Skip to content
Back to index
V2376-22 16 November 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · nuda propiedad

Donation of bare ownership of primary residence by those over 65 may be exempt from Income Tax

A taxpayer over the age of 65 has enquired whether donating the bare ownership of their primary residence to a nephew is exempt from Income Tax (IRPF). The Directorate General of Taxes (DGT) indicates that, provided the requirements for a primary residence are met, the capital gain arising from the donation of bare ownership is exempt.

The question raised

Whether the capital gain obtained by the donation to a third-degree relative would be exempt from Personal Income Tax.

The DGT's ruling

The donation of bare ownership generates a capital gain or loss. If the property is the donor's primary residence, the capital gain shall be exempt if the transferor is over 65 years of age. For it to be considered a primary residence, it must have been the residence for a continuous period of at least three years, or have been so at any time during the two years prior to the transfer.

Book your free first meeting