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V2115-18 17 July 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · vivienda habitual

Individuals over 65 may claim primary residence exemption on their proportional share of full ownership

A query was raised regarding whether a parent over the age of 65 can apply the primary residence exemption upon the sale of their home if they do not hold full ownership of the property. The Directorate General of Taxes (DGT) ruled that the exemption applies to the proportional share of the capital gain corresponding to their percentage of full ownership.

The question raised

Whether the exemption for the transfer of a primary residence for individuals over 65 years of age may be applied.

The DGT's ruling

The exemption for the transfer of a primary residence for individuals over 65 years of age applies to the proportional part of the capital gain corresponding to the percentage of full ownership held by the transferor. Tax benefits linked to the primary residence are tied to the ownership of full title, even if such title is shared. To this end, the dwelling must meet the primary residence requirements established in the Personal Income Tax Regulations.

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