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V3267-20 30 October 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Transfer of a percentage of primary residence by individuals over 65 may be exempt from Income Tax

A taxpayer over the age of 65 has enquired about the tax treatment regarding the sale of a 17% share of their primary residence. The DGT indicates that the resulting capital gain or loss may be exempt, provided the property meets the requirements of a primary residence.

The question raised

Tax treatment of said sale in the Personal Income Tax.

The DGT's ruling

The transfer of a percentage of ownership generates a capital gain or loss based on the difference between the acquisition and transfer values. If the transferred property is considered a primary residence according to Article 41 bis of the RIRPF, the transferor over 65 years of age may apply the exemption provided for in Article 33.4.b) of the LIRPF.

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