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V0257-19 8 February 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · vivienda habitual

Sale of primary residence by those over 65 may be exempt from Income Tax if residency requirements are met

A person over 65 enquired whether the sale of their home, partially owned through a testamentary trust, and the subsequent distribution of funds to the trust beneficiaries, were subject to Income Tax. The Directorate General for Taxes (DGT) ruled that the capital gain from the sale is exempt if it is the primary residence and that the distribution to the beneficiaries does not constitute taxable income.

The question raised

Cuestión planteada Tributación de la transmisión de la vivienda y de la liquidación realizada a los herederos fideicomisarios por el Impuesto sobre la Renta de las Personas Físicas.

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