Skip to content
Back to index
V2487-20 21 July 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Donation of main residence by individuals over 65 may be exempt from Income Tax

An individual over the age of 65 has enquired whether donating half of the full ownership of their main residence to their child is exempt from Income Tax. The Directorate General for Taxes (DGT) has ruled that, provided the requirements regarding age and the status of the property as a main residence are met, the capital gain arising from the donation is exempt.

The question raised

Whether the exemption for the transfer of a habitual residence by persons over 65 years of age, as set forth in Article 33.4.b) of the Personal Income Tax Law, may be applicable.

The DGT's ruling

The donation of full ownership of a part of a real estate property generates a capital gain or loss subject to Personal Income Tax (IRPF). If the donor is over 65 years of age and the property constitutes their habitual residence, the resulting capital gain shall be exempt pursuant to Article 33.4.b) of the Personal Income Tax Law (LIRPF). The condition of habitual residence must be met at the time of the transfer or must have existed during the two preceding years.

Book your free first meeting