The right of possession may be established in different ways

The right of possession of a real estate unit means that you can keep or use the real estate unit like an owner, but you cannot sell it. An administrator equal to the owner is the party who received the right of possession to the real estate unit gratuitously.

Who can have the right of possession?

An administrator equal to the owner may be

  • A widow with the right to live in the joint home of the spouses
  • The party who has received the right to possess a real estate unit included in the estate with a usufruct legacy
  • The party who donated a real estate unit and is keeping the right of possession to themselves – such as if the parents have donated a leisure property to their children and kept the right of possession.

An administrator equal to owner cannot be created by the seller of the real estate unit reserving the right of possession to themselves. If, for example, the parents sell a real estate unit to their child and reserve the lifetime right of possession, the real estate tax is imposed on the child.

The right of possession and ownership can be divided

The right of possession and ownership can be divided, e.g. so that the grandparents donate

  • the right of possession to their children
  • the right of ownership to their grandchildren.

In such a situation, the children of the grandparents are administrators equal to the owner, who have received the right of possession to the real estate unit as a gift from their parents.

Giving up the right of possession

You can give up the right of possession by submitting a notification.

Originally, reserving the right of possession reduced the amount of gift or inheritance tax. Therefore, giving up the right of possession is considered a taxable gift.

The owner of the property is responsible for the gift tax, because they will now receive the right of possession to the property that they previously received as a gift or inheritance. When an administrator equal to the owner has given up the right of possession, the same person has the right of ownership and possession to the property. 

More information on giving up the right of possession and ownership.