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V1546-19 ·24 June 2019 ·consulta-vinculante Medium impact
Tax

Income tax exemption for the sale of primary residence may apply in insolvency proceedings

A query was raised regarding whether the sale of a debtor's primary residence during the liquidation phase of insolvency proceedings, conducted to a third party to settle mortgage debts, allows for an exemption from capital gains tax. The Directorate General for Taxes (DGT) has ruled that such an exemption can be applied, provided all legal requirements are met.

In 6 key points

How it affects those involved

This ruling provides legal certainty for debtors in insolvency proceedings, confirming that the sale of their main home to settle mortgage liabilities can still qualify for capital gains tax relief.

Lifecycle

2019-06-24PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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