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V3044-17 22 November 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Exemption for sale of primary residence for those over 65 may be applied more than once

A taxpayer over the age of 65 has enquired whether they can apply the capital gains tax exemption for the sale of their primary residence if they have already utilised it in a previous transaction. The Directorate General for Taxes (DGT) has ruled that it is possible to benefit from this exemption on multiple occasions, provided that the requirements for a primary residence are met.

The question raised

Whether the capital gain generated by the sale will be exempt from taxation due to being over 65 years of age, even after having enjoyed said exemption on the occasion of the transfer of their previous primary residence.

The DGT's ruling

A taxpayer over 65 years of age may benefit from the exemption of capital gains arising from the transfer of their primary residence on more than one occasion. To this end, each transferred residence must be considered a primary residence at the time of the transfer or have been so on any day of the two years prior to said date. It is required that the building has been effectively and permanently inhabited by the taxpayer for a continuous period of at least three years.

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