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V1747-23 15 June 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Capital gains tax exemption available on home sales for those over 65

A married couple over the age of 65 has requested clarification on the requirements to apply for an exemption on capital gains from the sale of their main residence. The Directorate General for Tax (DGT) clarifies that the exemption applies if the property has served as the habitual residence at the time of sale or during the two preceding years.

The question raised

Conditions for applying the exemption contained in Article 33.4.b) of the Personal Income Tax Law.

The DGT's ruling

Capital gains from the transfer of the primary residence are exempt if the transferors are over 65 years of age. To this end, the building must be the primary residence at the time of the transfer or have been so on any day during the two preceding years. The status of primary residence requires continuous residence for at least three years, except in exceptional circumstances that justify a change of domicile.

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