Skip to content
Back to index
V0639-19 26 March 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Sale of primary residence by those over 65 may be exempt from Income Tax

A taxpayer has enquired whether capital gains arising from the sale of their primary residence after reaching age 65 are exempt. The Directorate General for Taxes (DGT) has ruled that the exemption applies if the property has served as the primary residence at the time of sale or during the two preceding years.

The question raised

Whether the capital gain generated by reason of said sale is exempt from Personal Income Tax (IRPF) by virtue of Article 33.4.b) of the LIRPF.

The DGT's ruling

The transfer of the primary residence by persons over 65 years of age is exempt from Personal Income Tax (IRPF) pursuant to Article 33.4.b) of the Personal Income Tax Law (LIRPF). For the exemption to apply, the building must have been the primary residence at the time of the transfer or must have been considered as such at any time during the two years preceding the date of sale. The status of primary residence is determined by continuous residence for at least three years, except in exceptional circumstances.

Book your free first meeting