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V0612-22 23 March 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Capital gains from selling the primary residence of those over 65 are exempt without the need for reinvestment

A query was raised regarding whether a taxpayer over the age of 65 who sells their primary residence and reinvests the proceeds into a new property is entitled to a capital gains tax exemption. The Directorate General of Taxes (DGT) ruled that the exemption for individuals over 65 is direct and does not require the reinvestment of the proceeds.

The question raised

In the case of a taxpayer over 65 years of age, who intends to sell their primary residence and reinvest part of the amount obtained in the purchase of their new primary residence, it is questioned whether the potential capital gain derived from the sale of their residence is exempt.

The DGT's ruling

Capital gains from the transfer of the primary residence of persons over 65 years of age are exempt pursuant to Article 33.4.b) of the Personal Income Tax Law (LIRPF). For the exemption to apply, the residence must be the primary residence at the time of the transfer or must have been so during the two preceding years. In this case, it is not necessary to reinvest the amount obtained in the acquisition of a new primary residence.

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