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V2866-20 23 September 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Income tax exemption for donation of primary residence to those over 65 may apply

A 68-year-old taxpayer inquired whether they could apply for an exemption regarding the donation of a percentage of their primary residence to their son. The Directorate General of Taxes (DGT) ruled that the exemption for capital gains derived from such a donation is indeed applicable.

The question raised

Whether the capital gains exemption derived from the donation of a habitual residence by a person over 65 years of age is applicable.

The DGT's ruling

The donation of a percentage of home ownership generates a capital gain or loss. If the property is the habitual residence of the transferor and the transferor is over 65 years of age, the exemption provided for in Article 33.4.b) of the Personal Income Tax Law (LIRPF) regarding the capital gain derived from the transfer shall apply.

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