Those over 65 must prove actual residence to exempt the sale of their home

The application of the exemption in Personal Income Tax (IRPF) for the transfer of a primary residence for those over 65 requires meeting strict residency requirements. Recently, the Dirección General de Tributos (DGT) has clarified that mere registration in the municipal register (padrón) does not guarantee the right to this tax exemption.

What the DGT has ruled

The inquiry analyzes whether a home can be considered a primary residence for the purposes of the exemption provided for in article 33.4.b) of the IRPF Law, even if the owners are not registered in the municipal register at that address. The Administration's criteria establish that the home must be the primary residence at the time of the transfer or must have been so in the two preceding years.

The key point of the resolution is that municipal registration is an element that, on its own, is not sufficient to certify residence or the status of a primary residence. The Administration maintains that the accreditation of residence is a matter of fact that the taxpayer must prove through any means admitted by law.

What it means for you

If you are over 65 and plan to sell your home to benefit from the capital gains exemption, you cannot take for granted that the certificate of municipal registration will be the only necessary proof in the event of an inspection. If, for various reasons, you are not listed in the register of the locality where your home is located, the burden of proof falls entirely on you.

The regulations require that residence be real and effective. This implies that the Tax Agency (Hacienda) may question the veracity of the primary residence if only the municipal register is presented, demanding additional evidence demonstrating that the property was effectively your center of life.

What you should do

In an operation of this type, it is necessary to have a set of evidences that support effective residence in the property. This may include:

• Utility bills (electricity, water, gas) in your name with consumption levels compatible with a permanent residence.
• Certificates of residence issued by other entities.
• Banking or service documentation demonstrating daily activity in said locality.

Since accreditation is a matter of fact, each situation requires an analysis of the available documentation to ensure compliance with the requirements of the IRPF Law and the IRPF Regulations.