Those over 65 must own their home for three years to qualify for the exemption

The application of the exemption in Personal Income Tax (IRPF) for the transfer of a primary residence is a tax benefit of great relevance for individuals. However, the Dirección General de Tributos (DGT) has specified the temporal requirements necessary to access this provision when the taxpayer is over 65 years old.

What the DGT has ruled

The inquiry analyzes the possibility of applying the exemption provided for in Article 33.4.b) of the IRPF Law. According to current regulations, taxpayers over 65 do not pay tax on the capital gain derived from the transfer of their primary residence. Nevertheless, the DGT establishes that for this exemption to be applicable, the taxpayer must have held full ownership of the home for a minimum period of three years.

This temporality requirement ensures that the home meets the condition of being the taxpayer's habitual residence in a stable manner before its sale. The reference regulations for this criterion are Law 35/2006 on IRPF and its Regulation (RD 439/2007).

What this means for you

If you are over 65 and plan to sell your primary residence, it is not enough for it to be your current home to avoid paying taxes on the capital gain. You must verify that you have been the full owner of the home for a period equal to or greater than three years.

This criterion directly affects the calculation of the tax burden at the time of the transfer. If the ownership period is shorter than required, the gain obtained from the sale of the home cannot benefit from the specific exemption for those over 65, remaining subject to the corresponding taxation in the savings tax base.

What you should do

Before formalizing any sale and purchase operation, it is necessary to carry out the following checks:

• Verify the acquisition date and the ownership of the property to confirm that the three-year period of full ownership is met.
• Check that the home meets the rest of the legal requirements to be considered a primary residence.
• Assess the legal status of the property in case there are usufructs or rights of use that could alter the calculation of ownership.

Each wealth situation presents particularities that require a prior technical analysis to determine the correct application of the rule.