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V3586-20 17 December 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · vivienda habitual

Economic difficulties do not, in themselves, exempt from the three-year residency requirement for the housing exemption

A taxpayer over 65 years of age inquires whether selling their home due to economic difficulties would allow them to apply the capital gains exemption without having met the three years of continuous residence. The DGT responds that economic difficulties do not constitute a circumstance that necessarily compels a change of residence.

The question raised

Question posed: Consideration of the dwelling as primary for the purposes of applying the exemption provided in Article 33.4.b of the LIRPF. Whether, for the purposes of the capital gains exemption, a sale due to economic difficulties could be considered a circumstance that exempts compliance with the requirement of continuous residence in the dwelling for at least 3 years.

The DGT's ruling

To apply the exemption for the transfer of a primary residence to persons over 65 years of age, the building must have been the primary residence for at least three continuous years. Non-compliance with this period is only permitted if circumstances arise that necessarily require a change of residence, such as marriage or job relocation. Economic difficulties, in themselves, do not imply a requirement to alienate the property and are considered a voluntary decision, not an obligation that allows for the application of the exception.

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