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V1430-18 29 May 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · vivienda habitual

Main residence exemption does not apply if full ownership is split between usufruct and bare ownership

A taxpayer inquired whether they could apply exemptions for those over 65 or for reinvestment when selling a property of which they were both the usufructuary and the bare owner. The DGT ruled that these exemptions require full ownership of the property.

The question raised

Whether one could benefit from the exemptions provided for the transfer of a habitual residence by persons over 65 years of age and/or by reinvestment in a new habitual residence.

The DGT's ruling

Tax benefits for habitual residence are linked to the ownership of full title, even if held jointly. When full title is dismembered between the bare owner and the usufructuary, the exemptions provided in Articles 33.4.b and 38 of the Personal Income Tax Law (LIRPF) do not apply. In this case, only the portion of the gain corresponding to the percentage of full title could be exempt.

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