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V2590-23 27 September 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · vivienda habitual

Exemption on sale of main residence for those over 65 requires the property to be the habitual residence

A 65-year-old taxpayer inquired whether the sale of their property in Algeciras is exempt from Personal Income Tax (IRPF), given they were renting in the Canary Islands. The Directorate General for Taxes (DGT) clarified that to apply the exemption for individuals over 65, the property sold must have been the taxpayer's habitual residence.

The question raised

Possibility of applying the exemption for reinvestment in a habitual residence following the sale of the property in Algeciras.

The DGT's ruling

The exemption for persons over 65 requires that the transferred property be the taxpayer's habitual residence. This condition requires effective and permanent residence for at least three continuous years. In the event of multiple residences, the habitual residence shall be that where the individual resides for the longest period during each tax period. Registration in the municipal register alone is not sufficient evidence to prove habitual residence.

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