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V1211-17 18 May 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Exemption for sale of main residence does not apply if it ceased to be so more than two years ago

A taxpayer over 65 enquired whether they could claim an exemption on the sale of a property that ceased to be their main residence in 2007. The Directorate General for Taxes (DGT) ruled that the exemption cannot be applied because the property was not considered a main residence at the time of the transfer.

The question raised

Taxation of the capital gain generated in the transfer. Possibility of exemption due to being over 65 years of age.

The DGT's ruling

To apply the exemption, the transferred property must be the primary residence at the time of sale or have been so on any day during the two years prior to the transfer. In this case, the property lost its status as a primary residence in 2007 and, as more than two years had elapsed until the transfer in 2017, neither the age exemption nor the reinvestment exemption applies.

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