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V2088-18 16 July 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Sale of primary residence by individuals over 65 is exempt from Income Tax

A query was raised regarding whether the sale of a property by a person over 65 is tax-exempt and how to provide proof. The DGT ruled that the capital gain is exempt if the property is the primary residence or was so during the two years prior to the sale.

The question raised

Whether the capital gain obtained is exempt in accordance with Article 33.4.b) of the LIRPF, and what means may substantiate compliance with the requirements thereof in the event that requested by the State Tax Administration Agency.

The DGT's ruling

Capital gains from the transfer of the primary residence by individuals over 65 years of age are exempt pursuant to the Personal Income Tax Act (LIRPF). To this end, the dwelling must be the primary residence at the time of the transfer or have been so on any day during the two preceding years. Residence is a question of fact that may be substantiated by any means of proof valid under the law.

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