Exemptions

Capital gains that are evident from the following will be exempt from tax:

1. On the occasion of donations made to entities that give rise to the right to the deduction for donations regulated in article 68.3 of the Tax Law.

2. On the occasion of the transfer of their habitual residence by persons over 65 years of age or by persons in a situation of severe or high dependency in accordance with the Law on the promotion of personal autonomy and care for persons in a situation of dependency.

   The exemption also applies to the transfer of the bare ownership of the habitual residence by its owner over 65 years of age, who reserves the life usufruct over it.

3. On the occasion of the payment of the tax debt through the delivery of assets that are part of the Spanish Historical Heritage, provided for in article 97.3 of the Tax Law and the tax debts referred to in article 73 of Law 16/1985, of June 25, on the Spanish Historical Heritage.

4. In certain cases of payment in kind of the habitual residence.

   Capital gains are declared exempt:

   • Those arising from the transfer of the debtor's habitual residence, or that of the debtor's guarantor.

   • That the transfer is to surrender the residence in payment of debt or to judicial or notarial mortgage foreclosure.

   • That it be for the cancellation of debts secured by a mortgage on said habitual residence contracted with a credit institution or other entity that, in a professional manner, carries out the activity of granting mortgage loans or credits.

   • That the owner of the habitual residence does not have other assets or rights in sufficient amount to satisfy the entire debt and avoid the alienation of the residence.

5. Capital gains arising from the transfer of urban properties acquired for a fee from 12 May 2012 to 31 December 2012 will be exempt by 50%. (Additional Provision Thirty-seventh Personal Income Tax Law)

6. Capital gains that arise from the transfer of shares or interests acquired by the taxpayer between July 8, 2011 and September 29, 2013 in newly or recently created companies will be exempt, provided that the requirements and conditions established in the Thirty-fourth Additional Provision of the Personal Income Tax Law are met.

7. Income obtained by the debtor in bankruptcy proceedings, as a result of debt reductions and payments in payment of debts, provided that the debt does not derive from the exercise of economic activities.

8. Public aid to offset costs in buildings affected by the release of the digital dividend. (Fifth Additional Provision of the Personal Income Tax Law)

9. Income obtained from the repayment, as a result of agreements entered into with financial institutions, of amounts previously paid to the latter in application of clauses limiting interest rates on loans will be exempt. (Floor clause)

10. Exempt profits from reinvestment.