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V2195-24 14 October 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Income tax exemption for donation of main residence may apply if residency requirements are met

A taxpayer over 65 has enquired whether they can apply for a capital gains tax exemption when donating their main residence to their children. The Directorate General for Taxes (DGT) clarifies that the exemption is available if the property has served as the main residence at the time of transfer or during the two years prior.

The question raised

Whether, in their case, the exemption from capital gains tax arising from the donation of a habitual residence by persons over 65 years of age is applicable.

The DGT's ruling

The transfer of a dwelling by persons over 65 years of age may be exempt from taxation if the building constitutes their habitual residence at the time of the transfer or was such at any time during the two preceding years. The concept of habitual residence requires continuous residence for at least three years, except in justified exceptional circumstances. The proof of residence is a matter of fact which must be established by the taxpayer.

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