Those over 65 must meet the minimum age on the date of their home sale

Managing a primary residence at the time of retirement or during changes of residence carries critical tax implications. An error in calculating deadlines or verifying age requirements can result in unforeseen costs in the income tax return.

What the DGT has ruled

The Dirección General de Tributos (DGT) has specified the requirements necessary to benefit from the exemption provided in Article 33.4.b) of the Personal Income Tax Law (LIRPF). According to the established criteria, for the capital gain derived from the sale of a home not to be taxed, two simultaneous conditions must be met:

• Age: The taxpayer must have reached the age of 65 on the exact date of the transfer of the property.
• Use of the home: The property must have been the taxpayer's primary residence up until any day within the two years prior to the sale.

In the case analyzed, the administration determines that if the taxpayer is 64 years old on the day of the sale, they cannot apply the exemption, even if the home has been their main residence for years.

What this means for you

If you are an individual planning to sell your primary residence to reinvest or for age-related reasons, the date of the signing before a notary is the determining factor. It is not enough to be in the process of reaching retirement age or to have completed 64 years; the regulations require that the age requirement has materialized before the transfer occurs.

What you should do

Before formalizing any sale and purchase operation, it is necessary to verify the exact age the seller will have on the scheduled date of the signing. A discrepancy of a few days or months can mean the loss of a significant tax benefit. It is recommended to evaluate the date of the operation based on compliance with this legal requirement to avoid contingencies in the IRPF settlement.