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V0492-22 10 March 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Exemption on transfer of main residence for those over 65 requires property to be current or former main residence within two years

A query was raised regarding whether the sale or donation of a property by an 88-year-old mother to her daughter is exempt from Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) ruled that the exemption for individuals over 65 applies if the property is the main residence at the time of transfer or has been the main residence during the two years prior.

The question raised

Whether the capital gain derived from the sale or donation of said residence to their daughter is exempt.

The DGT's ruling

The capital gain from the transfer of the residence of a person over 65 years of age is exempt if the property constitutes their habitual residence at the time of the transfer or was such at any time during the two preceding years. To certify the status of habitual residence, it is required that it has been the effective residence for at least three continuous years since acquisition. Mere registration in the municipal register is not sufficient proof on its own to certify residence.

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