Benefits of Fractional Ownership for Second Homes
Fractional ownership is transforming how international buyers access luxury second homes. No longer limited to family or friend groups, it’s now a smart, structured way to own premium property — with lower entry costs, shared running expenses, guaranteed usage, and full property management.
Discover how this modern ownership model makes luxury destinations more accessible, sustainable, and hassle-free.
Fractional ownership benefits
Unlike full ownership or timeshare, fractional ownership offers a balanced approach: real estate equity, predictable costs, and flexible access, without the burden of management. Imagine you invest the difference in an S&P 500 ETF
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Why Pay 100% for a Home You’ll Use Less Than Half the Year?
All countries limit how long owners can stay in their second homes — often to just 90–180 days per year, unless they become fiscal residents or retirees. Yet most second homes sit empty 80% of the time, while owners pay 100% of the purchase price, taxes, and maintenance.
With fractional ownership under one name, you can purchase up to half the property (equivalent to four 1/8th shares). This aligns well with typical residency restrictions for any second home outside your country of fiscal residence, where non-residents often face time limits on stays. For instance, in many parts of the world—including France and Spain—foreign owners are generally limited to a maximum of six months per year, though this can vary by location and visa rules. Even EU residents from other member states may face similar six-month caps unless they apply for local residency and handle associated taxes.
For British residents post-Brexit, stays in EU countries are restricted to no more than 90 days in any 180-day period (totaling just under six months annually). Fractional ownership helps match your usage to these limits: buying a minimum 1/8th share provides about 45 days per year, two shares offer 90 days, three shares 135 days, and four shares 180 days.
So, with co-ownership, when you buy half the property (four parts), you only pay half the purchase price and half the running costs and taxes on the property. Would that not make more sense than buying 100% of the purchase price and 100% of the running costs/taxes for a second home you can only use six months a year in the best-case scenario?
Also, don’t forget those second European homeowners use their property only 35-40 days a year!
Fractional ownership significantly reduces the upfront investment by allowing you to purchase a legal, deeded share of a high-end property — as small as 1/8th.
This means you gain full ownership rights at a fraction of the cost, making luxury real estate accessible without compromise.
| Ownership Type | Your Investment |
|---|---|
| Full ownership | €1,400,000 |
| 1/8 fractional share | €175,000 |
| Savings: | €1,225,000 |
That’s €1.225 million saved — capital you can reinvest, travel with, or allocate to other priorities.
Whether it’s a mountain retreat, a seaside villa, or a boutique residence in a world-class destination, fractional ownership opens doors to premium locations that were once out of reach.
And because you hold real equity, your share has the potential to appreciate over time — offering both lifestyle value and long-term financial upside.
Shared Running Costs & Taxes – Pay Only Your Share
The typical running costs associated with owning a second home include property taxes, maintenance fees, utilities (such as water and electricity), insurance, service charges, Internet and any other miscellaneous expenses. By pooling resources, these costs can be split among the co-owners, which results in much lower monthly payments per individual. This makes it easier to comfortably afford all of your desired features without sacrificing quality or breaking the bank.
Example 2-bed apartment on the Costa Del Sol in a gated community with swimming pool & gardens.
| Expense | Total (Full Ownership) | 1/8 Owner Pays |
|---|---|---|
| Service Charges (pool, gardens, security, upkeep) | €3,800 | €475 |
| Utilities (electricity, water, gas, internet) | €2,900 | €363 |
| Building & Contents Insurance | €1,000 | €125 |
| Alarm System & Monitoring | €700 | €88 |
| Property Taxes (IBI, basura, etc.) | €3,000 | €375 |
| Sinking Fund (emergency reserve) | €1,500 | €188 |
| Furniture & Kitchen Renewal (averaged over 10–15 years) | €1,500/year | €188 |
| Repairs & Maintenance (AC, plumbing, fixtures) | €1,000 | €125 |
| Total Annual Cost | €15,400 | €1,927 |
Full ownership comes with an annual cost of €15,400 — a significant commitment for a property used just a few weeks per year.
As a 1/8 fractional owner, you enjoy the same luxury apartment with full access and management, but pay only €1,927 per year — less than €161 per month.
Do you pay the French or Spanish wealth tax on a fractional ownership property?
In France, the wealth tax applies to second homes over 1.3M. However, as with all taxes associated with the fractional ownership of a property, they will be split among the owners depending on their share in the property and therefore individually no wealth tax will be due.
Overall, by splitting running costs and taxes among several owners, it is possible to make luxury property ownership more affordable for everyone involved. With fractional ownership of a second home, you can enjoy all the benefits of owning luxurious property without having to worry about managing it or bearing the full financial burden.
Fractional ownership and letting your home a few weeks a year
With some of our fractional ownership homes, owners can enjoy both personal stays and rental income from their property. With many of our fractional properties, the owner can have the days that he is not using rented out to generate income. This is an excellent way to reduce even further the shared costs.
Unfortunately, the rules on holiday rentals are tightening and more and more locations prohibit Airbnb-style rentals…Another good reason to go for fractional ownership as you pay only a fraction of the holiday home running costs.
Why the fractional ownership market is probably the next big real estate shaker?
With sky-high prices for most properties (rental becoming also increasingly expensive or just not allowed), fractional ownership is the perfect solution for anyone looking to enjoy a luxurious property abroad without taking on all of the financial and logistical burdens associated with owning a second home.
Fractional ownership is a great way to experience all the joys of owning a second home without the hassle and expense. So why not get started today and make your dream of owning a property abroad come true?
By taking advantage of fractional ownership, you can enjoy all the benefits of owning a second home with none of the stress or financial burden.
Strange how many of our clients are former second-home owners who have grown disillusioned with owning a holiday home due to all the negatives now associated with it. In many locations rental ofyour second home is not allowed anymore.
Frequently Asked Questions About Fractional Ownership for Second Homes
Fractional ownership allows you to purchase a legal, deeded share of a luxury property (as small as 1/8th) with real equity and ownership rights. Unlike timeshares, you own actual real estate that can appreciate over time, have flexible access rather than fixed weeks, and share all running costs proportionally. You’re not buying usage time — you’re investing in a property that will increase in value. You can transfer the deed to your children too.
The savings are substantial. For example, instead of paying €1.4 million for full ownership of a luxury property, you could purchase a 1/8th fractional share for just €175,000 — saving €1.225 million in upfront costs. Additionally, annual running costs drop dramatically: while full ownership of a 2-bed apartment in a condo with pool might cost €15,400 upwards per year in expenses, a 1/8th owner pays only €1,927 annually (less than €161 per month).
Fractional ownership aligns perfectly with international residency limits. Most countries restrict non-residents to 90-180 days per year in second homes. A 1/8th fractional share provides about 45 days annually, two shares offer 90 days, three shares give 135 days, and four shares allow 180 days, matching typical visa restrictions without paying for unused time.
All property-related costs are split proportionally among owners, including service charges (pool, gardens, security), utilities (electricity, water, gas, internet, alarm), insurance, property taxes, maintenance reserves, furniture renewal, and repairs. This means you only pay for your ownership percentage rather than bearing 100% of the costs for a property you use part-time.
Yes, with some fractional ownership properties (not all, contact us when you see a home that you like), you can rent out your unused days to generate income and further reduce your costs. However, holiday rental rules are tightening in many locations, with some areas prohibiting Airbnb-style rentals entirely. This makes fractional ownership even more attractive since you’re only paying a fraction of the running costs regardless of rental restrictions therefore it is sutainable in time.
For example, in France, where individual wealth tax applies to second homes over €1.3 million, there is no tax applied as each fractional owner only pays tax on their individual share value. Since fractional shares are typically much smaller amounts, individual owners often fall below wealth tax thresholds that would apply to full property ownership. In general, the fractional ownership set-up allows you to avoid wealth-based taxes.