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V2326-22 4 November 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · vivienda habitual

Income tax exemption for the sale of a primary residence may apply to individuals over 65

A person over the age of 65 has enquired whether they can apply for the exemption on the transfer of a primary residence after inheriting half of the property from their deceased husband. The Directorate General for Taxes (DGT) has ruled that this is possible, provided that the residency requirements are met.

The question raised

Possibility of applying the exemption for the transfer of a residence for individuals over 65 as provided in Article 33.4.b) of the Personal Income Tax Law (LIRPF).

The DGT's ruling

The exemption for the transfer of a primary residence for individuals over 65 is applicable if the building has been the effective residence of the taxpayer for a continuous period of at least three years since the acquisition of the undivided share. In this case, having resided in the dwelling since 2007 and having acquired full ownership following an inheritance, the dwelling maintains its status as a primary residence. Therefore, the capital gain derived from the transfer of full ownership shall be exempt.

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