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V1361-20 12 May 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Exemption on sale of main residence for those over 65 requires it to have been the primary residence at the time of sale or in the two preceding years

A person over 65 enquires whether they can apply for the capital gains tax exemption by selling a property they moved back into in 2019. The DGT rules that for a property to qualify as a main residence, the individual must have resided in it continuously for three years.

The question raised

In February 2020, it is inquired whether the exemption provided for in Article 33.4.b) of the Personal Income Tax Law would apply, on the understanding that it constitutes their primary residence.

The DGT's ruling

To apply the exemption for the transfer of a primary residence due to being over 65 years of age, the building must constitute the primary residence at that time or have been so during the two preceding years. The dwelling must be effectively and permanently inhabited for a continuous period of at least three years. In this case, the three-year period to regain the status of primary residence would begin counting from November 2019.

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