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V2764-23 10 October 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Sale of main residence is taxable if age, dependency or reinvestment requirements are not met

A taxpayer inquired whether the exemption for the sale of a main residence could be applied upon early retirement. The DGT clarified that the exemption based on age or dependency does not apply if those specific requirements are not met, and that the reinvestment exemption requires compliance with specific construction and investment deadlines.

The question raised

1st. Whether, in the event of involuntary early retirement at age 63, the exemption for the sale of the primary residence could be applied.

The DGT's ruling

The capital gain from the sale of the primary residence is subject to tax if the individual is not over 65 years of age or is not in a state of dependency. For the exemption due to reinvestment in construction, the amount obtained must be applied within a period of two years (prior to or following the sale) and the work must be completed within a period of four years from the start of the investment. The periods are calculated from date to date.

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