People over 65 may apply for Personal Income Tax (IRPF) exemption on home sales even if not registered at that address

The application of the exemption in Personal Income Tax (IRPF) for the sale of a primary residence for people over 65 has been the subject of a recent clarification by the Tax Administration. The core of the debate lies in whether the registered census address is the sole determining factor to validate this tax benefit.

What the DGT has ruled

The Dirección General de Tributos (DGT) has determined that the right to the exemption provided for in the IRPF Law does not depend exclusively on registration in the municipal census. According to the established criteria, the exemption is applicable if the property constitutes the taxpayer's habitual residence at the time of sale or if it was so during the two years prior to the transfer.

The body points out that the fact that a taxpayer is registered at an address different from the property being sold does not, in itself, deprive them of the right to the exemption. The regulations allow habitual residence to be proven through other means of evidence admitted under law before the Administration, beyond the census certificate.

What this means for you

If you are over 65 and planning to sell your primary residence, you should not assume that the lack of coincidence between your registered address and the property being sold will cause you to lose the tax benefit. This criterion protects the reality of residency against the administrative formality of the census.

However, the burden of proof lies with the taxpayer. This implies that, in the event of a possible inspection or request from the Tax Agency, you must be able to demonstrate that you actually lived in the property being sold, regardless of where your registration appears in the municipality.

What you should do

To ensure the application of the exemption, it is essential to have documentation that supports effective residence in the property. This can include utility bills (electricity, water, gas), service contracts, or any other document that certifies the actual occupation of the property during the period required by law. It is necessary to assess each particular situation to determine which evidence is most solid in your specific case.