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V0175-21 3 February 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Age exemption does not apply to the sale of a property that ceased to be a primary residence more than two years ago

A taxpayer over the age of 65 inquired whether the sale of their former primary residence is exempt from Personal Income Tax (IRPF), given that four years have passed since they moved to a different property. The Directorate General of Taxes (DGT) ruled that the exemption does not apply because the property no longer meets the requirement of being a primary residence or having been one within the two years prior to the sale.

The question raised

Taxation of the transaction for Personal Income Tax purposes.

The DGT's ruling

In order for the capital gain from the transfer of the dwelling to be exempt due to the taxpayer being over 65 years of age, the building must be the habitual residence at that time or have been so on any day during the two years prior to the date of transfer. As four or more years have elapsed since the taxpayer abandoned the dwelling, the tax exemption does not apply.

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