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V1719-18 18 June 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

The sale of a primary residence abroad may be exempt from Personal Income Tax if carried out within two years of ceasing to reside in it

A taxpayer over 65 asks whether the sale of their home in Germany is exempt from Personal Income Tax upon becoming a resident in Spain. The DGT responds that the exemption for a primary residence also applies to homes located outside of Spain, provided that the residency requirements and the transfer period are met.

The question raised

In the event of becoming a tax resident in Spain in the 2018 tax period and selling, in said year, the residence in Hamburg prior to August 4, 2018, whether the capital gain obtained by the inquirer from said sale would be exempt from taxation under Personal Income Tax, given that they are over 65 years of age.

The DGT's ruling

The exemption for individuals over 65 for the transfer of a primary residence does not require the property to be located in Spanish territory. To apply this exemption, the building must have served as a primary residence for a continuous period of at least three years or must have been so at any time during the two years prior to the date of transfer. Residency is a matter of fact that must be proven through valid means of evidence.

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