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V2185-20 29 June 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Age or reinvestment exemptions unavailable if property ceased to be main residence over two years ago

A taxpayer over 65 enquired whether the sale of their former main residence could be exempt based on age or reinvestment. The DGT ruled that this is not possible because the property had ceased to be the main residence more than two years prior to the sale.

The question raised

Clarification as to whether, regarding the capital gain generated by its sale, the taxpayer may or may not be exempt from taxation due to being over 65 years of age or, alternatively, whether they are entitled to the exemption for reinvestment in the habitual residence.

The DGT's ruling

To apply the exemptions based on age or reinvestment, the property must be the habitual residence at the time of the transfer or must have been so during the two preceding years. In this case, the property ceased to be the habitual residence more than two years prior to the transfer; therefore, neither the exemption for persons over 65 nor the reinvestment exemption is applicable.

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