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V3931-16 19 September 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · nuda propiedad

Exemption for those over 65 does not apply without full ownership of the property

A couple over the age of 65, where one holds bare ownership and the other holds a life interest, inquired whether they could apply for the exemption regarding the transfer of a primary residence. The Directorate General for Taxes (DGT) ruled that they cannot apply for the exemption because tax benefits related to the primary residence require full ownership of the property.

The question raised

Possibility of applying the exemption set forth in Article 33.4.b) of the Personal Income Tax Law.

The DGT's ruling

Tax benefits related to habitual residence are linked to the ownership of full title, even if held jointly. Since full title is not held by either the bare owner or the usufructuary, the exemption for the transfer of a habitual residence for persons over 65 years of age is not applicable.

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