Skip to content
Back to index
V3267-15 23 October 2015 · SG de Tributos Locales Criterion in force
OTRO · iivtnu

No tax exemption in IBI for funds required for maintenance or residential care

A 91-year-old person, under judicial incapacity, enquires whether the sale of their property to fund residential care may be tax-exempt. The DGT rules that no such exemption exists under current regulations.

The question raised

Whether it may be exempt from the tax, as the funds obtained are needed for its maintenance.

The DGT's ruling

The Tax on the Increase in Value of Urban Land (IIVTNU) taxes the increase in value of urban land resulting from its transfer. Tax benefits in local taxes cannot be recognized unless they are expressly provided for in regulations with the rank of law. The IIVTNU regulations do not contemplate any exemption based on the need for the funds obtained for the maintenance of the taxpayer.

Book your free first meeting