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V2976-18 19 November 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

The exemption for the sale of a primary residence may be applied to individuals over 65 years of age or persons in a state of dependency

An individual over 65 years of age and in a state of dependency inquires whether the exemption for the sale of their residence may be applied following a move to a geriatric care facility. The DGT responds that the capital gain shall be exempt if the residence was their habitual residence at the time of the transfer or had been so during the two preceding years.

The question raised

Whether the exemption provided for in Article 33.4.b) of the Personal Income Tax Law could be applied in the event of the sale of the residence.

The DGT's ruling

Capital gains arising from the transfer of a habitual residence are exempt for individuals over 65 years of age or persons in a state of severe or major dependency. For the exemption to apply, the building must be the habitual residence at the time of the transfer or must have been so on any day during the two preceding years. A residence is understood to have the character of habitual if it is resided in for at least three years, except in circumstances requiring a change of domicile.

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