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V1583-22 30 June 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Requirements for Personal Income Tax exemption on the sale of the primary residence for those over 65 or dependent persons

A query was made regarding the requirements for the sale of a property to be exempt from Personal Income Tax (IRPF) for individuals over 65. The Directorate General for Taxes (DGT) clarifies that the property must qualify as a primary residence and the individual must be over 65 or in a state of dependency.

The question raised

A request is made to detail the requirements for considering a property as a primary residence for the purposes of applying the capital gains tax exemption derived from the transfer of a property for individuals over 65 years of age under Personal Income Tax.

The DGT's ruling

The exemption from capital gains tax applies if the taxpayer is over 65 years of age or in a state of dependency and the property is their primary residence. A primary residence is considered to be the residence maintained for a continuous period of at least three years, or sooner if there are justified circumstances such as death, marriage, separation, or job relocation. For the exemption to apply, the property must be the primary residence at the time of the transfer or must have been so during the two preceding years.

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