Buyer’s Q&A
Are there minimum holding periods on fractional ownership shares?
Typically 12 months. After a first year of ownership you can sell whenever you choose, at the price you set; your co-owners get the first chance to buy.
The short answer: Typically just the first 12 months. After that initial year of ownership, you sell whenever you choose, at the price you set — your co-owners get the first chance to buy, and the share is then offered to new buyers. Separately, some countries reward longer holds with lower capital gains tax (France and Italy, for example), which many owners factor into their plans.
Full guide: How to sell a fractional ownership share, step by step
The initial holding period
A holding period of the first 12 months is typical. It lets the original sale of a home's shares complete smoothly before resales begin, and it is set out clearly in the co-ownership agreement. Some homes have a shorter period or none at all.
Once it has passed, you list your share whenever you choose, at the price you set. Shares sell: hundreds of shares in homes like these have already been resold—in just over three months on average, and nearly three in four for more than the owner paid.
Tax-driven effective minimum holds
Several jurisdictions reduce capital gains tax on real-estate-related disposals the longer the share is held. Common patterns:
| Jurisdiction | Holding-period CGT effect |
|---|---|
| France | CGT tapering — reduced rates after 6 years; full CGT exemption after 22 years for income tax, 30 years for social charges |
| Italy | CGT exemption on real-estate gains after 5 years of holding |
| Spain | Some indexation reliefs for older holdings; rules updated periodically |
| USA | Long-term capital gains rate (15-20%) applies after 1 year vs short-term (ordinary income rate) under 1 year |
| UK | No holding-period taper; same CGT rate regardless of holding period |
In several countries, a longer hold brings a lower tax bill on any gain.
Thinking long term
Most owners buy for the years of holidays ahead, and that is where co-ownership shines. A longer hold spreads the one-off purchase and resale costs over more years of use, gives the home time to grow in value, and can unlock lower capital gains tax in countries with holding-period relief.
If your plans change
Life moves on — a new job, a move abroad, a change in family circumstances. Because you own a real share of the home, you can sell it once the initial holding period has passed, without anyone having to sell the whole house.
First refusal
Co-owners usually get first refusal on a share coming up for sale — a natural first audience of buyers who already know and love the home. The seller sets the price; if no co-owner takes it up, the share is offered to new buyers. The co-ownership agreement sets out the details.
Holding period implications for the buyer's purchase decision
Three things to factor in at purchase. First, think about how many years of holidays you'd like from the home — most owners plan for five or more. Second, check the capital gains tax position in your country and the property's. Third, note the initial holding period in the co-ownership agreement.
What buyers should ask
Three questions. Does the company impose a minimum holding period and what is it? How does first refusal work for co-owners? What are the resale fees when I come to sell?
Where to find listings with documented resale policies
Co-Ownership Property's selection lists fractional inventory whose holding-period policies and resale terms are documented in the co-ownership agreement.
Further reading
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