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V1233-16 29 March 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Exemption on sale of main residence for over-65s requires proof of effective residence

A query was raised regarding whether taxpayers' parents, aged over 65, can apply for the exemption on the sale of their home after moving into a rental property. The DGT clarifies that the exemption depends on the property having served as the main residence and on meeting all regulatory requirements.

The question raised

Whether the exemption provided for in Article 33.4.b) of the Personal Income Tax Law would be applicable.

The DGT's ruling

For the capital gain from the sale of the dwelling to be exempt, the building must have been the taxpayer's habitual residence at that time or have been so in the two preceding years. The requirement of habitual residence demands effective and permanent use by the taxpayer themselves, which is a matter of fact that must be proven. Registration in the municipal register is neither indispensable nor sufficient on its own to prove habitual residence.

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