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V1889-20 11 June 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Sale of a parking space may be exempt from Income Tax if treated as a primary residence

A taxpayer over 65 enquired whether the sale of a parking space was exempt from tax as a primary residence. The DGT ruled that it may be exempt if the space was treated as part of the primary residence at the time of purchase and meets the requirements for a primary residence.

The question raised

Whether the disposal of the aforementioned parking space is taxed under Personal Income Tax (IRPF) as a capital gain, or is exempt from taxation pursuant to Article 33.4.b) of the LIRPF.

The DGT's ruling

The transfer of a garage space generates a capital gain or loss. However, it may be exempt from taxation if the space formed part of the habitual residence and was assimilated to the dwelling. For this assimilation, the space must be located in the same building or real estate complex and must have been acquired in the same transaction as the dwelling. Furthermore, it must maintain the status of habitual residence at the time of the transfer or during the two preceding years.

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