whereas a usufruct can be sold or assigned. Both normally last for life, but a right of habitation can only be held by individuals and the tax authorities give it a lower value. What each one allows Both are regulated by the “Código Civil de Cataluña”, the Catalan Civil Code. The rules on usufruct apply to the right of habitation on any matter for which it has no rules of its own. In terms of what they allow, they differ as follows: A usufruct allows the holder to possess the home and enjoy all the benefits it provides. The usufructuary can live in it, leave it empty or let it out and collect the rent, provided its intended use is respected. A right of habitation allows the holder to occupy the rooms and annexes of a home to meet the housing needs of the holder and of those who live with them, even if the household later grows. It does not allow the home to be let out or any rent to be collected for it. The right of use, which the law regulates together with the right of habitation, lies halfway between the two. It allows the holder to use the asset and keep whatever it produces that the holder and those who live with them need, but no more. Other differences Disposing of the right. A usufruct can be sold, assigned or mortgaged, although in Catalonia the bare owner has a preferential right to buy it. A right of habitation can only be sold or encumbered if the owner consents. Who can hold it. A right of habitation can only be held by individuals. A usufruct can also belong to a company or another entity. The costs. The holder of a right of habitation pays the costs of the home that can be individually attributed, such as their own utility consumption. They also pay for any services they have taken out. The usufructuary pays, in addition, the remaining ordinary costs, such as the IBI (the local property tax) and ordinary repairs. The duration. Both are presumed to last for life if the holder is an individual. If there are several holders of a right of habitation, it lasts until the last of them dies. Loss of the right. A right of habitation can be extinguished by a court decision if it is used in a way that is seriously contrary to the nature of the home. It also ends if a mortgage on the home to which the holder consented is enforced. The value for tax purposes. A usufruct is valued using a table that depends on the usufructuary's age. A right of habitation is valued with the same table applied to 75 % of the value of the home. When to choose each one A usufruct is suitable when the person receiving it needs the income, because they can let the property out. A right of habitation is useful when all you want is to ensure that someone will be able to live in the house, for example your partner or a child with a disability, without their being able to let it out or assign their right, with a lower tax bill. Under the Spanish Civil Code (“Código civil”), which applies in most of the rest of Spain, the difference is similar and a right of habitation cannot be let or transferred either.