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V1410-19 12 June 2019 · SG de Tributos Locales Criterion in force
OTRO · iivtnu

Exemption for deed in lieu of payment of primary residence applies only to the spouse meeting residency requirements

A query was raised regarding whether both spouses could benefit from the IBI (IIVTNU) exemption following a deed in lieu of payment of the primary residence when only one spouse has been registered on the municipal roll for two years. The DGT ruled that the exemption only applies to the spouse who meets the residency requirement, in proportion to their ownership stake.

The question raised

To determine whether the exemption for deed in lieu of foreclosure upon the transfer of the habitual residence is applicable to both spouses, whether it is only applicable to the one who meets the habitual residence requirement, or whether it is not applicable to either spouse.

The DGT's ruling

To apply the exemption provided in Article 105.1. c) of the TRLRHL, the dwelling must be the taxpayer's habitual residence, understood as that in which they have been registered on the municipal roll uninterruptedly for at least two years prior to the transfer. Therefore, the exemption only applies to the spouse who meets said registration requirement, in the proportion of ownership they hold over the dwelling, and does not apply to the spouse who does not meet it.

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