Skip to content
Back to index
V3102-18 29 November 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Exemption for main residence does not apply if change of address is not mandatory or necessary

A taxpayer over 65 inquired whether the sale of their home is exempt from Personal Income Tax (IRPF) after having resided in it for only six months due to life circumstances. The Directorate General of Taxes (DGT) ruled that, as three years have not elapsed, the exemption would only apply if the change of residence were an unavoidable obligation rather than a voluntary act.

The question raised

Whether, at the time of its transfer, the dwelling held the status of a primary residence for the purposes of applying the capital gains exemption for individuals over 65 years of age, as set forth in Article 33.4.b) of the Personal Income Tax Law (Ley del IRPF), considering their status as a career diplomat—by virtue of which they have always maintained the status of a taxpayer for Personal Income Tax purposes—as well as the life events that led them to relocate their domicile to the province of Gerona.

The DGT's ruling

For a dwelling to be considered a primary residence without meeting the three-year residency requirement, a circumstance necessitating a change of domicile must occur. The term 'necessarily' implies a mandatory requirement that excludes voluntary acts or those performed for convenience. 'Life events' do not, in themselves, constitute a justified analogous cause. It is the responsibility of the Administration to assess, through evidence, whether the taxpayer's situation made it impossible not to change residence.

Book your free first meeting