The quirky world of Spain’s ‘nuda propiedad’ market could be set to expand over the coming years – even if many Spaniards still see it as taboo.
The formula is simple: the seller gets cash up front while keeping lifelong use of the property, and the buyer gets to snap up a home far below market value – with the catch that they can’t take possession until the seller dies.
The scheme hit the headlines last year when flamboyant TV producer Jose Luis Moreno put the bare ownership of his Boadilla del Monte mansion up for sale.
On property portals like Idealista, listings come plastered with the slogan ‘Ideal for investors’. One recent advert in Malaga offers a 90m² flat valued at €290,000 for just €141,000 – though the 65-year-old seller will remain in residence until the end of his days.
Pros and cons
For older sellers without heirs – often scraping by on modest pensions – the deal can provide vital liquidity. Buyers, meanwhile, can access prime homes for 50–60% less than market value, banking on future appreciation.
But experts recently told Idealista that the low offers ‘rarely compensate for losing the family inheritance, especially in today’s high-price market where people live longer and longer.’ They added that this ‘reduces the value investors are willing to pay.’
Cultural tradition also weighs heavily. Many Spaniards remain reluctant to sell a home they’d rather pass down to their children.
Figures show the limits
Despite a post-pandemic uptick, sales of ‘nuda propiedad’ remain tiny compared to other European markets like France or Belgium. Spain recorded 1,817 such deals in 2024, slightly down from 1,845 the year before, according to the Registry of Property.
In Malaga, operations have slumped back to just 17 sales last year, despite briefly doubling in 2021.
Tax quirks
For sellers over 65, there’s no capital gains tax on these transactions – only municipal plusvalía. Buyers, however, must pay a 7% transfer tax on the discounted value.
Reverse mortgage: another niche option
Another way pensioners are unlocking cash is via the hipoteca inversa, a reverse mortgage allowing owners over 65 to receive monthly payments without giving up ownership. After death, heirs can repay the debt, sell the home, or let the bank foreclose.
Still, uptake is minimal. Only 25 reverse mortgages were signed in Malaga in 2024, reflecting both the lack of promotion and Spain’s ingrained desire to pass homes to children.
However, an ageing population, longer life expectancy and low pensions are fuelling demand for equity release products.
A joint study by Fundación Edad y Vida and Fundación MAPFRE notes that many retirees want to maintain spending on travel and leisure even in old age, creating pressure to monetise their property assets.
For now, however, Spain’s nuda propiedad and reverse mortgage markets remain niche, controversial and highly localised.
Read more Spanish property news at the Spanish Eye.
