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V0515-18 23 February 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Exemption on capital gains from the sale of primary residence due to dependency or reinvestment

A person with a Grade 1 dependency status enquires whether the sale of their property is exempt from Personal Income Tax (IRPF) to purchase an adapted home. The Directorate General for Taxes (DGT) clarifies that the dependency exemption requires a status of severe or great dependency, or alternatively, the exemption for reinvestment in a primary residence.

The question raised

Whether the capital gain derived from the sale of the real estate property is exempt from Personal Income Tax (IRPF).

The DGT's ruling

The exemption under Article 33.4.b) of the Personal Income Tax Law (LIRPF) requires the taxpayer to be over 65 years of age or to be in a state of severe or major dependency. The degree of dependency must be recognized by the competent Autonomous Administration. Alternatively, the reinvestment exemption requires that the new dwelling be legally acquired within a period of two years (prior or subsequent) to the transfer of the previous one. In the case of construction, the acquisition date is the date of completion of the works.

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