Annuitisation & Property as Retirement Provision
*For older owners (from ~65) who want to draw liquidity from the property without giving up (all of) their right to live there — reverse mortgage, sale of the bare ownership, or a life annuity.*
Legend: ✅ established · 🟡 provider-/case-dependent · 🔴 undocumented. Not tax advice. Cross-reference: 17 (usufruct) · 31 (capital-gains tax).
Hipoteca inversa (reverse mortgage) ✅#
A mortgage loan with the property as collateral: the owner remains the owner, continues to live there and receives payments (monthly annuity, lump sum or a combination). The debt only falls due on death; the heirs (usually ~12-month deadline) repay or sell. Recourse limited to the value of the estate (the rest of the inheritance is protected).
- Legal basis: Ley 41/2007 (Disp. adic. 1ª) + Ley 1/2013; mandatory independent advice
before signing. 🔴 A specific "RD 1090/2025" new regulation could not be substantiated → verify before citing.
- Requirement: ≥ 65 years (or disability ≥ 33 % / severe need for care). The greatest
advantages are with the vivienda habitual.
- Tax: the payments are IRPF-free (treated as a loan, not as income) ✅;
AJD-exempt (including the cancellation by the heirs).
- Risks: compound interest (approx. 5–7 % 🟡) makes the debt grow; erodes the inheritance; incidental costs.
Sale of the nuda propiedad with reserved usufruct ✅#
Sale of the bare ownership (nuda propiedad) subject to a reserved lifelong usufruct: the seller continues to live there until death, and the buyer only then obtains full ownership. Payment is usually a lump sum → highest liquidity, the most common practice, but no inheriting of the property.
- Price discount via the usufruct formula
89 − age(min. 10 %, max. 70 %); example age 65
→ nuda propiedad = 76 % of the value.
- Tax (seller): for those ≥ 65 +
vivienda habitual, theganancia patrimonialis **fully
IRPF-exempt (Art. 33.4.b LIRPF; confirmed DGT V1459-25/2025) ✅. 🟡 Does not apply**, if ownership has already been split (desmembrado).
Renta vitalicia inmobiliaria & alquiler vitalicio#
renta vitalicia inmobiliaria: like the nuda-propiedad sale, but the consideration is a
lifelong monthly annuity (often ~twice as high as the reverse mortgage) instead of a lump sum.
alquiler vitalicio/cesión de uso: a contractual right to live/use "until death"
(not a right in rem like the usufruct); the owner may remain the full owner.
Over-65 reinvestment in a life annuity ✅#
Anyone over 65 who sells an asset and reinvests the proceeds within 6 months into a renta vitalicia can exempt the ganancia from IRPF — max. €240,000 (proportionally for partial reinvestment). Especially relevant for second homes (for the vivienda habitual ≥ 65 the full exemption applies anyway).
Providers (Spain, 2025/2026) ✅#
Santander/MAPFRE (nationwide), Caser (via Vittalias among others), EBN Banco (Inversa Prime), Óptima Mayores (with BNI Europe), Caja de Ingenieros, Catalana Occidente; intermediaries include Renta Mayores, Grupo Retiro. 🔴 A provider "Almavida" could not be confirmed (probably a confusion).
Relevance for international Mallorca owners 🟡#
- The instruments are also open to foreigners (providers active nationwide).
- Tax crux: the over-65/
vivienda-habitualexemptions presuppose a **main residence in
Spain. Many international owners hold the property as a holiday/second home → the exemption usually does not apply; then it is like a normal sale**: IRNR (19 %/24 %) + 3 % retención + plusvalía (→ 06 · 31).
- Conclusion: for holiday properties the reverse mortgage (ownership stays, payout tax-free)
is often more obvious than the nuda-propiedad sale — individual advice (residency status, DBA) is essential.
Pitfalls#
- Buyer of the nuda propiedad: longevity risk (full ownership only on death), no use/
letting, long investment horizon. ✅
- Seller: provider reputability (ASUFIN complaints about reverse mortgages), loss of the inheritance,
interest/incidental costs, family conflicts.
❓ FAQ#
Do I keep my house with a reverse mortgage? Yes — you remain the owner; the debt only falls due after death, and the payments are IRPF-free.
Can I still pass the property on? Only with the reverse mortgage (heirs repay/sell). With nuda propiedad / renta vitalicia, ownership passes to the buyer.
As a non-resident with a holiday home — am I tax-free on the nuda-propiedad sale? Usually not — without a Spanish main residence the over-65 exemption does not apply (IRNR + 3 % + plusvalía).
Sources (selection)#
- Ley 41/2007 (BOE-A-2007-21086) · Banco de España (Guía hipoteca inversa) · Art. 33.4.b LIRPF + DGT
V1459-25 · Agencia Tributaria (Reinversión renta vitalicia, mayores 65) · Óptima Mayores (market data)