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V1628-19 1 July 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención

Exemption on transfer of primary residence for over-65s applies to buildings and jointly acquired elements

A person over 65 enquired whether the Personal Income Tax (IRPF) exemption could apply when subdividing and donating a portion of their plot without any construction. The Directorate General for Tax (DGT) ruled that the exemption only applies to the building and elements acquired jointly with the residence, not to plots or elements acquired independently.

The question raised

Possibility of applying the exemption provided for in Article 33.4.b) of the Personal Income Tax Law.

The DGT's ruling

The segregation of a property does not alter its value or acquisition date, but the transfer of the resulting portion generates a capital gain or loss. The exemption for persons over 65 is only applicable if the transferred portion is considered a primary residence. This includes the main building and elements acquired jointly with it, but not elements acquired independently or subsequently.

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