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V1748-20 3 June 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · vivienda habitual

Health-related relocation may allow for habitual residence exemption

A taxpayer inquired whether the death of her husband and her subsequent health issues would allow her residence to be considered habitual before the three-year period expires for exemption purposes. The DGT indicated that health issues could constitute an analogous circumstance requiring a change of residence, though the assessment depends on the evidence provided to the Administration.

The question raised

Whether the death of the spouse is understood as a circumstance requiring a change of residence, for the purposes of considering the capital gain that may arise as a consequence of the transfer of the real estate exempt, pursuant to Article 33.4.b) of the Personal Income Tax Law, as well as understanding the requirement of this being their habitual residence to be met, to consolidate the application of the exemption for reinvestment under Article 38 of said Law.

The DGT's ruling

The death of the taxpayer allows the dwelling to be considered habitual without fulfilling the three-year period. For the surviving spouse, health problems could be categorized as analogous circumstances requiring a change of residence, but the necessity of said relocation must be proven. The assessment of whether the change is mandatory falls to the tax management and inspection bodies.

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