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V2741-20 7 September 2020 · 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 married couple over the age of 65 enquired whether donating the bare ownership of their primary residence to their daughter would be exempt from capital gains tax. The DGT ruled that, provided the requirements for a primary residence are met, the exemption for individuals over 65 applies.

The question raised

Exemption of capital gains derived from the donation of a habitual residence by a person over 65 years of age.

The DGT's ruling

The donation of bare ownership generates a capital gain or loss by altering the composition of the assets. If the property is the habitual residence of the donors and they are over 65 years of age, the exemption provided in Article 33.4.b) of the Personal Income Tax Law (LIRPF) applies. To be considered a habitual residence, it must have been the residence for at least three continuous years or meet the assumptions for change of residence provided in the Regulations.

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