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V2922-19 23 October 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Sale of a garage space may be exempt if treated as primary residence for those over 65

A taxpayer inquired whether the sale of a garage space, acquired alongside their primary residence, is exempt from Personal Income Tax (IRPF) due to being over 65 years of age. The Directorate General for Taxes (DGT) responded that it may be exempt if the garage space meets the requirements to be treated as part of the primary residence.

The question raised

Whether the disposal of the aforementioned parking space is taxed under Personal Income Tax (IRPF) as a capital gain, or is exempt from taxation pursuant to Article 33.4.b) of the LIRPF, as well as the calculation of said gain.

The DGT's ruling

The transfer of a garage space generates a capital gain or loss. However, the exemption for the transfer of a primary residence by persons over 65 may apply if the space was acquired in the same transaction as the residence, is located in the same building, and is assimilated to the primary residence. To this end, it must maintain said status at the time of the transfer or during the two preceding years.

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