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V3172-18 12 December 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Sale of primary residence by those over 65 may be exempt from Income Tax if requirements are met

A taxpayer over the age of 65 has enquired whether the capital gain from the sale of their primary residence is exempt. The DGT clarifies that the exemption applies if the property has served as the primary residence at the time of transfer or during the two preceding years.

The question raised

Regarding the taxation of the capital gain derived from said disposal, whether the provisions of Article 33.4.b) of the LIRPF are applicable, and if the answer is affirmative, the requirements demanded for said exemption to be applicable.

The DGT's ruling

The transfer of real estate generates a capital gain or loss subject to Personal Income Tax (IRPF). The exemption under Article 33.4.b) of the LIRPF applies if the taxpayer is over 65 years of age (or in a state of dependency) and the property has been their habitual residence for at least three years, or has been considered such at any time during the two years prior to the transfer. The date of the transfer is determined by the delivery of the property pursuant to the Civil Code.

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