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V2102-24 27 September 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Donation of main residence by individuals over 65 may be exempt from Income Tax

A taxpayer over the age of 65 has enquired whether donating their home to their daughter may be exempt from Capital Gains Tax. The Directorate General of Taxes (DGT) clarifies that the exemption applies if the property has served as the main residence for at least three years or during the two years prior to the transfer.

The question raised

Possibility of considering the dwelling as a primary residence for Personal Income Tax purposes.

The DGT's ruling

The transfer of the primary residence by persons over 65 years of age is exempt from capital gains tax pursuant to Article 33.4.b) of the Personal Income Tax Law (LIRPF). To qualify, the building must have served as a residence for a continuous period of at least three years, or must have had such character on any day during the two years prior to the transfer. Residence is a question of fact that must be substantiated with valid means of proof.

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