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V2299-17 11 September 2017 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · ganancia patrimonial

Capital gains from house sales may be tax-exempt if used to establish a new life annuity

An individual over 65 sells their home and proposes to cancel an existing life annuity to establish a new one using the proceeds. The DGT clarifies whether this new annuity, established within the required timeframe, allows for the exemption of capital gains.

The question raised

Whether the new life annuity established within the legal period serves to exclude from taxation the capital gain derived from the transfer of the dwelling.

The DGT's ruling

If the new life annuity is established within six months from the transfer of the dwelling and meets the conditions of Article 42 of the IRPF Regulations, the capital gain may be excluded from taxation. The six-month period is calculated from the date of the transfer, even if it ends in the following tax year.

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