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V2484-19 17 September 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Exemption for sale of part of a main residence applies to those over 65

A couple over 65 sells 30% of their main residence to their children to allow them to move in. The DGT ruled that the parents may apply the age-related exemption and the children may apply the reinvestment exemption, provided all requirements are met.

The question raised

Whether, due to said sale of a part of the property, the exemption for persons over 65 years of age regarding the capital gain derived from their habitual residence may be applied.

The DGT's ruling

Owners over 65 years of age may apply the exemption under Article 33.4.b) of the Personal Income Tax Law (LIRPF) for the transfer of the proportional part of their habitual residence. For their part, the buyers (children) may avail themselves of the exemption for reinvestment in a habitual residence under Article 38.1 of the LIRPF if they reinvest the amount obtained in the acquisition of the new residence. However, the reinvestment exemption is not applicable to home extension works.

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