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V2754-17 25 October 2017 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · ganancia patrimonial

Reinvestment exemption for life annuities may apply to property sales for individuals over 65

A taxpayer over the age of 65 has enquired whether they can apply for the exemption for reinvestment in life annuities following the sale of a property. The Directorate General for Taxes (DGT) clarifies that this is possible provided all legal and regulatory requirements are met.

The question raised

Possibility of applying to the capital gain corresponding to said amount the exemption for reinvestment in life annuities, provided for in art 38.3 of Law 35/2006

The DGT's ruling

Individuals over 65 years of age may exclude from taxation capital gains arising from the transfer of assets if the total amount obtained is allocated to the establishment of an insured life annuity within a period of six months. The maximum amount for this exemption is 240,000 euros. It is possible to establish multiple life annuities to apply the exemption. If the economic rights of the annuity are anticipated, the capital gain shall be subject to taxation again.

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