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V0525-22 14 March 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Exemption for main residence does not apply if sale occurs more than two years after moving out

A person over 65 enquires whether the sale of their former home is exempt from Personal Income Tax (IRPF) based on previous residency. The Directorate General for Taxes (DGT) rules that the exemption is not applicable because the property was not the main residence at the time of the transfer nor during the two preceding years.

The question raised

Whether said capital gain derived from the sale of the apartment is exempt from taxation by virtue of article 33.4.b) of the LIRPF.

The DGT's ruling

In order for the gain from the sale of a dwelling to be exempt on the grounds of being over 65 years of age or a dependent person, the dwelling must be the habitual residence at the time of the transfer or must have been so in the two preceding years. If the transfer is carried out more than two years after it ceased to be the habitual residence, the exemption under article 33.4.b) of the LIRPF shall not apply.

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