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V0577-26 11 March 2026 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Exemption from capital gain on property sale limited to 240,000 euro reinvestment

A taxpayer over 65 asks how much to reinvest in a life annuity to fully exempt a 100,000 euro gain from the sale of a 500,000 euro property. The DGT responds that the exemption applies proportionally to the amount reinvested, with a maximum reinvestment cap of 240,000 euros.

The question raised

Amount that would have to be reinvested so that the capital gain is fully exempt under the limits of article 38.3 of the LIRPF.

The DGT's ruling

The exemption of capital gains for individuals over 65 requires the allocation of the transfer amount to the establishment of an insured life annuity. There is a maximum limit of 240,000 euros for said reinvestment. If the reinvested amount is less than the total amount obtained, only the proportional part of the gain corresponding to the reinvested amount shall be excluded.

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