Back to index
V2608-23 27 September 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · vivienda habitual

Individuals over 65 may claim habitual residence transfer exemption without the need to reinvest proceeds

A person over the age of 65 sought clarification on whether the sale of their home, ownership of which was consolidated through successive inheritances and donations, allowed for the reinvestment exemption or the age-based exemption. The DGT has determined that, as it constitutes a habitual residence, the age-based exemption may be applied without the requirement to reinvest the funds.

The question raised

Possibility of applying the exemption for persons over 65 years of age, as provided in Article 33.4.b) of the LIRPF, to the capital gain generated by the sale of the dwelling, or whether the exemption for reinvestment in a primary residence may be applicable.

The DGT's ruling

For a dwelling to be considered a primary residence, it must be the effective residence of the taxpayer for at least three continuous years from the acquisition of the undivided share. If these requirements are met and the transferor is over 65 years of age, the exemption provided in Article 33.4.b) of the Personal Income Tax Law (LIRPF) applies. This exemption does not require the reinvestment of the amount into a new primary residence.

Book your free first meeting