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V2071-20 23 June 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · domicilio fiscal

Exemption on capital gains from the sale of primary residence applies to those over 65

A taxpayer over the age of 65 sought clarification on which tax residence to declare after selling their home in Madrid and moving to Cáceres, and whether the profit from the sale was exempt. The DGT clarifies that the tax residence is the one communicated to the Administration and that the gain from the sale of their primary residence is exempt.

The question raised

Tax residence that must appear in the 2019 Personal Income Tax (IRPF) return.

The DGT's ruling

The tax residence of natural persons is the place where they have their habitual residence, with the tax residence being that communicated by the taxpayer to the Tax Administration. Regarding capital gains, the transfers of the habitual residence by persons over 65 years of age are exempt from Personal Income Tax (IRPF). As it is an exempt gain, it does not have to be included in the tax return.

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