Usufruct

Usufruct is a real right allowing its holder (the usufructuary) to use a property and collect its income without being the owner. In Belgium, this dismemberment of ownership is common in succession planning and investment structures via companies. Usufruct can be for life (duration of the usufructuary's life) or for a fixed term. The usufructuary pays maintenance costs and property tax, while major repairs are the bare owner's responsibility. Split-ownership purchases (bare ownership via company / usufruct via director) have been subject to increased scrutiny by the Belgian tax authorities in recent years. The value of usufruct is calculated using actuarial tables.