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Specific Income Tax Manual 2023 for people over 65 years of age

Transfer of habitual residence by persons over 65 years of age

Regulations: Articles 33.4 b) and Additional Provision fifteenth of the Law of IRPF and 41 bis of the Regulation

Capital gains derived from the transfer of the habitual residence by persons over 65 years of age are exempt. The exemption also applies if the bare ownership is transferred and the life usufruct of the property is reserved.

For the purposes of applying this exemption, it is understood that the taxpayer is transferring his or her habitual residence when said building constitutes his or her habitual residence at that time or had been considered as such until any day of the two years prior to the date of transfer.

When the full ownership of a property is divided between the bare owner and the usufructuary, this exemption will not apply to either of them.

Principal Residence item

Regulations: Additional Provision twenty-third Law IRPF and 41 bis Regulation. See also article 55.5 of the Personal Income Tax Regulations , in the version in force on 31 December 2012

For tax purposes, the taxpayer's habitual residence is considered to be building in which resides for a continuous period of at least three years .

However, it will be understood that the dwelling had a habitual character when, despite not having elapsed said period, the death of the taxpayer occurs or other circumstances occur that necessarily require the change of domicile, such as marriage, marital separation, job transfer, obtaining the first job or change of job or other similar justified circumstances.

In addition, the dwelling must be effectively and permanently inhabited by the taxpayer himself, within a period of twelve months , counted from the date of acquisition or completion of the works.

It will be understood that the dwelling does not lose its habitual character when any of the following circumstances occur:

  • When the taxpayer dies.

  • When other circumstances occur that necessarily prevent the occupation of the home.

  • When the taxpayer enjoys the habitual residence due to position or employment and the acquired residence is not used. The twelve-month period shall begin to run from the date of termination.

When the dwelling has been effectively and permanently inhabited by the taxpayer within a period of twelve months, counted from the date of acquisition or completion of the works, the three-year period to consider it as the taxpayer's habitual will be computed from this last date