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

Reverse Mortgage

Regulations: Additional Provision fifteenth of the Law of IRPF and the Additional Provision first of Law 41/2007, of December 7 ( BOE of the 8th)

The amounts received as a result of the dispositions made of the habitual residence ( reverse mortgage ) by persons over 65 years of age are not taxed in the Personal Income Tax , provided that they are carried out in accordance with the financial regulations relating to the acts of disposition of assets that make up the personal assets to assist the economic needs of old age and dependency.

A "reverse mortgage" means a loan or credit secured by mortgage on real estate that constitutes the applicant's habitual residence, provided that they meet the following requirements

  1. That the applicant and the beneficiaries that he/she may designate are persons of age equal to or greater than 65 years.

  2. That the debtor has access to the amount of the loan or credit through periodic or one-time provisions.

  3. That the debt is only enforceable by the creditor and the guarantee enforceable when the borrower dies or, if so stipulated in the contract, when the last of the beneficiaries dies.

  4. That the mortgaged property has been appraised and insured against damage in accordance with the terms and requirements established in articles 7 and 8 of Law 2/1981, of March 25, on the Regulation of the Mortgage Market.

These mortgages may only be granted by credit institutions and authorised insurance companies operating in Spain.